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Last Update 23 April 2024

Govt outlay of Rs 200 cr for green hydrogen hubs insufficient

The scheme recently launched by the government aims to support the development of core infrastructure at hydrogen hubs – at-least two by 2025-26 – specifically for common services and facilities, rather than funding individual project components.

“Its salient features indicate certain criteria to identify hydrogen hubs but a clear framework for identification of hydrogen hubs is missing” said  Mr. Ravi Shekhar, managing director, Eninrac Consulting.

Shekhar said that it is ideal for the hydrogen industry and the government to set up a hydrogen hub assessment framework which is consistent throughout each potential site with varying degrees of importance.

He added that the outlay proposed till 2025-26 for two plot hubs in the scheme is Rs 200 crore, might fall short for hydrogen hub development of similar size and scale to the proposed Green Kochi Hydrogen Hub in Kerala.

“This clearly signifies that more financial leverage has to be provided by the government apart from the capitalisation for the project developers/SPV for H2 hubs,” said  Mr. Ravi Shekhar.

A concept level framework for identification of hydrogen hubs could have been included which would have been ideal to inform decision makers about rating different potential sites for further investigations. He said that this was purely for the fact that there might exist many dynamic factors that get into a selection for location for a domestic hydrogen hub which, ironically in this scheme, is concentrated only in terms of basic infrastructure help.

“For instance, in order to select potential sites for developing H2 hubs let us assume a framework which is consistent through two potential hypothetical sites – which ideally should have been included in the scheme notified by GoI,” added Mr. Ravi Shekhar.


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