
India Hydrogen Alliance Pushes for $2.5 Billion Boost in National Green Hydrogen Mission
Jan 26
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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.