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IH2A’s green hydrogen hub plan for India

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IH2A’s 25/25 National Green Hydrogen Hub Development Plan focuses on the creation of scalable green hydrogen projects and hubs that can expand to gigawatt-scale projects within three years.

The plan’s suggestions are:

1) India should construct at least 25 scalable green hydrogen projects with a total installed electrolyser capacity of 150 MW by 2025. These projects should be designated as first-generation ‘national green hydrogen projects’ – 12 industrial de-carbonisation projects in the chemicals, refining, and steel industries; three heavy-duty transport projects, three H2-blending in CGD projects, and seven distributed waste-to-H2 municipal projects.

2) Five National Green Hydrogen Hubs in Gujarat, Karnataka, Maharashtra, Kerala, and Andhra Pradesh; clustering the 25 Green Hydrogen projects, where multi-sectoral demand for green hydrogen may be produced and utilised, without constructing costly new infrastructure in the next three years. This consists of:

a) Ankleshwar-Vadodara in Gujarat as the National Green Chemicals and Ammonia Fertilizer Hub with a 40 MW electrolyser plant producing 8,000 tonnes of Green H2 annually for chemical and fertilizer industries; to eliminate 8 Mmt of CO2 in the hub within a decade.

b) Bellary-Nellore (Karnataka-Andhra Pradesh) as National Green Steel and Chemicals Corridor with 30 MW electrolyser plant, producing 5,000 tonnes of Green H2 annually for steel and chemical companies in the corridor, to reduce 5 Mmt of CO2 within a decade.

c) Pune-Mumbai (Maharashtra) as National Green Steel and Transport Hub with 30 MW electrolyser capacity plant, producing 5,000 tonnes of Green H2 annually, to reduce 5 Mmt of CO2 in a decade.

d) Kochi (Kerala) as National Green Refinery and Transport Hub with a 30 MW electrolyser capacity plant, producing 5,000 tonnes of Green H2 annually, in order to eliminate 5 Mmt of CO2 within a decade.

e) Vishakhapatnam (Andhra Pradesh) as National Green Refinery and Transport Hub with a 20 MW electrolyser plant, producing 4,000 tonnes of Green H2 per year, to eliminate 4 Mmt of CO2 within a decade.

Subvention and Industry Assistance

3) A public finance assistance of USD 360 million over the next three years from the Government of India for capital expenditure on electrolysers and balance-of-plant (BoP) equipment; and a USD 2 per kg of H2 green hydrogen price support for first-generation green hydrogen projects. Public funding is essential for stimulating early-stage demand for green hydrogen and supporting first-generation projects that generate public project development expertise that can be applied to the next generation of scaled-up projects after 2025.

4) The formation of Green Hydrogen Project Development Consortiums by Industry Champions in collaboration with State Governments and the development of State Green Hydrogen Policies in order to establish Green Hydrogen Hubs.
Jill Evanko, chief executive officer and president of Chart Industries, and founding member of IH2A, commented on the 25/25 National Green Hydrogen Hub Development Plan, stating, “This is a blueprint for the development of the green hydrogen economy in India over the next three years. The expected USD 360 million in public funding for project development will assist India in rapidly commercializing large-scale green hydrogen projects in the region. Government assistance for the development of hydrogen projects encourages additional investment from global green climate investors and the private sector.”

Sanjay Mashruwala, a member of Reliance and the IH2A, stated, “The next several years will be crucial for rapidly expanding expertise and establishing an end-to-end green hydrogen ecosystem. The development of a national hydrogen end-to-end ecosystem – from renewable power, electrolysis, storage, logistics, and consumption – would necessitate coordination throughout the industry as well as better public-private partnerships. The 25/25 Green H2 Hub Development Plan outlines a strategy for achieving this.”

Prabodha Acharya, Chief Sustainability Officer, JSW Group, and IH2A member, elaborated on the designated national hubs in the 25/25 plan as follows: “The 25/25 Plan outlines a pathway for India to utilize green hydrogen for industrial decarbonisation in difficult-to-mitigate industries. As illustrated in the strategy, industrial titans must collaborate and co-build the green hydrogen economy through national centers. This exceeds individual activities for commercializing green hydrogen and longer-term net-zero action plans disclosed by companies. We will set an example in the steel and cement industries by assisting in the development of these national hubs.”

Amrit Singh Deo, Senior Managing Director, FTI Consulting, and IH2A Secretariat lead, commented on the preparation of the 25/25 Green Hydrogen Hub Development Plan as follows: “The 25/25 plan addresses immediate project development priorities by providing a pathway to first 150 MW that will help India learn, improve, collaborate, and build scalable GW-scale green hydrogen projects in the 2025-30 period. It helps government and corporate decision-makers commercialize green hydrogen in a targeted and cost-effective manner. The planned public expenditures are a fraction of those of other economies.”

Nedim Husomanovic

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