India Hydrogen Alliance Calls for Policy Measures to Drive Green Hydrogen Adoption
Key Ideas
  • The India Hydrogen Alliance recommends the implementation of Hydrogen Purchase Obligations (HPOs) to stabilize demand and ensure investment protection, crucial for achieving the National Green Hydrogen Mission targets by 2030.
  • IH2A proposes a strategy of demand aggregation and financial support mechanisms, including a $2 billion Contract for Difference (CfD) framework, to facilitate the transition to green hydrogen and incentivize early adoption.
  • The alliance suggests a balanced approach where existing industrial plants contribute 45% and new facilities 55% towards the NGHM target, aiming for a smooth transition without overwhelming current infrastructure.
  • If IH2A's recommendations are implemented, India could become a global leader in clean hydrogen, strengthening its energy security, decarbonisation efforts, and catalyzing the growth of a green hydrogen economy.
The India Hydrogen Alliance (IH2A) has urged the government to adopt key policy measures to meet the National Green Hydrogen Mission (NGHM) targets by 2030. Central to their recommendations is the introduction of Hydrogen Purchase Obligations (HPOs) to stabilize demand and ensure investment protection. IH2A stresses the importance of mandatory HPOs for industrial hydrogen offtake, warning that without them, India's $80 billion hydrogen sector investment pipeline could be at risk. The alliance also suggests strategies for demand aggregation among refineries and ammonia producers and proposes a $2 billion Contract for Difference (CfD) framework to provide price stability and incentivize green hydrogen projects. IH2A envisions a balanced approach where existing plants contribute 45% and new facilities 55% towards the NGHM target, aiming for a smooth transition. By implementing these measures, IH2A believes India could become a global leader in clean hydrogen, enhancing energy security, decarbonisation efforts, and fostering the growth of a green hydrogen economy.
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