India Hydrogen Alliance (IH2A) has presented a comprehensive plan to the Indian government, outlining the establishment of five large national green hydrogen corporations by 2030.
With a collective enterprise value of $5 billion, these corporations aim to drive the growth of the hydrogen economy in India. The plan highlights the importance of public finance support, including capital expenditure (CAPEX) and offtake incentives, to create financially viable green hydrogen infrastructure during the initial period of 2024-2030.
IH2A advocates for a strong public-private partnership to accelerate the commercialization of green hydrogen and leverage the government’s role in market development. The plan emphasizes the need for government participation as an equity partner in the development of hydrogen hub production, storage, and evacuation infrastructure. It also calls for enabling guaranteed offtake for defined volumes and incentives for infrastructure development over the first seven years (2024-2030).
According to the plan, large-scale green hydrogen hubs can achieve commercial viability with offtake prices ranging from $6 to $4.25 per unit of green hydrogen between 2024 and 2030. These estimates are based on the preliminary calculations for delivered green hydrogen prices at the demand or offtake point.
Jill Evanko, Chief Executive and President of Chart Industries and a founding member of IH2A, highlighted the significance of sustained public finance support for national hubs in ensuring their financial viability. By sharing the risks and rewards of green hydrogen project development between the public and private sectors, India can potentially leapfrog other economies in green hydrogen advancement.
IH2A proposes the announcement of at least one large-scale green hydrogen hub during the G20 Summit this year, showcasing India’s commitment to becoming a global leader in green hydrogen. The plan also recommends the development of similar hubs in Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh, replicating the successful model of the Green Kochi Hydrogen Hub (GKH2).
The GKH2, a 50:50 venture between the government and private participants, serves as a reference economic model in the plan. It includes a 150 MW electrolyzer capacity, storage and evacuation infrastructure, renewable energy inputs, green ammonia production plants, and offtake agreements with industrial and mobility users. The proposed national hubs would produce compressed gaseous hydrogen for industrial use, green ammonia, and liquid hydrogen for transportation purposes.
Amrit Singh Deo, Senior Managing Director at FTI Consulting and IH2A Secretariat lead, highlighted that the economic modeling in the plan relies on assumptions related to public finance incentives, renewable energy costs, end-use offtake, and project structuring. However, the model demonstrates the feasibility of designing and constructing financially viable green hydrogen hubs. Further techno-commercial studies will support the acceleration of project development.
IH2A has also submitted proposals for state-level green ammonia and hydrogen hubs in Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu. This collaborative effort aims to create a robust green hydrogen infrastructure and unlock the potential of hydrogen as a clean energy source in India.