Production and Offtake Incentives sought for period 2024-2030, to create five National Green Hydrogen Hubs

Potential to create National Green Hydrogen Corporations, hydrogen infrastructure through public-private partnerships

NEW DELHI/ MUMBAI, JUNE 7, 2023: Industry body India Hydrogen Alliance (IH2A) submitted a National Green Hydrogen Hub Economic Viability and Development Plan to the Government of India, with 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 green hydrogen 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.

The USD 5 bn National Green Hydrogen Hub Economic Viability and Development Plan was submitted by IH2A to the Prime Minister’s Office (PMO), Cabinet Secretariat and Ministry of New and Renewable Energy (MNRE) in the Government of India.

Speaking on the National Green Hydrogen Hub Economic Viability and Development Plan, Jill Evanko, Chief Executive and President, Chart Industries (NYSE: GTLS), and founding member, IH2A, said, “This is a pathway for India to accelerate Green Hydrogen Hub development and create national infrastructure assets in a financially viable manner. India can leapfrog other economies on green hydrogen development, by sharing the risks and rewards of green hydrogen project development between public and private sectors. Sustained public finance support for national hubs is crucial for financial viability. India should announce at least one of these large-scale green hydrogen hubs during the G20 Summit this year. The Indian government stands to gain significantly from this approach, which demonstrates how India can create a National Green Hydrogen Unicorn within next seven years.”

The National Green Hydrogen Hub Economic Viability and Development Plan was prepared by starting with a reference economic model of the Green Kochi Hydrogen Hub (GKH2), as a 50:50 public-private Special Purpose Vehicle (SPV) with a 150 MW Electrolyser Capacity, Storage and Evacuation Infrastructure, Renewable Energy inputs, Green Ammonia production plants, and offtake by industrial and mobility users, with a USD 468 mn CAPEX outlay over a 20-year project period. The Plan recommends similar large-scale Green Hydrogen Hubs to be developed in Gujarat, Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh.

Speaking on preparation of the National Green Hydrogen Hub Economic Viability and Development Plan, Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead, said, “The economic modelling is based on few assumptions regarding public finance incentives, renewable energy costs, end-use offtake and project structuring on a public-private partnership format. The model is replicable and demonstrates that a financially viable green hydrogen can be designed and built. The model can be supported with techno-commercial studies, and should accelerate project development.”

IH2A has submitted proposals for state-level green ammonia and hydrogen hubs to Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. The National Green Hydrogen Hub Economic Feasibility and Development Plan has been proactively prepared by India Hydrogen Alliance (IH2A) to accelerate hydrogen commercialisation. Full details of proposed plan are on link.

EDITOR NOTES:

• Please refer to attached presentation for details on National Green Hydrogen Hub Economic Feasibility and Development Plan, with aim of developing five National Green Hydrogen Hubs by 2030.
• The reference Green H2 Hub SPV is structured as a 50:50 venture between government (central and state government, govt.-owned enterprises) and private participants, with an initial capitalization of USD 200 mn, to build production, storage and evacuation infrastructure over a 20-year period, with a recapitalization of an additional USD 200 mn expected in 2030.
• The Green H2 Hub SPV is expected to be able to produce compressed gaseous hydrogen (for industrial use), green ammonia and liquid hydrogen (for transport use, with 16 hydrogen refuelling stations), with a 20-year CAPEX plan of USD 468 mn, to be funded with concessional credit rate of 6%, and estimated 21,000 MT of green hydrogen per annum.
• Two industrial offtakers (refinery and fertilizers) and one transport offtake (state transport corporation) are expected to be invited to participate in the equity of the SPV, to eliminate volume and price risk. The offtakers are expected to signed Take-or-Pay Hydrogen Purchase Obligation (HPO) agreements with the SPV. The captive RE supplier is also expected to be invited to participate in the equity of the SPV.
• The Green H2 Hub SPV is expected to be profitable by 2028, with the following assumptions:
  1. Public finance support for Hub CAPEX, with expected incentives of USD 210 mn over 2024-2030 period, and USD 100 mn in the post 2030 period
  2. Public finance support in the form of offtake incentives (by the three offtake organizations), amounting to USD 178 mn over 2024-2030 period, and USD 182 mn in the post 2030 period.
  3. Project CAPEX will be undertaken in three phases, with 50 MW electrolyser capacity built in each phase, to ensure complete offtake of the hydrogen produced at each phase.
• The Green H2 Hub SPV can turn profitable from Year 5 (2028) and could be potentially listed on the Indian bourses in 2030, for a potential USD 1 bn valuation to fund next phase of CAPEX spending.
• The Green Hydrogen offtake price is expected to include the cost of production, storage and evacuation infrastructure, for all three end-uses, starting with USD 6/kg in Year 1 (2024), reach USD 4/kg (in Year 8, 2031) and expected to go down to USD 1.5 in Year 20; without any govt support/ incentives.
• Public finance support, in form of CAPEX and offtake incentives, for National Green H2 Hubs, is crucial for creating financially viable green hydrogen infrastructure, especially in the initial 2024-2030 period.

