Industry body India Hydrogen Alliance (IH2A) has proposed public finance support of US $360 million over the next three years for creation of 25 National Green Hydrogen Projects and creating a National Hydrogen Development Corporation.

IH2A is planning a 25/25 National Green Hydrogen hub development plan for creation of 25 National Green Hydrogen projects and five national H2 hubs by 2025.

The 25/25 Green Hydrogen Hub Development Plan was submitted by IH2A to NITI Aayog and the Ministry of New and Renewable Energy, Government of India.

IH2A is focusing on creating scalable green hydrogen projects and hubs that can grow to gigawatt-scale projects in three years.

As per plan, India should build at least 25 scalable green hydrogen projects, aggregating to 150 MW installed electrolyser capacity by 2025, designated first-generation ‘national green hydrogen projects’ – 12 industrial decarbonisation projects in chemicals, refinery, steel industries; three heavy-duty transport projects, three H2-blending in CGD projects and seven distributed waste-to-H2 municipal projects.

Five National Green Hydrogen hubs in Gujarat, Karnataka, Maharashtra, Kerala and Andhra Pradesh; clustering the 25 Green Hydrogen projects where multi-sectoral demand for green hydrogen can be produced and used, without building expensive new infrastructure in the next three years.

Public finance support of US $360 million over next three years from Government of India for capital expenditure on electrolysers, balance-of-plant (BoP) equipment; and a green hydrogen price support of US $2 per kg of H2 in first-generation green hydrogen projects. Public funding is important for inducing early-stage green hydrogen demand and supporting first-generation projects that create public project development experience which can be applied to the next generation of scaled-up projects, after 2025.

Speaking on the 25/25 National Green Hydrogen Hub Development Plan, Jill Evanko, Chief Executive and President, Chart Industries and founding member, IH2A said, “This is a blueprint of how the green hydrogen economy can be developed over the next three years in India. The estimated US $ 360 million public finance support in project development will help India quickly commercialize green hydrogen projects at scale in the region. Government support for hydrogen project development contributes to further investment from both global green climate investors and the private sector.”

Speaking on key challenges in the short term, Sanjay Mashruwala, President, Reliance, and IH2A member said, “The next few years will be critical for rapidly developing expertise and developing end to end green hydrogen ecosystem. While individual industrial groups can execute some aspects of green hydrogen projects at scale, developing a national hydrogen end-to-end ecosystem – from renewable power, electrolysis, storage, logistics, and consumption will require collaboration across the industry as well as in the form of stronger public-private partnerships. The 25/25 Green H2 Hub Development Plan lays out a roadmap for this to be achieved.”

Elaborating on identified national hubs in the 25/25 plan, Prabodha Acharya, Chief Sustainability Officer, JSW Group and IH2A member said, “The 25/25 Plan shows a pathway for India to leverage green hydrogen for industrial decarbonisation in hard-to-abate sectors. Industrial majors must collaborate and co-build the green hydrogen economy through national hubs, as has been demonstrated in the plan. This goes beyond individual actions for green hydrogen commercialisation and longer-term net-zero action plans announced by companies. We will lead by example in the steel and cement sector, by helping build these national hubs.”

Speaking on preparation of the 25/25 Green Hydrogen Hub Development Plan, Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead said, “The 25/25 plan addresses immediate project development priorities by providing a pathway to first 150 MW that will help India learn, improve, collaborate, and build scalable GW-scale green hydrogen projects in the 2025-30 period. It benefits government and industry decision makers so that they can commercialize green hydrogen in a focussed, cost-effective manner. The proposed public spending is a fraction of what other economies are spending.”