Companies have so far announced plans for 48 renewable hydrogen projects in India that could produce a combined 3.5mn t/yr if realised, the ministry for new and renewable energy's secretary Bhupinder Singh Bhalla said at the International Conference on Green Hydrogen in New Delhi.
Provided the projects are completed by the end of the decade, they could provide some 70pc of India's goal to establish 5mn t/yr of renewable hydrogen capacity by 2030.
India is also seeing interest from firms looking to set up electrolyser manufacturing facility. Companies have announced plans for 19 factories so far, Bhalla said on 5 July at the conference. But only one plant is currently operational and construction has begun on another two, he added. US firm Ohmium is already producing electrolysers in Bengaluru in the south of the country, while small start-ups and conglomerates alike have announced plans to build manufacturing sites across the country.
India is keen to further grow the pipeline for hydrogen-related projects, Bhalla said, pointing to the massive amount of investment needed to realise the country's ambitious goal for the industry. "We need about $100bn of investment but this is just a preliminary estimate," he said. "The actual number is going to be much larger."
Bhalla noted that the ease of doing business will be crucial. "We want everybody to come and set up facilities as easy as it can be. We don't want our industry to face problems."
Some key hurdles still need to be overcome, according to Bhalla. These include defining regulations and standards, an area where Bhalla still sees a need to do "a lot of work".
India's minister for new and renewable energy Raj Kumar Singh touted India's potential for renewable hydrogen production at the Delhi conference. India could produce renewable hydrogen at the lowest cost globally, as it is the most cost-competitive location for setting up renewable power generation capacity, he said.
Trade barriers
Singh also reiterated previous criticism of other countries' hydrogen policies. The minister has repeatedly criticised large subsidies planned by some countries, referencing planned support of up to $3/kg — the maximum subsidy that the US intends to grant on clean hydrogen production. Such barriers could hinder free trade and foster protectionism, according to Singh.
India may retaliate with its own measures, the minister warned. "If you can put up barriers, we can put up barriers as well," Singh said. And if India starts putting up barriers that could keep companies from entering the biggest market in the world other than China, he added.
India last week outlined plans for its own subsidy scheme to support renewable hydrogen production and electrolyser manufacturing. But the planned incentives would be considerably less generous than what the US and other countries are rolling out.
Hydrogen hubs
The creation of hydrogen hubs will be crucial for kick-starting a hydrogen economy, according to Bhalla.
Production and consumption will have to be located closely together, as high transportation costs will otherwise cut into project economics, Bhalla said. He indicated that the government is planning consultation on the development of hydrogen hubs.
Industry association India Hydrogen Alliance has called for the government to create five large renewable hydrogen hubs that could be collectively worth $5bn by 2030 through public-private partnerships.
Delhi has "earmarked a little bit from our budget for the hubs", Bhalla noted, but added that India does not have the same budget as the US that has set aside $8bn for developing hydrogen hubs. India's entire national green hydrogen mission, which also entails the production-linked incentive schemes and other measures, was endowed with an initial outlay of 197.44bn rupees ($2.4bn).
India's federal states will have a crucial role to play in realising hubs and are "very proactive" in determining opportunities for this, Bhalla said.