ABOUT IH2A

The India Hydrogen Alliance is an industry-led coalition of global and Indian companies committed to creation of a hydrogen value-chain and economy. IH2A works with private sector partners, the government and public to help build the hydrogen economy in India through industry and public-private collaborations. Lead members include Chart Industries, Reliance Industries, JSW and others.

India Hydrogen Alliance (IH2A) has submitted a National Green Hydrogen Hub Economic Viability and Development Plan to the Government of India (Prime Minister’s Office, Cabinet Secretariat and Ministry of New and Renewable Energy), detailing the 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 to fund the next wave of investments to scale up the hydrogen economy.

To read more, click on the link below:

IH2A USD 5 bn National Green Hydrogen Hubs by 2030 - GKH2 as a Financially Viable H2 Hub - June 7 2023

• EIB, India Hydrogen Alliance to bring industry, investors and government agencies together on green hydrogen hubs and projects
• Indicative funding of EUR 1 billion for large-scale projects in public sector
• EIB working with the Indian government on a credit facility to provide critical public sector investments supporting the development of the green hydrogen industry

Mumbai, 8 February 2023: In Mumbai Kris Peeters, Vice President of the European Investment Bank (EIB), the bank of the European Union, formally agreed today to join the India Hydrogen Alliance (IH2A) and increase support for large-scale green hydrogen hubs and projects across India with an indicative funding of EUR 1 billion, subject to Indian Government and EIB approvals.

Kris Peeters, Vice President of the European Investment Bank, said, “The European Investment Bank recognises the huge potential of developing and reducing the cost of green hydrogen in India. Together with industry, national government and state authorities we are exploring how the EU Bank might play a role in supporting India’s National Hydrogen mission, in order to enable the use of green hydrogen to decarbonise energy, industry and transport. The strengthened cooperation through the India Hydrogen Alliance will contribute to implement a national green hydrogen roadmap that delivers India’s energy transition and net-zero carbon plans alongside strengthening energy security in the years ahead. Joining IH2A builds on the EIB’s global climate engagement and our support for climate action in India over the last three decades.”

Jillian Evanko, President and CEO, Chart Industries and Founding Member, IH2A, said, “We are delighted to partner with EIB to bring much needed funding to help develop the green hydrogen economy in India. Funding for large-scale green hydrogen projects is nascent and EIB’s participation will help solve a key eco-system problem. We look forward to work closely with EIB, investors, industry and the government to help realize hydrogen commercialisation at scale, in the next half decade. This is an essential part of getting the first few steps of the hydrogen transition right, before we look at 2030 scenarios.”

H.E. Ugo Astuto, EU Ambassador to India said: “In September the First EU-India Green Hydrogen Forum was held in Delhi during the visit of Commissioner for Energy Kadri Simson, strengthening EU-India clean energy cooperation. The European Investment Bank joining the India Hydrogen Alliance today further highlights a Team Europe approach for a green and resilient future, underpinning the EU Global Gateway strategy.”

The European Investment Bank is the world’s largest international public bank and leading financier of renewable energy and climate action around the world. As a long-standing partner for renewable energy in India, and largest climate financier in the world, the new memorandum of understanding with IH2A will enable the EIB to further support clean energy investment and back development of green hydrogen in India.

IH2A is focusing on attracting global climate finance, for development of large-scale hydrogen hub development in India, working with Government of India, state governments, global hydrogen players and Indian companies. This memorandum of understanding follows the Government of India’s confirmation of USD 2 billion public finance allocation for the National Green Hydrogen Mission and will support IH2A in bringing together global climate finance players and funding agencies, to work with industry players and government agencies to plan and execute large-scale green hydrogen projects and develop the green hydrogen economy in India.

