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India Hydrogen Alliance Pushes for $2.5 Billion Boost in National Green Hydrogen Mission

Jan 26

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India Hydrogen Alliance Pushes for $2.5 Billion Boost in National Green Hydrogen Mission

The India Hydrogen Alliance (IH2A) has called on the Indian government to allocate an additional $2.5 billion for the National Green Hydrogen Mission (NGHM) in the upcoming budget. This funding is critical to accelerate demand-side incentives, infrastructure expansion, and the development of hydrogen hubs across the country.


IH2A's Proposal to Drive Green Hydrogen Growth

IH2A has recommended supplementing the current $2.3 billion allocated to NGHM with the proposed $2.5 billion. This additional funding aims to address key hurdles such as slow project implementation and the lack of long-term green hydrogen offtake agreements.


To bolster the green hydrogen ecosystem, IH2A outlined specific measures, including:


  • Introducing demand-side incentives to stimulate consumption.

  • Providing capital expenditure subsidies to reduce upfront costs.

  • Establishing Green Hydrogen Development Corporations (GHDCs) to drive innovation.

  • Developing five additional national hydrogen hubs to foster regional growth.


A Vision for India’s Hydrogen Economy

Jillian Evanko, President and CEO of Chart Industries and a Founding Member of IH2A, emphasized the importance of public funding to build a robust hydrogen value chain domestically. She suggested that a $5 billion India Hydrogen Transition Fund would bring India closer to the EU's public funding levels for hydrogen development. Evanko highlighted five critical priorities for 2024:


  • Expanding hydrogen hubs.

  • Accelerating decarbonization in key sectors like steel and chemicals.

  • Establishing a comprehensive hydrogen infrastructure.

  • Boosting domestic manufacturing of hydrogen equipment.

  • Promoting skill development to support the green hydrogen workforce.


Funding Strategy for a Greener Future

Amrit Singh Deo, Secretariat Lead of IH2A, proposed a multi-pronged funding approach for the National Hydrogen Transition and Development Fund. This $5 billion fund could be sourced from:


  • Multilateral funding agencies.

  • Government energy transition allocations.

  • Resources from the Ministry of Petroleum and Natural Gas.

  • Sovereign green bonds.


Deo emphasized that this strategy would catalyze the development of India’s hydrogen economy, ensuring the country meets its 2030 sustainability targets.


India’s Path Toward a Hydrogen-Powered Future

IH2A’s initiative underscores the urgency of accelerating green hydrogen projects to help India achieve its net-zero goals while strengthening its position as a global leader in renewable energy. With enhanced funding, the alliance believes India can establish a self-reliant hydrogen value chain, reduce production costs, and create a cleaner, greener future for generations to come.

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