India’s 2025 hydrogen output goal needs $360m government investment

Priya Jestin

06-Jul-2022

MUMBAI (ICIS)–India needs to build 25 scalable green hydrogen projects and five national hydrogen hubs by 2025 for energy security and would require $360m in financial support from the government, according to the India Hydrogen Alliance (IH2A),

The proposed 25/25 National Green Hydrogen Hub Development Plan is being pushed by IH2A, a coalition of firms, with Indian petrochemical major Reliance Industries Ltd (RIL), steel major JSW Steel and US-based Chart Industries – global manufacturer of equipment used in the hydrocarbon and industrial gases industries – as lead members.

NITI Aayog, a public policy think tank of the Indian government is also a member of the IH2A.

The plan focusses on creating green hydrogen projects and hubs that can grow to gigawatt-scale in three years.

Twelve industrial decarbonisation projects in chemicals, refinery and steel industries; three heavy-duty transport projects; three hydrogen blending projects in city gas distribution (CGD) networks; and seven waste-to-hydrogen municipal projects would be built under the plan.

Five states – Gujarat and Maharashtra in western India and Karnataka, Kerala and Andhra Pradesh in southern India -– were identified as potential hubs for the projects.

At these hubs, multi-sectoral demand for green hydrogen can be produced and used without building expensive new infrastructure in the next three years, according to IH2A.

As part of the plan, IH2A proposes building a green chemicals and ammonia fertilizer hub in Gujarat producing 8,000 tonnes/year of green hydrogen.

The Bellary-Nellore belt spanning the two states of Karnataka and Andhra Pradesh can be developed as a green steel and chemicals corridor producing 5,000 tonnes/year of green hydrogen, the industry body stated.

The government’s $360m capital outlay would go into electrolyzers and equipment for the green hydrogen projects, it added.

In a separate report, the Indian government think tank, the NITI Aayog has proposed that by 2030, the refinery and fertilizer sectors should be mandated to use 50% and 100% green hydrogen, respectively.

The report – Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India released on 30 June – has proposed that the government should set up hydrogen corridors and provide grants for the production, storage and export of green hydrogen.

In February, India announced a target of producing 5m tonnes/year of green hydrogen by 2030.

The Indian government is currently in the process of holding consultations with stakeholders and is expected to launch a comprehensive green hydrogen mission which could announce purchase obligations for various industries, according to media reports.

Focus article by Priya Jestin

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