Indian Hydrogen Manufacturers Push for Hydrogen Purchase Obligations to Safeguard Future Investments
Key Ideas
- Indian hydrogen manufacturers are urging the government to implement Hydrogen Purchase Obligations (HPOs) and demand-side support to avoid the risk of planned hydrogen projects becoming stranded assets.
- The India Hydrogen Alliance (IH2A) is seeking a 10% HPO for existing plants and 100% HPO for new plants by 2030, aiming to achieve the National Green Hydrogen Mission (NGHM) 2030 target of 1.5 million tonnes of green hydrogen for domestic use.
- With the current electrolyser base in India producing less than 1% of the NGHM 2030 target, IH2A highlights the importance of HPOs and adequate demand creation to prevent potential investments worth $80 billion from being at risk.
- IH2A proposes HPOs to transition from grey to green hydrogen in the Refinery and Ammonia sectors across 47 existing and proposed plants in India, emphasizing the need for a strategic shift towards sustainability.
Indian hydrogen manufacturers are advocating for the implementation of Hydrogen Purchase Obligations (HPOs) and demand-side support from the government to safeguard their investments in the sector. The India Hydrogen Alliance (IH2A) has specifically requested a 10% HPO for existing plants and a 100% HPO for new plants by 2030, aligning with the National Green Hydrogen Mission (NGHM) 2030 target of 1.5 million tonnes of green hydrogen for domestic use. The IH2A emphasized that without HPOs and adequate demand creation, the NGHM 2030 targets and investments totaling $80 billion in the hydrogen sector could be at risk. Currently, India's electrolyser base produces less than 1% of the targeted green hydrogen, indicating the need for policy interventions. IH2A's proposal includes replacing grey hydrogen with green hydrogen through HPOs in the Refinery and Ammonia sectors, covering 47 existing and proposed plants. This strategic shift aims to promote environmental sustainability and support the growth of the hydrogen industry in India.
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