The India Hydrogen Alliance (IH2A), a coalition led by industry stakeholders, has presented a development plan to the Indian government that outlines the establishment of five large National Green Hydrogen Corporations. With a combined value of $5 billion, these hydrogen hubs aim to leverage public-private partnerships to drive the growth of the green hydrogen sector in India.
The IH2A’s proposal, known as the National Green Hydrogen Hub Economic Viability and Development Plan, seeks financial support from the government to facilitate the production of green hydrogen and the creation of necessary infrastructure between 2024 and 2030.
The envisioned corporations will be publicly listed entities, designed to attract investments that will further expand the hydrogen economy. The inspiration for this initiative emerged from the success of the Green Kochi Hydrogen Hub (GKH2), which was established as a Special Purpose Vehicle (SPV) with equal participation from the public and private sectors. GKH2 aimed to develop infrastructure encompassing a 150-megawatt electrolyzer capacity, storage and evacuation facilities, renewable energy sources, and green ammonia production sites catering to industrial and mobility users. Spanning a 20-year timeframe, the GKH2 project requires an initial investment of $468 million.
Jill Evanko, Chief Executive and President of Chart Industries and a founding member of IH2A, expressed the belief that India has the potential to lead global green hydrogen development by sharing the risks and rewards of project development between the public and private sectors. Evanko stated that India could create a National Green Hydrogen Unicorn within the next seven years through this approach. Furthermore, she revealed that India is expected to announce at least one of the five hydrogen corporations during the G20 Summit later in 2023.
IH2A has submitted proposals for green ammonia and hydrogen hubs to several states in India, including Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu. The economic modeling of the plan demonstrates its replicability and showcases the financial viability of designing and constructing green hydrogen facilities, according to Amrit Singh Deo, Senior Managing Director of FTI Consulting and IH2A Secretariat Lead.
Earlier in 2023, the Indian capital, New Delhi, approved a deal worth over $2 billion to promote clean hydrogen and reduce carbon emissions, with the goal of becoming a key exporter in the industry. To incentivize the adoption of green hydrogen, the Indian government plans to provide incentives of 30 rupees ($0.36) per kilogram of green hydrogen fuel, significantly reducing the current production cost of approximately 300 rupees ($3.63) per kilogram in the country.
