Global Trends
Hydrogen Valley or hubs are a multi-sectoral and multi-disciplinary approach toward hydrogen commercialisation, popularised by the decarbonizing of industrial clusters in Europe. By end 2020, there were 31 Hydrogen Valley projects or large-scale demonstration scale projects around the world, attracting combined investment in excess of USD 30 Bn. The significant funding support is helping accelerate hydrogen commercialisation through project consortia structures, fiscal and non-fiscal incentives for large demonstration projects (see link below for more information on global hydrogen valleys). The Hydrogen Valleys Project in Europe is supported collaboratively by the European Commission, the industry as well as the Mission Innovation government-to-government (G2G) ministerial group.
The recently launched global FiveT Hydrogen Fund (in which Chart Industries a member) in Europe is expected to grow to become a USD 1 Bn investment fund that will invest across the hydrogen value chain, including hydrogen valley projects.
Key Reading
IH2A Position
IH2A’s view is that India should identify and scope at least 10 national Hydrogen Valleys or Hydrogen Hubs – large-scale demonstration stage projects that helps build a domestic hydrogen supply, with participation from industry consortia and special incentives (as well as off-take guarantees) by the government. This approach towards hydrogen commercialisation is supported by Mission Innovation (a global G2G initiative that India is part of) and provides a global template for project funding, risk management and collaboration between public and private participants.

IH2A’s recommendation is that India should initiate pre-feasibility studies for at least ten national Bharat H2 Valleys or Hydrogen Hubs, and invite industry players to participate. By building the hydrogen value chain in an industrial cluster, hydrogen infrastructure requirements are localised. This approach acknowledges the high cost of hydrogen infrastructure and recognizes the inter-linkages between renewable energy producers and industrial offtakers. The government should play an active role as H2 off-taker in these national projects.
Additionally, IH2A’s view is that India will be unable to transition from POC to large-scale demonstration projects unless it is supported by dedicated project funding. IH2A recommends creation of a national Hydrogen-themed Energy Transition Fund, with co-funding partnerships with sovereigns, multi-lateral agencies, and clean energy funds. The ambition should be to create an investible pool of at least USD 1 Bn by 2030 (starting with USD 500 Mn in 2023-25), through this fund, with deployments directed towards national hydrogen projects of a certain scale, supported by fiscal and non-fiscal incentives and available to large project consortiums who invest in building hydrogen supply chains in India. Other funding mechanism could include debt structures and project financing models by multi-lateral lending agencies.
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Hydrogen At Scale: Hydrogen Valleys, Funding and Policy Design
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Hydrogen At Scale: Hydrogen Valleys, Funding and Policy Design