India's IH2A Initiative Proposes Hydrogen Purchase Obligations for Green Transition
Key Ideas
- India Hydrogen Alliance introduces a Hydrogen Purchase Obligations framework to shift from grey to green hydrogen, targeting ammonia and refinery industries.
- The proposal includes a Contract-for-Difference system inspired by Japan, aiming to secure over $80 billion in public investment for the hydrogen transition.
- IH2A envisions allocating $2 billion under this model to help existing plants meet a 10% Hydrogen Purchase Obligation and new plants to transition to 100% green hydrogen by 2030.
- This initiative is seen as a significant step towards accelerating India's decarbonisation goals, specifically in hard-to-abate sectors like refineries and ammonia production.
The India Hydrogen Alliance (IH2A) has introduced a framework known as Hydrogen Purchase Obligations (HPOs) to expedite the shift from grey to green hydrogen in the country. The focus of this proposal is on the ammonia and refinery industries, which play crucial roles in India's energy landscape. By implementing a Contract-for-Difference (CfD) system similar to Japan's, IH2A aims to prevent the potential loss of over $80 billion in public investments earmarked for hydrogen. The IH2A Secretariat highlighted that once HPOs are in place, India can emulate Japan's CfD framework to support the transition to green hydrogen in the refinery and ammonia sectors, ultimately reducing carbon emissions. The initiative projects that allocating $2 billion through the CfD model would enable existing plants to fulfill a 10% Hydrogen Purchase Obligation target while pushing new plants to adopt 100% green hydrogen by 2030. Such a strategy is poised to significantly boost India's decarbonisation efforts, particularly in challenging-to-decarbonise sectors such as refineries and fertiliser plants.
Topics
Green Hydrogen
Sustainability
Investment
Energy Transition
Decarbonisation
Industry Impact
Policy Framework
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