The EIB is currently exploring a credit facility with the Indian government to provide investments to critical public sectors supporting the development of the green hydrogen industry. This facility would support the Indian government’s efforts to commercialise upcoming green hydrogen technologies and accelerate the cost reduction by investing continuously in innovation, R&D, green hydrogen hubs, and pilot projects.

The EIB is financing green hydrogen investment in Europe and working closely with partners across Africa, Latin America and Asia to accelerate large scale green hydrogen investment.

This project, supporting climate action, forms part of the EU’s Global Gateway Initiative in support of projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.

Notes to Editors

About the EIB:

The European Investment Bank is the long-term lending institution of the European Union owned by its 27 Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB brings the experience and expertise of our in-house engineers and economists to help develop and appraise top quality projects. As an AAA-rated, policy-driven EU financial institution, the EIB offers attractive financial terms – competitive interest rates with loan durations aligned with the projects. Through our partnerships with the EU and other donors, we can often provide grants to further improve the development impact of the projects we support.

About the EIB in India:

Since the beginning of its operations in India in 1993 the EIB supported 26 projects in the country and invested close to EUR 5 billion in transport, energy, agriculture, fisheries and forestry projects as well as India`s small and medium enterprises.

About the EIB in Asia:

For 25 years, the EIB has supported economic development in Asia and the Pacific region. The projects we finance make people’s lives easier - from cutting travel times in Bangalore with a new metro line, to providing cheaper, cleaner energy to western Nepal.

In Asia, we have chosen to focus our lending on climate action across all sectors. We also work to include gender equality in our projects, ensuring that women, men, girls and boys can benefit from projects equally and equitably.

About Global Gateway initiative

EIB Global is a key partner in the implementation of the EU’s Global Gateway initiative, by supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors. Investing in connectivity is at the very heart of what EIB Global does and has longstanding experience of 60 years. Alongside our partners, fellow EU institutions and EU member states, we aim to support investment of €100 billion, around one third of the overall envelope of the initiative, by the end of 2027.

About India H2 Alliance (IH2A)

The India H2 Alliance is an industry coalition of global and Indian companies committed to the creation of a hydrogen value-chain and economy in India. IH2A collaborates with private sector partners, the government and the public to ensure that costs of hydrogen production are brought down, a local supply chain for hydrogen and related applications grows and India is able to achieve its net-zero carbon ambitions by developing a hydrogen economy that complements its national renewable energy and EV/battery-technology plans. The IH2A Steering Group comprises of Chart Industries, Reliance Industries Limited (RIL), JSW Group, Hero Future Energies and bp, who are supported by the IH2A Secretariat run by consulting firm FTI Consulting. More information on IH2A and its activities, is available at www.IH2A.com.  

Press contacts

EIB: Enrico Possenti, e.possenti@eib.org tel.: +352 437982144 / Mobile: +352 691285532
Website: www.eib.org/press - Press Office: +352 4379 21000 – press@eib.org

IH2A: Pragya Gupta, FTI Consulting, Mobile: +91 8130260865 pragya.gupta@fticonsulting.com

Hero Future Energies, bp, Welspun Corp, Tubacex, Climate Policy Initiative, and Climate Group join IH2A

IH2A to focus on global climate finance, large-scale hydrogen hub development with state governments

NEW DELHI/ MUMBAI, DECEMBER 19, 2022: The India H2 Alliance (“IH2A”) has expanded its membership with the inclusion of Hero Future Energies, bp, Welspun Corp Ltd., Tubacex, Climate Policy Initiative, and Climate Group to its membership base. This takes IH2A’s membership base to fifteen, comprising seven industry members and eight partner organisations, all of whom work closely with the Government of India and state governments to help develop the hydrogen economy and supply chain in India.

IH2A is working on attracting global climate finance, for development of large-scale hydrogen hub development in India, working with Government of India, state governments, global hydrogen players and Indian companies.

Srivatsan Iyer, Global Chief Executive Officer, Hero Future Energies, said, “Commercialising green hydrogen at scale requires partnerships across the value chain. We are very pleased to join the India Hydrogen Alliance and look forward to working with industry players and government enterprises to help them decarbonize quickly. Getting green hydrogen commercialisation right is an important step in the national plans for Net Zero.”

