Industry body India Hydrogen Alliance (IH2A) has made submissions to the Government of India for budgetary support for creation of 10 National BharatH2 Clusters, a USD 1 bn Hydrogen Economy Development Fund (HEDF) and a Public-Private Hydrogen Taskforce, in the Union Budget for 2022-23.
The submissions were made by IH2A to the NITI Aayog, Ministry of New and Renewable Energy, Ministry of Finance, Ministry of Commerce, Ministry of Petroleum and Natural Gas, Ministry of Steel and the Ministry of Chemicals and Fertilizers.
IH2A estimates that India will need investments of about USD 25 bn, from public and private sectors, to create a domestic hydrogen supply chain with national installed electrolyser capacity of 25 GW producing 5 MT of Green Hydrogen by 2030.
It stated that coordinated public-private actions will be required to develop the first generation of large-scale commercial hydrogen projects. IH2A has also recommended creation of a nodal office for the hydrogen economy, as a specialised cell to work across all central ministries.
Jill Evanko, Chief Executive and President, Chart Industries, and founding member, IH2A, said:
Funding support is critical for development of a hydrogen economy in India.
“A comprehensive set of policy interventions and budget incentives covering the entire hydrogen value chain are needed. Public and private funding for hydrogen should cover the entire supply chain – from production and supply-side, storage and transport as well as demand side to encourage industrial off-take in hard-to-decarbonize sectors of the economy.”
“We have proposed a Hydrogen Economy Development Fund to be created to fund at least 10 GW-scale National H2 Projects by end 2022 bringing together consortia of industry players to create the first-generation of national hydrogen clusters.”
Added Jill Evanko, “We have also proposed a public-private Bharat H2 Taskforce that will act as the combined expert advisory group, bringing together national and global hydrogen expertise in hydrogen technology, project development, safety standards and funding, to all Indian stakeholders.”
“The creation of the public-private Bharat H2 Taskforce is critical for meeting the national ambitions for hydrogen commercialization and developing a domestic supply chain in India.”
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Media Release: IH2A seeks Union Budget support for India’s hydrogen economy, NEW DELHI/ MUMBAI, January 11, 2022
