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Green Hydrogen Hubs: Unleashing India’s Sustainable Energy Potential

12 Jun 2024

India is taking bold steps towards becoming a global leader in green hydrogen with the establishment of green hydrogen hubs, strategically positioned to revolutionize the nation’s energy landscape.

These hubs, designed as concentrated areas where production and utilization facilities are closely linked, are set to overcome significant challenges in hydrogen transport, logistics, and infrastructure costs.

The Vision Behind Green Hydrogen Hubs

Launched under the ambitious National Green Hydrogen Mission, these hubs aim to make India a powerhouse in the production, usage, and export of green hydrogen and its derivatives. By 2030, India plans to boost its green hydrogen production capacity to 5 million metric tons per annum (MMT). Central to this mission is the creation of hydrogen hubs which promise economies of scale and concentrated infrastructure, significantly enhancing the viability of green hydrogen projects.

Strategic Locations and Economic Zones

Special Economic Zones (SEZs) are being eyed as ideal locations for these hubs due to the policy incentives and financial benefits they offer. SEZs can help reduce the costs and complexities associated with setting up green hydrogen facilities. Locating hubs near manufacturing and industrial zones ensures a steady demand for green hydrogen, while ports facilitate competitive import and export options, reducing logistical costs.

Three major ports have been identified for development into hydrogen hubs:

  • Deendayal Port

  • Paradip Port

  • V.O. Chidambaranar Port (Tuticorin)

Notably, V.O. Chidambaranar Port in Tamil Nadu is set to become India’s first green hydrogen hub, with 500 acres allocated for this purpose and a memorandum of understanding signed with NTPC Ltd. Additionally, NTPC is collaborating with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to develop an Integrated Green Hydrogen Hub on 1,200 acres near Pudimadaka village in Visakhapatnam.

Government Support and Industry Growth

The Government of India has rolled out the ‘Scheme Guidelines for setting up Hydrogen Hubs in India’ with a budget of INR 200 crore to establish two green hydrogen hubs by the financial year 2025-26. This initiative will support critical infrastructure, including storage, transportation facilities, pipeline development, refueling stations, and technologies for hydrogen compression and liquefaction.

Developing green hydrogen hubs is not just an environmental imperative but an economic one too. These hubs are expected to create jobs, stimulate local economies, advance hydrogen technologies, and attract significant private investment in clean energy.

Policy and Regulatory Framework

While the policy and regulatory framework for green hydrogen in India is still evolving, the rapid development aims to meet the country’s sustainability goals. Industry experts emphasize the need for longer-duration incentives due to the capital-intensive nature of the sector, where returns on investment are expected over extended periods. Reducing taxes and duties on essential components for green hydrogen production would provide immediate cost relief and support rapid industry growth.

The Future of Green Hydrogen in India

With the government’s commitment to clean energy sources, business opportunities in the green hydrogen value chain are set to expand, attracting substantial private investments. The strategic development of green hydrogen hubs marks a significant step towards a sustainable and low-carbon economy, positioning India as a global leader in the green energy revolution.

As the world looks towards sustainable energy solutions, India’s green hydrogen hubs symbolize a promising leap into a future powered by clean, renewable energy.

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