Vipul Mathur, MD & CEO of Welspun Corp Ltd., said, "We are happy to be a part of this collaborative effort towards commercializing Green Hydrogen, which will collectively help us strengthen the endeavour towards a net-zero economy globally. As demand for hydrogen becomes a mainstay worldwide, we are looking forward to being a part of this paradigm shift in the new energy space, while focusing on building a future-ready world."

Jillian Evanko, President and CEO, Chart Industries and Founding Member, IH2A, said, “We welcome the six new members to the India Hydrogen Alliance. This is strong commitment from global and Indian stakeholders to help develop the hydrogen economy in India. We look forward to working together with industry, government of India and the state governments to help commercialise hydrogen and build India’s Net Zero pathway.”

New members Hero Future Energies and bp will join Chart Industries, Reliance Industries Limited (RIL) and JSW Group in the IH2A Steering Group, which is supported by the IH2A Secretariat run by consulting firm FTI Consulting.

India Hydrogen Alliance (IH2A) has proposed Green Kochi Hydrogen Hub (GKH2) structure for commercializing green hydrogen through formation of a Green Hydrogen Hub in the state of Kerala.

For more details please click on read more

Industry body proposes 150 MW Electrolyser Plant, Green Hydrogen Storage and Infrastructure Hub in Kochi
Phased, large-scale Green Hydrogen Hub to be evaluated by government, industry and funding agencies

NEW DELHI/ MUMBAI/ KOCHI, NOVEMBER 14, 2022: Industry body India Hydrogen Alliance (IH2A) and the Government of Kerala has announced that it is jointly evaluating a proposal for building the Kochi Green Hydrogen (KGH2) Hub, a large-scale green hydrogen hub with multiple use-cases, to the Government of Kerala. The proposal envisages potential capital expenditure of USD 575 mn, to build a 60-tonnes per day (TPD) green hydrogen plant with a 150 MW Electrolyser, Storage and Infrastructure, which could achieve giga-watt scale and build the hydrogen economy in Kerala. The plan was shared by IH2A and the Kerala Government, today after a consultation meeting between government, industry and funding agencies.

IH2A’s KGH2 Hub plan is modelled after the Hydrogen Valley projects in the EU, to create production, storage, transmission and end-use infrastructure for green hydrogen (in compressed gas and liquified form) within a 50-km radius cluster in Kochi. It focusses on the transport use-case in the first phase, aligning with the state government’s plans for zero-emission transport, to power Hydrogen-ICE retrofitted bus fleets of 60 buses and build the required infrastructure. In the second phase, industrial demand for green hydrogen from refineries, fertilizer and chemical plants is expected to drive capacity expansion and scale-up the KGH2 hub.

Jill Evanko, Chief Executive and President, Chart Industries (NYSE: GTLS), and founding member, India Hydrogen Alliance (IH2A), said, “The KGH2 Hub plan is a blueprint of how India can build large-scale, commercial green hydrogen infrastructure. Starting with the right scale of project development is important. It indicates India’s seriousness in building a domestic green hydrogen economy and its role in shaping the emerging global green hydrogen market.”

Dr. K A Abraham, Chief Principal Secretary to the Chief Minister, Government of Kerala, said, “Green Hydrogen is part of Kerala’s Net Zero Pathway. We are actively collaborating with industry and investors to replicate the hydrogen valleys in Europe, in Kerala. The proposed Kochi Green Hydrogen Hub is significant for its scale and its focus on building hydrogen infrastructure.”

K R Jyothilal, Principal Secretary (Power and General Administration), Government of Kerala, said, “The Kochi Green Hydrogen Hub is the first of its kind in the country, in its current form and scale. Kerela intends to lead
on project development and show the path forward on green hydrogen commercialisation in India. We are actively collaborating with industry to achieve this, and our partnership with IH2A is part of this endeavor.”

A spokesperson for Reliance Industries Limited, member, India Hydrogen Alliance (IH2A), said, “Building hydrogen storage and transmission infrastructure is the first step. The KGH2 Hub plan shows the pathway for large scale project development. We support such initiatives and look forward to collaborating with players across the hydrogen value chain.”

