The India Hydrogen Alliance (IH2A) has urged the government to adopt key policy measures to meet the ambitious targets of the National Green Hydrogen Mission (NGHM) by 2030. The introduction of Hydrogen Purchase Obligations (HPOs) aimed at stabilizing demand and ensuring investment protection is central to its recommendations.
Mandatory HPOs for Refinery and Ammonia Plants
The introduction of Hydrogen Purchase Obligations (HPOs), aimed at stabilizing demand and ensuring investment protection, is central to its recommendations. These obligations aim to help India achieve its target of producing 1.5 million tonnes of green hydrogen under the NGHM framework.
Amrit Singh Deo, who leads the IH2A Secretariat, stressed that mandatory HPOs are crucial for ensuring industrial hydrogen offtake and minimizing the risk of stranded assets. “Without these purchase obligations, the $80 billion investment pipeline in India’s hydrogen sector could be jeopardized,” he warned.
Demand Aggregation and Financial Support Mechanisms
To further facilitate the transition, IH2A recommends developing a common roadmap for refineries and ammonia producers to collectively aggregate hydrogen demand. This coordinated strategy would help streamline procurement and usage across the sector.
In addition, IH2A has suggested the creation of a $2 billion Contract for Difference (CfD) framework to provide price stability for green hydrogen projects and incentivize early adoption.
Balancing Existing and New Capacity
IH2A’s roadmap envisions that existing industrial plants will meet 45% of the NGHM target, while new facilities will contribute 55%. The alliance argues that this balanced approach will ensure a smooth transition without overwhelming current infrastructure.
A Pathway to Energy Security and Decarbonisation
The IH2A’s holistic proposal not only aims to safeguard India’s multibillion-dollar investments but also to catalyze the growth of a green hydrogen economy. As reported by advanceh2.com, if implemented, these measures could position India as a global leader in clean hydrogen. They could also strengthen India’s long-term energy security and decarbonisation efforts.
