New Delhi: The India Hydrogen Alliance (IH2A) has recommended an additional allocation of $2.5 billion to the National Green Hydrogen Mission (NGHM), in addition to the $2.3 billion already allocated. The proposal aims to address slow project development and lack of offtake agreements, while accelerating the establishment of a green hydrogen economy in India.
IH2A’s submission to the government highlighted industry concerns over high green hydrogen prices deterring long-term commitments from offtake entities in sectors such as refineries, fertilizers, steel, chemicals, and heavy-duty transport. To address these challenges, IH2A has proposed demand-side incentives for industrial consumers, capital expenditure subsidies for shared hydrogen infrastructure at hydrogen hubs, and the establishment of Green Hydrogen Development Corporations (GHDCs) to facilitate large-scale project development and hydrogen hub creation.
IH2A also recommended public funding to develop five additional National Hydrogen Hubs, in collaboration with state governments and project developers. “Potential green hydrogen offtake entities are holding back due to high costs. Increasing NGHM’s allocation by $2.5 billion will help provide demand-side incentives, enabling industrial uptake and project growth, while ensuring India meets its green hydrogen ambitions and 2030 targets,” said Amrit Singh Deo, Secretariat Lead, IH2A.
