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MEPC 84: What the Latest IMO Discussions Mean for India’s Green Shipping Opportunity

Fri, 01 May 2026 09:21:08 GMT

The IMO’s Marine Environment Protection Committee is meeting in London for its 84th session from 27 April to 1 May 2026. The final IMO press release and plenary confirmation are still awaited at the time of writing. This note is therefore based on working group documents available from within the session, particularly MEPC 84/WP.5, WP.6, WP.7 and WP.8, dated 27–30 April 2026. IMO’s official preview confirms that MEPC 84 is considering key implementation work on greenhouse gas reduction, marine fuel lifecycle guidelines, biofuels, and the proposed North-East Atlantic Emission Control Area.

For India, the message is clear: the regulatory case for green hydrogen-derived marine fuels is becoming stronger. Even while the IMO Net-Zero Framework remains politically contested, the direction of travel is unmistakable. Shipowners serving India–Europe routes will face a growing stack of compliance obligations under EU ETS, FuelEU Maritime, tighter IMO fuel certification rules, and potentially a new North-East Atlantic Emission Control Area.

1. North-East Atlantic ECA: A new compliance layer on the India–Europe route

One of the most important developments at MEPC 84 is the expected adoption of the North-East Atlantic Emission Control Area, covering waters off Greenland, Iceland, the Faroe Islands, Ireland, the United Kingdom, France, Spain and Portugal.

The proposed ECA would regulate nitrogen oxides, sulphur oxides and particulate matter under MARPOL Annex VI. IMO had already indicated that the North-East Atlantic ECA proposal was approved at MEPC 83 and expected to be adopted at MEPC 84.

For GH2 India members, this matters because most India–Rotterdam and India–North Europe maritime routes pass through or near these waters. If formally adopted, conventional fuel vessels on this corridor will face an additional air-pollution compliance layer, alongside existing EU climate regulations.

This strengthens the commercial case for low- and zero-carbon fuels such as green ammonia and green methanol. These fuels can reduce exposure to sulphur-related compliance costs and, depending on engine technology and after-treatment systems, reduce regulated air-pollution intensity.

" India–Europe green shipping corridor is no longer only a climate opportunity. It is becoming a compliance-driven commercial opportunity with the proposed ECA."

2. No energy multiplier for ZNZ fuels: A better outcome for India

The working group documents indicate that an energy multiplier for zero or near-zero greenhouse gas emission fuels was not included in the GFI calculation guidelines.

A multiplier would have rewarded the volume of qualifying fuel used. That could have favoured fuels already available at commercial scale, regardless of their true lifecycle abatement value. Instead, the reward mechanism is expected to focus on verified emissions reduction.

That matters because Indian green hydrogen derivatives can be highly competitive on a lifecycle basis if renewable electricity sourcing, certification, and production emissions are properly documented. IMO’s public material on the Net-Zero Framework states that zero or near-zero fuels would generally need to meet a lifecycle threshold of 19.0 gCO₂eq/MJ or lower, representing an 80% reduction against the current average fuel intensity of 93.3 gCO₂eq/MJ.

" Indian green ammonia/methanol sit at 4–15 gCO₂eq/MJ - therefore strong assessments and verification of life-cycle emissions would provide a better opportunity for fuel producers in the sub-continent. A clear certification architecture would allow Indian producers to demonstrate their true lifecycle advantage. "

3. Biofuel certification is tightening from 2027

The working group has also advanced revised interim guidance on biofuels under MARPOL Annex VI, with an expected application date of 1 January 2027. The core principle is important: biofuel blends that cannot prove the sustainability of the biogenic component should not receive greenhouse gas credit. In practical terms, uncertified biofuel blends may be treated like equivalent fossil fuels for IMO accounting purposes.

This has direct implications for the shipping fuel market. Biofuels are often presented as a near-term compliance option because they can be blended into existing fuel systems. But sustainable biofuel supply is limited, and shipping will be competing with aviation, road transport and other sectors for the same certified feedstock pool. Green hydrogen derivatives do not face the same feedstock ceiling. For India, this reinforces the long-term strategic value of green ammonia and green methanol as scalable maritime fuel options.

" Biofuels may play a bridging role, but they are unlikely to be the scalable foundation of global maritime decarbonisation."

