IH2A Urges Government To Boost National Green Hydrogen Mission Budget By USD 2.5 Bn
Industry coalition calls for increased support to accelerate green hydrogen development, infrastructure, and demand side incentives
The India Hydrogen Alliance (IH2A), an industry coalition of global and Indian companies committed to advancing India’s green hydrogen economy, has called on the Government of India to allocate an additional USD 2.5 billion for the National Green Hydrogen Mission (NGHM). This request comes on top of the existing USD 2.3 billion already allocated to the mission, aiming to enhance funding for demand side incentives, hydrogen infrastructure, and hub development.
In its recommendation to the government, IH2A emphasized industry concerns about slow project development and the absence of offtake agreements for green hydrogen, which are hindering the growth of the sector. To address these challenges, IH2A proposed several key initiatives:
- Demand Side Incentives: Support for offtake entities in key industrial sectors like refineries, fertilizers, steel, chemicals, and heavy-duty transport, to help offset the high cost of green hydrogen.
- Capex Subsidies: Financial assistance to project developers for the construction of shared hydrogen infrastructure at Hydrogen Hubs across India.
- Green Hydrogen Development Corporations (GHDCs): Establishment of state-backed corporations to facilitate large-scale green hydrogen projects and hub development, providing a coordinated approach to scaling up the sector.
- Expansion of Hydrogen Hubs: Public finance support for the creation of five additional National Hydrogen Hubs in collaboration with both private and state-owned project developers.
Amrit Singh Deo, Secretariat Lead at IH2A, stated, “Potential green hydrogen offtake entities are holding back on committing to long-term contracts due to the high price of green hydrogen. By increasing the NGHM budget by an additional USD 2.5 billion, we can provide essential incentives to industrial players and accelerate the development of green hydrogen projects, helping India meet its 2030 green hydrogen targets.”
With these recommendations, IH2A aims to support the rapid growth and development of India’s green hydrogen economy, positioning the country as a global leader in the renewable energy sector.
