IH2A submitted $5B national green hydrogen hub plan to govt: India Hydrogen Alliance submitted a ‘National Green Hydrogen Hub Economic Viability and Development Plan’ to the Prime Minister’s Office (PMO), Cabinet Secretariat and Ministry of New and Renewable Energy (MNRE). The Plan has potential to create five large National Green Hydrogen Corporations collectively worth USD 5 bn by 2030, through public-private partnerships. The Plan seeks public finance support for production and offtake to create the necessary infrastructure in the initial 2024-2030 period, and publicly list the national hydrogen corporations created as a result to fund the next wave of investments to scale up the hydrogen economy. Link
POLICY & MARKET DEVELOPMENTS
- Government Rolls Out INR 17,490 Cr Scheme For Green Hydrogen: Government of India has announced INR 17,490 crore scheme to incentivize the production of green hydrogen and the manufacturing of electrolysers between FY 2026-30. The scheme would provide INR 13,050 crore in incentives for green hydrogen production and INR 4,440 crore for electrolyser manufacturing. Under the scheme, the government would offer incentives for the production of up to 4,50,000 metric tonnes per annum of green hydrogen and the manufacturing of up to 1,500 MW of electrolysers. Link
- WB Approves $1.5 Billion in Financing to Support India’s Low-Carbon Transition: The financing will support National Green Hydrogen Mission, which aims to stimulate $100B in private sector investment by 2030. The financing will also support government's plan to issue bids for 50 GW of renewable energy each year from FY23-24 to FY27-28. The finance will be provided in the form of a $1.44B loan from IBRD and a $56.57M credit from IDA. Link
- India urges Germany to rethink parts of green H2 tender: India has shared its concerns with Germany over certain aspects of the latter's global green hydrogen tender. Government of India believes that some of the criteria in the tender are too restrictive and could hinder Indian companies from participating. The two countries have already signed a joint declaration of intent on the Indo-German Green Hydrogen Task Force. Link
- AP Announces Green Hydrogen and Green Ammonia Policy 2023: Andhra Pradesh government has launched a green hydrogen and green ammonia policy 2023 with a target of producing 0.5 million metric tonnes per annum (MTPA) of green hydrogen and 2 MTPA of green ammonia in the next five years. The policy will reimburse 100% of the net state goods and services tax (SGST) on the sales of green hydrogen and green ammonia for the first five years after the project’s completion. Renewable power used to generate green hydrogen/green ammonia will get exemption from electricity duty for five years. Link
- India's L&T awards solar tracker contract for NEOM green hydrogen project: PVH, a Spain-based solar tracker manufacturer, has won a contract from India's Larsen & Toubro (L&T) to supply solar trackers for the world's largest green hydrogen project in NEOM, Saudi Arabia. The project, owned by NEOM Green Hydrogen Company (NGHC), is located at Oxagon within NEOM. PVH will supply solar trackers for NGHC's 2.97-gigawatt peak (GWp) solar PV plant from its Jeddah manufacturing facility. Link
- Engine Maker Cummins To Fund $1 Billion In India: Cummins, an American multinational corporation that manufactures engines and power generation equipment, plans to invest $1 billion in India over the next 10 years. The investment will be used to develop and manufacture green energy products, such as hydrogen fuel cells and electric vehicles. Link
- ACME Solar to raise debt of INR 4K cr for hydrogen-based projects: ACME Solar, an Indian renewable energy company, is in talks with lenders to secure debt amounting to INR 4,000 crore for funding its green ammonia and green hydrogen projects in Tamil Nadu, India and Oman. The company has solar power projects across 12 states in India with a capex investment and commitment of around USD 8 billion. Link
- Cost-Effective, Efficient Hydrogen From Seawater Possible; Researchers, IIT Madras: In a significant development, a team of researchers from the Department of Physics at IIT-Madras has achieved a major breakthrough in the field of seawater electrolysis. The team has successfully developed critical components that enable the efficient and cost-effective electrolysis of seawater to generate hydrogen. The ground-breaking approach involves the use of alkaline seawater as an electrolyte instead of pure or fresh water. Link
