The India Hydrogen Alliance (IH2A) has presented a proposal to enhance financial backing for the National Green Hydrogen Mission (NGHM). The proposal, submitted to the Ministry of France and the Government of India, outlines the establishment of a $5 billion national hydrogen transition and development fund.
The fund aims to support expansive hydrogen projects, hub development, and hydrogen supply chains, extending beyond electrolyser manufacturing. Drawing inspiration from the EU green hydrogen fund, IH2A has identified key areas for the suggested fund’s allocation:
*Collaborative development of a minimum of five national hydrogen hubs (in addition to the two hubs already planned in the existing NGHM), involving both state governments and project developers. This includes incentives tied to off-take agreements for anchor industrial offtake entities and contracts-for-difference (CfD) funding.
*Provision of capital expenditure (CAPEX) support for establishing greenfield hydrogen infrastructure, encompassing pipelines and storage facilities.
*Assistance for governments in establishing clusters for domestic manufacturing of hydrogen equipment and supply chain components, specifically for balance of plant (BoP) equipment.
*Backing for sectoral hydrogen transition plans, offering CAPEX incentives and off-take incentives. The support is focused on the steel and chemicals sectors, aligning with the SIGHT Mode two guidelines for the fertiliser and refinery sectors.
* Implementation of a national hydrogen transition skilling programme, with the aim of cultivating more professionals in hydrogen engineering design and services. This program involves collaboration with colleges and research institutions.
As reported by H2 View, the IH2A’s proposal envisions the creation of a robust financial mechanism to foster the development and transition of hydrogen-related projects in India, echoing successful models employed globally.
