Deesha Power releases White Paper on “Financing Strategies to Achieve GH2 Competitiveness”

Deesha Power releases White Paper on “Financing Strategies to Achieve GH2 Competitiveness”

The paper covers review global financing programs & learnings for India, Unique funding opportunity, strategies for accelerating competitive GH2 and road map for GH2 @ $ 1/KG

  • By ICN Bureau | June 04, 2023

Deesha Power, a leading provider of GH2 led net zero solutions, has published its second white paper on green hydrogen titled “Financing Strategies to Achieve GH2 Competitiveness ($ 1/KG)”, as knowledge and strategic partner for the recently concluded GH2 Conclave 2023. The report was released by Nitin Gadkari, Minister of Road Transport & Highways, Government of India.

This white paper serves as a definitive guide to understanding the financing strategies for competitive green hydrogen and a systematic roadmap towards it competitiveness. As the world seeks to transition away from fossil fuels and reduce greenhouse gas emissions, green hydrogen has emerged as a key solution in the decarbonization of industries, transportation, and energy systems.

Gadkari spoke on green hydrogen’s importance in India’s energy landscape as the fuel for mobility in India. He stressed upon four pronged recipe of a bankable green hydrogen viz proven technology, economic viability, RM availability and competitive pricing.

While he touched upon electrolytic hydrogen for India, he was very much hopeful of biomass based green hydrogen for India for two reasons. Firstly, it could be decentralised and second, it could create lot of employment at grass root level. He opined that through biomass based GH2, farmer can become “urjadata” while continued to be an “annadata”

* India’s Unique GH2 Funding Opportunity: After the release of National Hydrogen Mission, lot many opportunities have opened up. White paper presents hydrogen ecosystem to support vision of 5 MMTPA by 2030 and unique financing opportunity for global investors and lenders therein

Views of the Industry Stalwarts: Deesha Power did extensive stakeholder consultation across GH2 value chain and reached out to 20+ C level executives through a structured questionnaire. This section provides highlights of such primary interactions.

Strategies to Accelerate GH2 Financing: White paper presents five-pronged strategy to accelerate GH2 financing. Among others, it deliberates need of equity investment vehicles, dedicated GH2 bank, need to promote frugal innovation

Roadmap for GH2 @ $ 1/KG: For a cost sensitive market like India, competitive GH2 is must. White paper deliberates key assumptions for present GH2 pricing, various levers for reducing cost of GH2 and its systematic roadmap till 2030.

Manish Panchal, Conference Chair to the GH2 Conclave and Chief Mentor to Deesha Power, said, “GH2 will be potential largest opportunity for India to achieve its Energy Security while we also achieve our Net Zero Targets in line with Global commitments. The regulatory support GH2 Mission would require is like the one given to Solar Mission. With the proactive involvement of Industry captains, I believe commitment made by our Hon. Prime Minister Shri Narendra Modi, to make India a Global Hub of GH2 will get fulfilled.”.

Shardul Kulkarni, MD & CEO Deesha Power added “NHM infra requirement result into an unique investment opportunity of $ 200 B. Around 65% of this investment would go into creation of RE capacity, ~15% go for H2 generating assets viz electrolyzer. The market competitive GH2 pricing scenario is envisaged at $ 1/KG, indicating 84% reduction in present LCOH. Given the fact that solar witnessed downward journey of ~85% in its pricing, we believe that such steep reduction to desired LCOH is possible if techno-commercial/regulatory aspects pan out in right direction.”

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