- L&T plans GW-scale H2 electrolyser manufacturing: L&T and McPhy Energy have signed a binding agreement for a long-term partnership to produce electrolysers for the green hydrogen market. McPhy will grant L&T an exclusive license to manufacture its pressurized alkaline electrolyser technology. L&T plans to set up a GW-scale manufacturing facility for electrolysers based on McPhy technology in India. Link
- Honeywell to bring new carbon capture, hydrogen tech to India: Honeywell International has developed several new technologies to reduce carbon emissions. These technologies will be soon be made available in India. They include CCM technology for green hydrogen production, green hydrogen technology, LOHC, and ASCC technology. Link
- Indian Railways plans to operate 35 Hydrogen trains: Indian Railways plans to operate 35 hydrogen trains under the 'Hydrogen for Heritage' initiative. Hydrogen fuel cells will be used as an alternative to diesel engines. The project is estimated to cost INR 80 crores per train and INR 70 crores per route for ground infrastructure. Link
GLOBAL DEVELOPMENTS
- Sinopec's first green hydrogen plant starts production in Xinjiang: China's Sinopec has started producing green hydrogen at a plant in Xinjiang using solar power. The plant has a capacity of 10,000 metric tons of hydrogen a year. It is the largest green hydrogen facility operating in China. Link
- Germany and South Africa Partner To Advance Green Hydrogen Projects: Germany will support South Africa to develop the green hydrogen market, facilitate imports, and connect producers with technology partners. South Africa needs substantial investment of $17.28 billion to kick-start the industry. So far, South Africa has received $700 million out of the $8.5 billion pledged by countries like France, Germany, the United States, the United Kingdom, and the European Union. Link
- NDF Contributes To Financing World’s Largest Green Hydrogen Project: The National Development Fund (NDF) has financed the largest green hydrogen production plant in the world, which will be built in Saudi Arabia's NEOM city. The project is a joint venture between the NDF, the Saudi Industrial Development Fund (SIDF), and the National Infrastructure Fund (NIF). The financing for the project exceeds SAR 10.3 billion (USD 2.7 billion), which is part of a larger initiative by the Saudi government to advance green and sustainable solutions in the Kingdom. The plant is expected to produce 600 tonnes of carbon-free hydrogen per day by the end of 2026. Link
- Morocco’s green hydrogen potential attracts European investors: Morocco is becoming a hub for green hydrogen production. The Dutch government has signed a financing deal with Morocco to look into green hydrogen infrastructure. Germany has included Morocco in its H2Uppp program, which targets hydrogen projects in developing countries. Belgian energy firm John Cockerill plans to invest in green hydrogen in Morocco, where they plan to manufacture key equipment to transform electricity into hydrogen at a lower cost. Morocco has the potential to supply 4% of global demand for clean hydrogen. Link
- Japan Earmarks $107 Billion For Developing Hydrogen Energy: Japan plans to increase the annual supply of hydrogen by six times from the current level to 12 million tons by 2040. The government will invest 15 trillion yen (USD 107 billion) in funding from both private and public sources to build up hydrogen-related supply chains over the next 15 years. The revised plan prioritizes nine strategic areas, including development of water electrolysis equipment, fuel storage batteries and large-size tankers for transporting hydrogen. Link
- EU pledges €2bn in green hydrogen investments in Brazil: The European Union pledged to invest €2 billion in Brazil's hydrogen industry as part of its Global Gateway investment program. The investment would be part of the EU's €300 billion program, which is the bloc's response to China's Belt and Road Initiative. The two programs seek to expand the EU and China's influence areas globally by investing in infrastructure. Link
- Netherlands increases subsidies for green hydrogen production: The Dutch government will increase subsidies for the production of green hydrogen by 1 billion euros ($1.1 billion) next year and another 3.9 billion euros in the years after. The government's goal is to have the capacity to produce at least 4 gigawatt of green hydrogen in 2030 and double that amount in 2032. Link