The roundtable, hosted by GH2 and supported by Thyssenkrupp Nucera, the Embassy of Norway in India, and the Indo-German Energy Taskforce, focused on advancing green hydrogen in India. The discussions revolved around aligning with global standards, financing mechanisms, and leveraging technology to address challenges and opportunities in the sector.
1. Export Readiness and Certification Compliance
Exporting green hydrogen, particularly to the European Union (EU), emerged as a significant opportunity. However, strict compliance with the RFNBO (Renewable Fuels of Non-Biological Origin) standards is essential for market entry. Companies like AM Green, which have pre-certified projects, shared insights on early alignment with these regulations. The importance of certification was emphasized as it enhances credibility and ensures adherence to EU standards, enabling smoother trade.
Sam Bartlett from GH2 advocated for prioritizing green hydrogen over blue hydrogen due to its long-term environmental and financial benefits. He called for global standards, aligned with ISO, to promote transparency, investor trust, and seamless international trade.
2. Financing Challenges and Solutions
Financing was a central theme, with discussions focusing on how to unlock European capital for Indian green hydrogen projects. Sanmit Ahuja highlighted the need to explore alternative financial instruments due to venture capital's (VC) limitations in supporting large-scale industrial projects. Traditional investors, including banks and private equity (PE) firms, remain cautious due to unclear returns on investment and regulatory hurdles.
Representatives from Development Finance Institutions (DFIs), such as the World Bank, discussed the role of credit enhancement and guarantee instruments in de-risking projects. Moez from the World Bank stressed the importance of regulated taxonomies and lower interest rates to improve the financial viability of green hydrogen projects. Blended finance was identified as a critical tool to reduce risk for early investors and accelerate project deployment.
3. Engineering and Technological Innovations
Engineering and technological advancements are essential to scaling green hydrogen production. The session highlighted innovations that address these challenges, including Newtrace’s prototype electrolyser, which reduces energy consumption to 42 kWh—significantly more efficient than current technologies. Lowering operating costs through such innovations is key to making hydrogen production commercially viable.
Vaithyanathan from Thyssenkrupp Nucera stressed the need for gigawatt-scale projects in India. Such projects would lower costs through economies of scale and position India as a global leader in green hydrogen exports, particularly to Europe.
4. Infrastructure for Green Hydrogen Export
Building infrastructure to support a green hydrogen export economy was another critical focus. Mark Simons from the Port of Rotterdam emphasized the need for investment in port facilities capable of handling green ammonia and hydrogen exports. Such infrastructure would be pivotal in leveraging global demand and enhancing India's position in the international green hydrogen market.
5. Gender Diversity in Green Hydrogen
A significant development during the roundtable was the launch of the Women Leaders in Hydrogen partnership with GH2, aimed at promoting gender diversity in the sector. The initiative highlights the importance of empowering women and ensuring a gender balance in leadership roles within the green hydrogen industry.
6. Policy Support and Incentives
Government policies such as the Production Linked Incentive (PLI) scheme, which allocates ₹18,100 crores for advanced battery manufacturing, were highlighted as crucial for the sector's development. Customs duty exemptions further boost financial viability, making it more attractive for projects in Gujarat and beyond. Participants agreed that while India's hydrogen value chain is still in its infancy, policies focused on reducing reliance on critical minerals and building robust infrastructure are essential for long-term sustainability and growth.
Conclusion
The roundtable concluded with a consensus that innovative financing mechanisms, cutting-edge technology, and robust certifications will be key in overcoming the challenges facing India’s green hydrogen sector. Aligning with global standards, scaling gigawatt-level projects, and investing in export infrastructure can position India as a leader in the international green hydrogen market.
