Highlights from GH2 India High-Level Roundtable with thyssenkrupp Nucera

On 12th September 2024, GH2 hosted a high-level roundtable in collaboration with thyssenkrupp Nucera and the Indo-German Energy Forum at the Norwegian Embassy in New Delhi. This exclusive gathering brought together industry leaders, financiers, and policy experts to address critical topics related to green hydrogen in India, covering finance, technological advancements, and global certifications.

Key Takeaways:

1. Financing Green Hydrogen Projects

Sanmit and Surbhi led discussions on the financing challenges for large-scale green hydrogen projects. Traditional funding avenues, such as Venture Capital (VC) and Private Equity (PE), often face hurdles due to unpredictable Return on Investment (ROI). This lack of financial confidence slows down project scalability.

Mr. Sanmit Ahuja from Bharatia emphasised the role of First-of-a-Kind (FOAK) projects, which are essential to demonstrate the viability of new technologies. These projects can pave the way for larger, long-term investments once investor confidence is established.

Mr. Moez from the World Bank pointed out the need for a regulated taxonomy and lower interest rates to de-risk green hydrogen investments. He highlighted that blended finance can reduce risks for early-stage adopters and facilitate capital flow into the sector.

2. Engineering and Technology Advancements

Scaling production was identified as a key challenge for the green hydrogen sector. Prasanta from Newtrace shared insights on their new prototype electrolyser, which reduces energy consumption to 42 kWh, significantly lowering production costs. Innovations like these will make hydrogen production more commercially viable, offering long-term sustainability.

Mr. Vaidyanathan from thyssenkrupp Nucera stressed the necessity of gigawatt-scale projects to reduce hydrogen production costs through economies of scale. These large-scale initiatives are critical for India to meet its domestic demand while positioning itself as a global leader in hydrogen exports.

3. Building Infrastructure for Green Hydrogen Exports

Mark Simons from the Port of Rotterdam discussed India’s potential to leverage international demand for green hydrogen. He emphasised the need for investments in port facilities capable of handling exports of green hydrogen and ammonia, to establish India as a key player in the global hydrogen economy.

4. Certification and Global Standards

A significant part of the discussion revolved around the importance of global certification standards for green hydrogen. Arnav from AM Green explained the choice of CertifHy for the Kakinada plant, aligning the project with European standards for Renewable Fuels of Non-Biological Origin (RFNBO). This ensures that the hydrogen produced complies with EU regulations for export.

Mr. Sam Bartlett underscored the long-term benefits of focusing on green hydrogen over blue hydrogen, which still involves significant emissions. The participants advocated for a unified global certification system that would simplify trade and provide transparency to investors and stakeholders. Aligning with international standards like ISO is essential for building a credible green hydrogen value chain.

5. Gender Diversity in Hydrogen Leadership

The roundtable also saw the launch of the Women Leaders in Hydrogen Forum, a partnership with GH2 that aims to empower women and promote gender balance in the rapidly growing hydrogen industry.

The GH2 India High-Level Roundtable reaffirmed the importance of innovation, collaboration, and policy alignment to advance the green hydrogen agenda in India. With gigawatt-scale projects on the horizon and a robust focus on global standards, India is poised to become a significant player in the green hydrogen space, both domestically and globally.