Industry body seeks USD 360 mn public finance support for first-generation hydrogen projects over 3-years

25/25 National Green Hydrogen Hub Development Plan framework asks for National Hydrogen Development Corporation (NDHC), Public-Private H2 Advisory taskforce to accelerate hydrogen project development

NEW DELHI/ MUMBAI, JUNE 30, 2022: Industry body India Hydrogen Alliance (IH2A) has proposed a 25/25 National Green Hydrogen Hub Development Plan for creation of 25 National Green Hydrogen Projects and Five National H2 Hubs by 2025. The plan seeks to develop first-generation green hydrogen projects, with public finance support of USD 360 million over next three years; create a National Hydrogen Development Corporation and public-private hydrogen taskforce. The 25/25 Green Hydrogen Hub Development Plan was submitted today by IH2A to NITI Aayog and Ministry of New and Renewable Energy, Government of India.

IH2A’s 25/25 National Green Hydrogen Hub Development Plan focusses on create scalable green hydrogen projects and hubs that can grow to gigawatt-scale projects in three years. The plan recommendations are:

1. India should build at least 25 scalable green hydrogen projects, aggregating to 150 MW installed electrolyser capacity by 2025, designated first-generation ‘national green hydrogen projects’ – 12 industrial de-carbonisation projects in chemicals, refinery, steel industries; three heavy-duty transport projects, three H2-blending in CGD projects and seven distributed waste-to-H2 municipal projects
2. Five National Green Hydrogen Hubs in Gujarat, Karnataka, Maharashtra, Kerala and Andhra Pradesh; clustering the 25 Green Hydrogen projects, where multi-sectoral demand for green hydrogen can be produced and used, without building expensive new infrastructure in next three years. This includes:
   • Ankleshwar-Vadodara in Gujarat as National Green Chemicals and AmmoniaFertilizer Hub with 40 MW electrolyser plant, producing 8000 tonnes Green H2 per annum for chemical and fertilizer units; to reduce 8 Mmt of CO2 in the hub within a decade.
   • Bellary-Nellore (Karnataka-Andhra Pradesh) as National Green Steel and Chemicals Corridor with 30 MW electrolyser plant, producing 5000 tonnes Green H2 per annum for steel and chemical plants in the corridor, to reduce 5 Mmt of CO2 within a decade.
   • Pune-Mumbai (Maharashtra) as National Green Steel and Transport Hub with 30 MW electrolyser capacity plant, producing 5000 tonnes Green H2 per annum, to reduce 5 Mmt of CO2 within a decade.
   • Kochi (Kerala) as National Green Refinery and Transport Hub with a 30 MW electrolyser capacity plant, producing 5000 tonnes Green H2 per annum, to reduce 5 Mmt of CO2 within a decade.
3. Public finance support of USD 360 million over next three years from Government of India for capital expenditure on electrolysers, balance-of-plant (BoP) equipment; and a green hydrogen price support of USD 2 per kg of H2 in first-generation green hydrogen projects. Public funding is important for inducing early-stage green hydrogen demand and supporting first-generation projects that create public project development experience which can be applied to the next generation of scaled-up projects, after 2025.
4. Formation of Green Hydrogen Project Development Consortia by Industry Champions, in partnership with State Governments and preparation of State Green Hydrogen Policies to create the Green Hydrogen Hubs.

Speaking on the 25/25 National Green Hydrogen Hub Development Plan, Jill Evanko, Chief Executive and President, Chart Industries (NYSE: GTLS), and founding member, IH2A, said, “This is a blueprint of how the green hydrogen economy can be developed over the next three years in India. The estimated USD 360 mn public finance support in project development will help India quickly commercialize green hydrogen projects at scale in the region.  Government support for hydrogen project development contributes to further investment from both global green climate investors and the private sector.”

Speaking on key challenges in the short term, Sh. Sanjay Mashruwala, Reliance, and IH2A member, said, “The next few years will be critical for rapidly developing expertise and developing end to end green hydrogen ecosystem. While individual industrial groups can execute some aspects of green hydrogen projects at scale, developing a national hydrogen end-to-end ecosystem – from renewable power, electrolysis, storage, logistics, and consumption will require collaboration across the industry as well as in the form of stronger public-private partnerships. The 25/25 Green H2 Hub Development Plan lays out a roadmap for this to be achieved.”

Elaborating on identified national hubs in the 25/25 plan, Prabodha Acharya, Chief Sustainability Officer, JSW Group and IH2A member, said, “The 25/25 Plan shows a pathway for India to leverage green hydrogen for industrial decarbonisation in hard-to-abate sectors. Industrial majors must collaborate and co-build the green hydrogen economy through national hubs, as has been demonstrated in the plan. This goes beyond individual actions for green hydrogen commercialisation and longer-term net-zero action plans announced by companies. We will lead by example in the steel and cement sector, by helping build these national hubs.”