4. Sustainable Fuel Certification Scheme: The most urgent issue for India

The most important issue for Indian producers is not only the headline IMO Net-Zero Framework. It is the Sustainable Fuel Certification Scheme, which will determine which fuels can qualify for IMO rewards and surplus units.

The working group has advanced text on governance, recognition of certification schemes, application procedures and reporting structures. However, one critical question remains unresolved: chain of custody.

Many Indian green hydrogen and green ammonia projects are expected to rely on grid-connected renewable electricity, backed by PPAs and certification systems. This model depends on recognition of mass balance or equivalent certification approaches, rather than requiring physical tracing of each electron from renewable generation to electrolyser.

This is broadly aligned with the way renewable fuels of non-biological origin are treated in other major regulatory systems, including the EU framework. But if the IMO were to require strict physical segregation instead, it could create a major certification barrier for Indian producers. This is the highest-priority policy issue for India ahead of the expert workshop before ISWG-GHG 22.

"India must ensure that IMO certification recognises credible mass balance and PP A-backed renewable electricity models. Without this, Indian green fuel exports could face unnecessary barriers."

5. The Net-Zero Framework remains politically contested

MEPC 84 is not the final adoption moment for the IMO Net-Zero Framework. The formal adoption decision is expected when the extraordinary MEPC session reconvenes later in 2026, after the October 2025 extraordinary session was adjourned without adoption.

Political divisions remain, particularly among some hydrocarbon-exporting states. The debate continues around the greenhouse gas fuel intensity trajectory, penalty-and-reward mechanism, and treatment of different fuel pathways.

The India–Europe corridor does not depend only on IMO Net-Zero Framework adoption.

Several market-shaping measures are already moving independently:

EU ETS is already pricing shipping emissions. FuelEU Maritime is already creating a fuel-intensity compliance requirement for ships calling at EU ports. The proposed North-East Atlantic ECA would add another regional compliance layer. Biofuel sustainability rules are tightening. And fuel certification requirements are becoming more stringent.

Together, these developments make green ammonia and green methanol more commercially relevant for India–Europe shipping.

For Indian industry, the next phase is not only about tracking IMO negotiations. It is about shaping the certification rules that will determine market access.

The immediate priorities are:

Recognition of mass balance certification for renewable electricity used in green hydrogen and derivative fuel production.
Alignment with credible PPA-backed renewable procurement models, so grid-connected Indian projects are not disadvantaged.
Clear lifecycle accounting rules that reward actual carbon abatement rather than artificial multipliers.
Positioning India–Europe shipping corridors as early demand centres for Indian green ammonia and methanol.
Coordinated engagement with Indian authorities, including DG Shipping, MNRE, MoPSW, MEA and relevant trade bodies, before the next IMO expert discussions.

MEPC 84 confirms that the maritime fuel market is moving from ambition to rulemaking. For countries that can produce at scale what would matter most is how these fuels are being certified, traded and recognised under international compliance systems.

For India, this is both an opportunity and a warning.

India has the renewable energy base, project pipeline and export ambition to become a major supplier of green ammonia and green methanol for international shipping. Any misalignment with global consensus on compliance could affect long term and sustainable markets for the country.

India must engage early and decisively on the IMO Sustainable Fuel Certification Scheme, especially on chain of custody and mass balance recognition - ensuring that national interests and strong global sustainability criteria is met.

ACME’s Green Hydrogen Bet

Tue, 17 Mar 2026 05:27:53 GMT

The Indian developer quietly building one of the most advanced green ammonia portfolios

The global hydrogen economy is still in its formative stage. Across the world, hundreds of projects have been announced, but only a handful are moving steadily toward construction, contracting and eventual operation.

Among those developers pushing ahead is ACME Group - a GH2 India Anchor Member - that has assembled what is now widely seen as one of the most advanced portfolios of green hydrogen and green ammonia projects globally.

With projects spanning India and the Middle East, ACME represents a generation of developers that began preparing for the hydrogen economy well before it became central to government policy or global climate strategies.

Today, as hydrogen markets begin shifting from ambition to execution, that early conviction is beginning to show results.

Duqm, Oman

One of the world’s first commercial green ammonia export projects

ACME’s most prominent development is its Green Hydrogen and Green Ammonia facility in Duqm, Oman, one of the most advanced hydrogen export projects currently under development.

