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Last Update 26 June 2023

Vital steps for enabling private investments in hydrogen ecosystem in India

Understanding upstream environment for hydrogen -steps required to realize private sector investments 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.

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.


India and the GCC are natural energy partners and have huge potential for extending cooperation in cleaner fuels like hydrogen

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).

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