Speaking on preparation of the 25/25 Green Hydrogen Hub Development Plan, Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead, said, “The 25/25 plan addresses immediate project development priorities by providing a pathway to first 150 MW that will help India learn, improve, collaborate and build scalable GW-scale green hydrogen projects in the 2025-30 period. It benefits government and industry decision makers so that they can commercialize green hydrogen in a focussed, cost-effective manner. The proposed public spends are a fraction of what other economies are spending.”

NEW DELHI/ MUMBAI, MARCH 3, 2022: Industry body India Hydrogen Alliance (IH2A) has proposed the creation of a H2Bharat Public-Private Taskforce for a GW-scale national hydrogen hub development plan to NITI Aayog and the Ministry of New and Renewable Energy (MNRE), with the aim of identifying at least five large GW-scale Green hydrogen hubs for development in India, within next 18-months. The proposal was the result of the second workshop conducted by NITI Aayog and IH2A, to build the hydrogen economy in India, and part of a set of seven points that were deliberated during the workshop. The workshop was attended by representatives from the European Investment Bank (EIB), World Bank, OECD, GIZ, CDC and FMO; Government of India, Government of Kerala and industry players from across the hydrogen value chain.

The seven recommended steps from the NITI Aayog-IH2A workshop are:

• India should replicate the global best-practice of GW-scale Green H2 hubs with co-located Green H2 production and consumption, across different use cases, in a single regional cluster or hub, to commercialise Green hydrogen.
• The first Green H2 hubs should be designated national projects or ‘Special Projects of National Importance’ and be supported with special incentives and public funding.
• Formation of public-private consortiums for development of national green hydrogen hubs and project clusters is very important, to pool public and private resources and for de-risking early project development.
• Sovereign green bonds and global climate finance commitments can provide the necessary funding for GW-scale Green Hydrogen hubs in India. Multilateral and government agencies can play a catalysing role in early market development by part funding design and pre-feasibility studies for the national hubs.
• India needs a pipeline of national hydrogen hubs that can be evaluated before public and low-cost funding can be extended to them. Funding agencies are keen to see the synergies across the green hydrogen value-chain in project plans rather than standalone green hydrogen projects.
• Pre-feasibility studies for the first set of GW-scale green hydrogen hubs should start immediately with at least five national green hydrogen hubs identified in the next 18 months.
• Formation of a public private H2Bharat commercialisation taskforce, with a focus on green H2 hub or cluster development, with the target to conduct pre-feasibility studies for the first five GW green H2 clusters/hubs in India in the next 12 months.

Commenting on the Green Hydrogen Hub funding workshop and the H2Bharat Public-Private Taskforce proposal, Amitabh Kant, Chief Executive, NITI Aayog, said, “Our aim is to bring down the cost of green hydrogen to $2.5/kg by 2025 and $1/kg by 2030. This is possible only by increasing size and scale of hydrogen manufacturing. With rapidly falling renewable energy costs, India’s green hydrogen production cost is expected to be amongst the lowest in the world. The H2Bharat Taskforce is an interesting proposal to kick-start green hydrogen project development at large GW-scale. We welcome this voluntary initiative from the industry and look forward to collaborating on it.”

Commenting on the H2Bharat Public-Private Taskforce proposal to the Government of India, Jill Evanko, Chief Executive and President, Chart Industries, and founding member, IH2A, said, “The H2Bharat Taskforce will identify and shortlist five GW-scale national green hydrogen hubs for development in the next 12 months. It would bring together all relevant stakeholders from the government, funding agencies and the industry. IH2A will be happy to extend resources for this initiative voluntarily and work together with NITI Aayog and the Ministry of New and Renewable Energy (MNRE) for it.”

IH2A estimates that India will need investments of about USD 25 bn, from public and private sectors, to create a domestic green hydrogen supply chain with national installed electrolyser capacity of 25 GW producing 5 MT of Green Hydrogen by 2030. It has earlier stated that coordinated public-private actions will be required to develop the first generation of large-scale commercial hydrogen projects.

NEW DELHI/ MUMBAI, January 11, 2022: Industry body India Hydrogen Alliance (IH2A) has made submissions to the Government of India for budgetary support for creation of 10 National BharatH2 Clusters, a USD 1 bn Hydrogen Economy Development Fund (HEDF) and a Public-Private Hydrogen Taskforce, in the Union Budget for 2022-23. The submissions were made by IH2A to the NITI Aayog, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Commerce, Ministry of Petroleum and Natural Gas, Ministry of Steel and the Ministry of Chemicals and Fertilizers.

