India Hydrogen Alliance Proposes Hydrogen Purchase Obligations to Safeguard $80 Billion Investment
Key Ideas
  • The India Hydrogen Alliance (IH2A) has recommended Hydrogen Purchase Obligations (HPOs) to meet the National Green Hydrogen Mission (NGHM) 2030 targets.
  • IH2A suggests a 10% HPO for existing refinery and ammonia plants and a 100% HPO for new plants by 2030 to achieve a target of 1.5 million tonnes of green hydrogen.
  • The proposal aims to safeguard $80 billion of hydrogen investments by ensuring a steady demand for green hydrogen and preventing projects from becoming stranded assets.
  • IH2A also suggests a common roadmap for refineries and ammonia plants to aggregate demand and proposes a $2 billion budget allocation for a CfD framework to support the transition.
The India Hydrogen Alliance (IH2A) has proposed a set of measures to the Government of India to meet the National Green Hydrogen Mission (NGHM) 2030 targets. Key among these measures is the recommendation for the introduction of Hydrogen Purchase Obligations (HPOs) for existing refinery and ammonia plants. IH2A has suggested a 10% HPO for existing plants and a 100% HPO for new plants by 2030 to help achieve the NGHM target of 1.5 million tonnes of green hydrogen. IH2A emphasizes that these HPOs will ensure a steady demand for green hydrogen, protecting India's $80 billion hydrogen investment plans from risks. Amrit Singh Deo, the IH2A Secretariat lead, highlighted the importance of HPOs in stimulating domestic demand in the energy industry. He emphasized the need for mandatory Hydrogen Purchase Obligations to encourage industrial domestic hydrogen offtake. Without such obligations, IH2A warns that hydrogen projects could face the risk of becoming stranded assets, jeopardizing the substantial investment pipeline in the hydrogen sector. To facilitate a smooth transition and meet the NGHM targets, IH2A also proposes a common roadmap for refineries and ammonia plants to aggregate demand. Additionally, a potential $2 billion budget allocation for a Contract for Difference (CfD) framework is suggested to support the transition. The overall goal is to derive 45% of the target from existing plants and the remaining 55% from new plants by 2030. This holistic approach aims to not only safeguard investments but also to drive the growth of green hydrogen in India's energy landscape.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2025 AdvanceH2, LLC. All rights reserved.