You are currently viewing Government Receives $5 Billion for National GH2 Hub from IH2A

Government Receives $5 Billion for National GH2 Hub from IH2A

The Prime Minister’s Office, Cabinet Secretariat, and the Ministry of New and Renewable Energy in the Government of India have received a national green hydrogen hub (National GH2 Hub) economic viability and development plan from the India Hydrogen Alliance (IH2A), a Delhi-based business group.

It claimed that the Plan might, through public-private partnerships, lead to the creation of five sizable, national green hydrogen firms with a market value of $5 billion by 2030.

According to the official press release, the plan “seeks public finance support for green hydrogen production and offtake to create the necessary infrastructure in the initial 2024–2030 period, and publicly list the national hydrogen corporations created as a result to fund the next wave of investments to scale up the hydrogen economy.”

According to Jill Evanko, chief executive and president of Chart Industries and a founding member of IH2A, this is a means for India to hasten the creation of green hydrogen hubs and produce national infrastructure assets in a financially sustainable way.

“By dividing the profits and risks of green hydrogen project development between the public and private sectors, India can advance other economies in the development of green hydrogen. For national hubs to be financially viable, ongoing public financial support is essential, she said.

Evanko noted that during this year’s G20 Summit, India ought to disclose the existence of at least one of these huge green hydrogen centers.

This strategy, she said, “shows how India can create a National Green Hydrogen Unicorn within the next seven years, and the Indian government stands to gain significantly from it.”

IH2A claims that to create the Plan, a reference economic model of the green Kochi hydrogen hub was used as a starting point. This model depicts the Kochi hydrogen hub as a 50:50 public-private special purpose vehicle with a 150 MW electrolyzer capacity, storage and evacuation infrastructure, renewable energy inputs, green ammonia production plants, and offtake by industrial and mobility users, with a $468 million capital expenditure investment spread over a 20-year project period.

Similar large-scale green hydrogen centers are advised to be built in Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh, according to the Plan.

“The economic modeling is based on few assumptions regarding public finance incentives, renewable energy costs, end-use offtake, and project structuring on a public-private partnership format,” said Amrit Singh Deo, senior managing director of FTI Consulting and the IH2A Secretariat lead.

Source: The Economic Times

For More Updates, Follow GH2 Solar on LinkedIn

Leave a Reply