IH2A estimates that India will need investments of about USD 25 bn, from public and private sectors, to create a domestic hydrogen supply chain with national installed electrolyser capacity of 25 GW producing 5 MT of Green Hydrogen by 2030. It stated that coordinated public-private actions will be required to develop the first generation of large-scale commercial hydrogen projects. IH2A has also recommended creation of a nodal office for the hydrogen economy, as a specialised cell to work across all central ministries.

Commenting on the IH2A submission to the Government of India, Jill Evanko, Chief Executive and President, Chart Industries, and founding member, IH2A, said, “Funding support is critical for development of a hydrogen economy in India. A comprehensive set of policy interventions and budget incentives covering the entire hydrogen value chain are needed. Public and private funding for hydrogen should cover the entire supply chain – from production and supply-side, storage and transport as well as demand side to encourage industrial off-take in hard-to-decarbonize sectors of the economy. We have proposed a Hydrogen Economy Development Fund to be created to fund at least 10 GW-scale National H2 Projects by end 2022 bringing together consortia of industry players to create the first-generation of national hydrogen clusters.”

Added Jill Evanko, “We have also proposed a public-private Bharat H2 Taskforce that will act as the combined expert advisory group, bringing together national and global hydrogen expertise in hydrogen technology, project development, safety standards and funding, to all Indian stakeholders. The creation of the public-private Bharat H2 Taskforce is critical for meeting the national ambitions for hydrogen commercialization and developing a domestic supply chain in India.”

NEW DELHI, OCTOBER 28 2021: NITI Aayog, the Central Government think-tank, and industry body India Hydrogen Alliance (IH2A) have initiated a series of stakeholder consultations on Green Hydrogen demand in different sectors, supply chain management, low cost financing, capacity building and domestic electrolyser manufacturing.

The first consultation in this series identified key technical, economic and policy challenges that need to be addressed in meeting national ambitions. It has called out funding, hydrogen standards, electrolysers manufacturing, creation of carbon market and hydrogen clusters as immediate priorities for India. This is part of a series of consultations being organised by NITI Aayog and the industry.

The stakeholder consultation covered the importance of a visionary national target that is critical to reducing the prices of green hydrogen, with a view expressed by some stakeholders that India should target 5 MT of domestic Green Hydrogen production by 2030 serving both existing and new applications.

Further, it was observed that Government is in process of planning to provide incentives to promote domestic manufacturing of electrolysers, through the PLI scheme. Creation of a national hydrogen supply chain that includes national electrolyser capacity, creation of hydrogen-based demand in refineries, fertilizers and steel are expected to require public incentives estimated tentatively at Rs. 30,000 crores. The rest of the investment is proposed to be sourced from multiple green finance routes including global climate finance funds.

The National Green Hydrogen Mission 2021, announced by the Hon’ble Prime Minister, is an important part of India’s long-term energy sufficiency plan for ‘Atmanirbharta’ to replace energy imports with clean energy, and meet India’s decarbonisation targets.

The first consultation and discussions concluded that India has an excellent opportunity to create the world’s largest green steel capacity, and ensure 10 MT of high-margin export oriented green steel capacity by 2030. Green ammonia can decarbonize the fertilizer sector rapidly and needs to be supported for energy storage and exports. Decarbonisation is a global priority – it requires global climate funding support from developed markets.

Details of the consultation and discussion points can be requested from IH2A and NITI Aayog.

About NITI Aayog

National Institution for Transforming India, known as NITI Aayog, was formed via a resolution of the Union Cabinet on 1 January 2015. NITI Aayog is the premier policy think tank of the Government of India, providing directional and policy inputs. Apart from designing strategic and long-term policies and programmes for the Government of India, NITI Aayog also provides relevant technical advice to the Centre, States, and Union Territories.

About India H2 Alliance (IH2A)

The India H2 Alliance is an industry coalition of global and Indian companies committed to the creation of a hydrogen value-chain and economy in India. IH2A works with private sector partners, the government and the public to ensure that costs of hydrogen production are brought down, a local supply chain for hydrogen and industrial, power and transport sector demand is created. More information on IH2A and its activities, is available at www.IH2A.com