The India Hydrogen Alliance (IH2A) has presented a request to the Ministry of Finance, Government of India, seeking an augmentation in budgetary assistance for the National Green Hydrogen Mission (NGHM) and the establishment of a National Hydrogen Transition and Development Fund with a budget of $5 billion. The National Hydrogen Transition and Development Fund, amounting to $5 billion and modeled after the EU Green Hydrogen Fund, proposes to provide backing for extensive hydrogen initiatives, the development of hydrogen hubs, hydrogen supply chains extending beyond electrolyser production, sector-specific plans for transitioning to hydrogen, skill development, and the establishment of hydrogen infrastructure within the nation. IH2A’s suggested funding mechanism for the National Hydrogen Transition is reminiscent of the EU Green Hydrogen Fund, which backs nationally significant green hydrogen projects and hydrogen hubs.
IH2A has suggested that the envisioned National Hydrogen Transition and Development Fund should facilitate the collaborative development of a minimum of five additional National hydrogen Hubs, in addition to the two already planned in the current NGHM. This collaboration would involve state governments and project developers, both from private and state-owned sectors. The fund is also proposed to provide offtake linked incentives to anchor industrial offtake entities and support contracts-for-difference funding.
The proposed fund aims to offer capital expenditure (CAPEX) assistance for greenfield hydrogen infrastructure, including hydrogen pipelines and storage facilities. This support will reduce the overall cost of supplying green hydrogen to end-users. Furthermore, other recommendations included helping state governments for the establishment of clusters dedicated to manufacturing domestic hydrogen and supply chain equipment. This includes equipment related to balance-of-plant operations, going beyond electrolysers. The fund should additionally back a sector-specific hydrogen transition strategy, offering CAPEX and offtake incentives, particularly for the steel and chemicals sectors, aligning with the strategic intervention for green hydrogen transition mode 2 guidelines applicable to the fertiliser and refinery sectors. Furthermore, the alliance recommended that the fund should endorse the establishment of a national hydrogen transition skilling program aimed at generating a greater number of professionals specialising in hydrogen engineering design and engineering services. This collaboration would involve working closely with engineering colleges and research institutions.
