Vital steps for enabling private investments in hydrogen ecosystem in India

Several governments have launched hydrogen specific programmes to fund R&D in technologies across the entire hydrogen value chain

The future success of hydrogen will hinge on innovation. Today, low carbon hydrogen is more costly than unabated fossil fuel-based hydrogen, which undermines its uptake. Multiple end-use technologies at early stages of development cannot compete in open markets, in part because they have not yet realised the economies of scale that come with maturity. Governments play a key role in setting the research agenda and adopting policy tools that can incentivise the private sector to innovate and bring technologies to the market. Programmes to foster hydrogen innovation are not yet flourishing, although some positive signals are emerging and several governments have launched hydrogen- specific programmes to fund R&D in technologies across the entire hydrogen value chain. However, current public R&D spending on hydrogen is below levels dedicated in the early 2000s during the last wave of support for hydrogen technologies. Further, integrated efforts will be required to avoid bottlenecks along the value chain.

Government and industry cooperation is critical to ensure the implementation of robust innovation programmes. With more than EUR 1 Billion in funding provided since 2008, the Fuel Cells and Hydrogen Joint Undertaking (FCH JU) is a prime example of a public private partnership to support R&D and technology demonstration. Building on its success, European commission launched the Clean Hydrogen for Europe Joint Undertaking at the end of 2021, with matching budgets of EUR 1 Billion from public funding and private investment until 2027.

Hydrogen and Fuel Cell (HFC) programme in India focuses to develop transformational technologies that reduce the cost of hydrogen production, distribution & storage, diversify the feedstock available for economic hydrogen production, enhance the flexibility of the power grid and reduce emissions through novel uses of low- cost hydrogen - Hydrogen Research Initiative, India

Indian government has also been supporting broad research development and demonstration programme on hydrogen energy and fuel. Projects are supported in industrial, academic and research institutions to address challenges in production of hydrogen from renewable energy sources, its safe and efficient storage, and its utilization for energy and transport applications through combustion or fuel cells. With respect to transportation, major work has been supported to Banaras Hindu University, IIT Delhi, and Mahindra & Mahindra. This has resulted in development and demonstration of internal combustion engines, two wheelers, three wheelers, and mini- buses that run on hydrogen fuel. Two hydrogen refuelling stations have been established (one each at Indian Oil R&D Centre, Faridabad and National Institute of Solar Energy, Gurugram).

The Government of India has allotted Rs 25 crore in the Union Budget 2021–22 for the research and development in hydrogen energy and intends to produce three-fourths of its hydrogen from renewable resources by 2050. Further, the government of India identified pilot projects, infrastructure and supply chain, research and development, regulations and public outreach as broad activities for investment with a proposed financial outlay of INR 800 crores for the next three years. India, aims to leverage the country’s landmass and low solar and wind tariffs to produce low-cost green hydrogen and ammonia for export to Japan, South Korea and Europe. In this regard, there are immense possibilities for India to collaborate with the Gulf Cooperation Council (GCC) countries that have also invested significantly in developing hydrogen as a future source of energy. Geographical proximity and robust trade ties in conventional energy calls for proactive measures by India to collaborate with GCC countries especially Saudi Arabia, UAE and Oman for research and development pertaining to hydrogen energy.

India and the GCC are natural energy partners and have huge potential for extending cooperation in cleaner fuels like hydrogen. India has signed MoUs on renewable energy with most of the GCC countries. India’s largest pure-play solar platform Acme Solar Holdings Ltd plans to invest US$ 2.5 billion to manufacture green ammonia and green hydrogen in Duqm and signed an MoU with the Oman Company for the Development of the Special Economic Zone. The manufacturing facility will supply green ammonia to Europe, America and Asia region and will produce 2,200 metric tonnes (mt) of green ammonia per day.

India is looking at developing Hydrogen collaboration with Bahrain and even invited Bahrain to participate in the Hydrogen Roundtable when Bahraini foreign minister Dr Abdullatif bin Rashid Al-Zayani visited New Delhi in April 2021. The two countries agreed to engage more in renewable energy capacity-building and focus on cooperation between their governments as well as the private sector, particularly in the field of solar, wind and clean hydrogen.