Industry-led coalition India Hydrogen Alliance (IH2A) has submitted a development plan to the Indian government that aims to utilize public-private partnerships to launch five large National Green Hydrogen Corporations. The hydrogen hubs would be worth a total of $5 billion.
IH2A’s National Green Hydrogen Hub Economic Viability and Development Plan is looking for public financial support for green H2 production and the creation of the needed infrastructure in the period between 2024 and 2030.
The resulting five corporations will be publicly listed with the aim to finance new investments to scale the hydrogen economy.
The initial concept of the project stemmed from the economic framework of the Green Kochi Hydrogen Hub (GKH2). It was formulated as a Special Purpose Vehicle (SPV) with equal participation from the public and private sectors. The SPV aimed to establish infrastructure with a 150 megawatt (MW) electrolyzer capacity, storage and evacuation facilities, renewable energy sources, and green ammonia production sites catering to the needs of industrial and mobility users. The overall project, spanning a duration of 20 years, requires a CAPEX investment of $468 million.
“India can leapfrog other economies on green hydrogen development by sharing the risks and rewards of green hydrogen project development between public and private sectors,” said Jill Evanko, Chief Executive and President of Chart Industries, and founding member of IH2A. “The Indian government stands to gain significantly from this approach, which demonstrates how India can create a National Green Hydrogen Unicorn within the next seven years.”
India is set to announce at least one of the five hydrogen corporations during the G20 Summit later in 2023, she also said.
The India Hydrogen Alliance has submitted proposals for the green ammonia and H2 hubs to Gujarat, Maharashtra, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
The plan’s economic modeling of the plan is replicable and shows that financially viable green H2 can be designed and built, said Amrit Singh Deo, Senior Managing Director of FTI Consulting, and IH2A Secretariat Lead.
Earlier in 2023, India’s capital New Delhi approved a deal worth over $2 billion for the promotion of clean H2 in an effort to reduce carbon emissions and become a key exporter in the industry.
The Indian government will provide incentives of 30 rupees ($0.36) per kilogram of green H2 fuel, Reuters reported. Manufacturing green H2 currently costs about 300 rupees ($3.63) per kilogram in the country.