The EU wants to cooperate with India on green hydrogen projects over the coming months as it looks to expand its list of potential suppliers.
Speaking at the first EU-India Green Hydrogen Forum, EU energy commissioner Kadri Simson said there were many avenues for cooperation—including the Horizon Europe funding programme, technology accelerator the Fuel Cells and Hydrogen Joint Undertaking, and knowledge-sharing body the Trade and Technology Council.
“We want to work with you and financing partners in view of a hydrogen project pipeline in India,” she added.
“The EU and India can learn from one another: on international standards, on research and innovation, and on policy frameworks.”
10mn t/yr – Targeted EU green hydrogen imports by 2030
The EU is developing similar partnerships around the world, including with Egypt, Chile and Namibia—all potential suppliers of green hydrogen.
As part of its RepowerEU package, the bloc aims to secure 10mn t/yr of green hydrogen imports by 2030. As well as developing partnerships with potential supplier regions, the European Commission has proposed creating a global European hydrogen scheme to help finance global green hydrogen supply chains.
The proposal is still under development but will be partly modelled on Germany’s H2Global support scheme for green hydrogen projects outside the EU.
Under the German scheme, a government-backed entity will buy green hydrogen from non-EU projects under long-term offtake agreements. The hydrogen will then be sold within the EU under short-term resale contracts.
India’s National Hydrogen Mission sets a goal of 5mn t/yr of green hydrogen production by 2030.
But just 7.8GW of electrolytic hydrogen projects had been announced as of June 2022, while announced electrolyser manufacturing plants will amount to just 4GW/yr by 2030, according to research by consultancy EY.
An energy conservation bill, currently moving through the legislative process, contains measures that, if passed, will help boost the sector, including mandating hydrogen use targets in certain sectors. The legislation could also introduce production-linked incentives for firms setting up electrolyser manufacturing capacity.
But India has not yet specifically targeted production for exports or received any significant foreign investment in production projects.
“Because we are a huge market, most of the production will be consumed here,” Raj Kumar Singh, India’s minister of power and new and renewable energy, said at the forum, adding there was still space for “cooperation” with the EU.
“The EU will need to diversify its sources of supply,” he said. “And we shall sell to you—as long as you have open and competitive markets.”
Author: Tom Young