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Boosting Green Hydrogen in India: The Rise of Hydrogen Hubs
Key Ideas
  • Hydrogen hubs in India aim to make green hydrogen projects more viable by addressing technical, logistical, and commercial challenges of transport and enhancing project viability through economies of scale.
  • The National Green Hydrogen Mission in India targets to establish the country as a global leader in green hydrogen production, usage, and export, focusing on creating green hydrogen hubs within Special Economic Zones.
  • Initiatives like the 'Scheme Guidelines for setting up Hydrogen Hubs in India' with a budget of INR 200 crore aim to establish two green hydrogen hubs by 2025-26, supporting infrastructure development and job creation.
  • Government policies and initiatives in India are rapidly evolving to support the green hydrogen sector, with a focus on providing incentives, reducing taxes, and attracting private investments in green hydrogen infrastructure.
Green hydrogen is playing a crucial role in India's shift towards sustainability and a low-carbon economy. The National Green Hydrogen Mission launched in India is driving the country to become a global leader in green hydrogen production, usage, and export. The focus of this mission is on establishing green hydrogen hubs, organized areas where production and utilization facilities are closely linked. These hubs are designed to address technical, logistical, and commercial challenges associated with long-distance hydrogen transport, making green hydrogen projects more viable and allowing for economies of scale. The cost of producing green hydrogen mainly depends on renewable energy prices, electrolyzer capital costs, and balance of plant expenses. However, storage and distribution costs can be significantly higher due to expensive infrastructure requirements. The Ministry of Ports, Shipping and Waterways in India has identified key ports like Deendayal, Paradip, and V.O. Chidambaranar to be developed as green hydrogen hubs. Significant land allocation and agreements have been made to establish green hydrogen production facilities at these locations. The government's 'Hydrogen Hubs Scheme' aims to establish two green hydrogen hubs by 2025-26, supporting essential infrastructure development and job creation. Industry experts suggest the need for longer-lasting incentives and tax relief to further boost the green hydrogen sector in India. As policies and regulations for green hydrogen continue to evolve in India, they are expected to create business opportunities and attract private investment in green hydrogen production, storage, and distribution infrastructure.
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