India's Ambitious Green Hydrogen Plan: IH2A Proposes Mandating Hydrogen Purchase Obligations for Refineries and Ammonia Plants by 2030
Key Ideas
- The India Hydrogen Alliance (IH2A) suggests a 10% hydrogen purchase obligation for existing refineries and ammonia plants and a 100% obligation for new plants by 2030.
- These obligations are crucial for achieving the National Green Hydrogen Mission (NGHM) target of 1.5 million tonnes of green hydrogen for domestic use by 2030.
- IH2A estimates that implementing these purchase obligations could lead to investments exceeding $80 billion in India's hydrogen sector.
- The alliance proposes a Japan Contract-for-Difference framework to financially support the transition to green hydrogen and reduce carbon emissions in the refinery and ammonia sectors.
The India Hydrogen Alliance (IH2A) has proposed a significant initiative to the Government of India, recommending the implementation of hydrogen purchase obligations (HPOs) for refineries and ammonia plants. The plan involves a 10% HPO for existing facilities and a 100% HPO for new plants by 2030. The aim is to fulfill the National Green Hydrogen Mission's target of 1.5 million tonnes of green hydrogen for domestic use by 2030. IH2A emphasizes the necessity of HPOs to meet these targets and safeguard substantial investments in India's hydrogen sector, surpassing $80 billion. Currently, India's green hydrogen production capacity falls short of the 2030 target, prompting IH2A to advocate for HPOs to transition from grey to green hydrogen across various industrial sectors. The proposal outlines specific targets for existing and new projects, stressing the importance of aggregating demand and procuring green hydrogen. IH2A also suggests a funding mechanism akin to Japan's Contract-for-Difference framework to support the transition and reduce carbon emissions. The estimated cost for this initiative stands at $2 billion, aimed at facilitating the adoption of HPOs by existing and new plants by 2030.
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