The first phase of the project will supply 100,000 tonnes of green ammonia annually to Norwegian fertiliser company Yara under a long-term offtake agreement. The first deliveries are expected in Q1 2027, which would position ACME to become the first Indian company to export green ammonia to Europe at commercial scale.

The Duqm project sits within Oman’s rapidly developing hydrogen ecosystem. The country has emerged as a strategic location for large-scale hydrogen production, benefiting from abundant solar and wind resources, deep-water port infrastructure and proximity to global shipping routes.

For ACME, Duqm represents more than a single project. It forms part of a broader vision of future clean energy trade corridors, where renewable-rich regions supply hydrogen derivatives such as ammonia to industrial demand centres across Europe and Asia.

As global demand grows for low-carbon fuels in sectors such as fertilisers, shipping and heavy industry, these trade corridors are expected to become a defining feature of the hydrogen economy.

Bikaner, Rajasthan

The early pilot that tested India’s hydrogen future

Years before hydrogen became a central pillar of India’s energy policy, ACME began experimenting with the technology.

In 2021, the company commissioned a pilot green hydrogen and green ammonia facility in Bikaner, Rajasthan. The project was relatively small in scale but strategically important. Powered by approximately 5 MW of solar capacity, the plant produced green hydrogen through electrolysis and converted part of it into green ammonia in a small demonstration facility.

At a time when India had yet to formally launch the National Green Hydrogen Mission, the project allowed ACME to test the practical realities of hydrogen production — integrating renewable power with electrolysers, managing intermittency, and operating ammonia synthesis systems.

The facility reportedly produced around 500 Nm³ of hydrogen per hour, or roughly 1750 tonnes annually, making it a pilot rather than a commercial plant. Yet the lessons gained were significant.

For ACME, the Bikaner project provided early operational experience with hydrogen technologies, insights that would later inform the development of far larger projects.

In retrospect, the plant stands as one of the earliest demonstrations of green hydrogen production in India, long before the sector attracted widespread global attention.

A Portfolio Built Across Markets

Since those early experiments, ACME has expanded its ambitions significantly.

Within India, the company has secured 370,000 tons per annum (TPA) across six contracts. This accounts for over 51% of the entire 724,000 TPA capacity tender, positioning itself as a major participant in the country’s emerging hydrogen derivatives market. This includes 100,000 TPA to IFFCO at the lowest tariff of Rs 49.75/kg and 50,000 TPA to Coromandel International.

At the same time, ACME is actively pursuing export partnerships with markets including Japan and Europe, where demand for green ammonia is expected to grow rapidly as countries seek alternatives to fossil fuels in fertilisers, shipping and power generation.

Taken together, these developments place ACME among the most advanced hydrogen developers globally, particularly notable in a sector where many announced projects remain at early feasibility stages. The company is likely to have at least 3 operational projects by the end of the decade.

The company’s strategy reflects a deliberate approach: build projects simultaneously across domestic supply chains, export corridors and international partnerships.

The Founder Behind the Strategy

Manoj Kumar Upadhyay’s journey from telecom infrastructure to clean energy

Behind ACME’s rise in the hydrogen sector stands its founder, Manoj Kumar Upadhyay.

Mr. Upadhyay began his career in the telecom tower infrastructure sector, building telecommunications networks during a period when India’s mobile industry was expanding rapidly. That experience in large-scale infrastructure deployment and systems integration later proved valuable as he moved into energy development.

He founded ACME as an infrastructure and technology company before expanding into renewable energy and solar power development. Over time, the company evolved into a major clean energy platform.

Upadhyay’s move into hydrogen came well before the sector became a central focus of global energy policy.

At the time, hydrogen projects faced uncertain economics and limited policy support. Yet Mr. Upadhyay believed that green molecules — hydrogen, ammonia and methanol — would eventually become essential to decarbonising industries that cannot easily electrify, including fertilisers, refining, steelmaking and maritime transport.

The Bikaner pilot was one of the first expressions of that conviction. Today, as the hydrogen sector begins to accelerate globally, ACME’s early investments are positioning the company at the forefront of a new energy market.

From Vision to Execution

Across the energy sector, hydrogen is now entering what many analysts describe as its execution phase.

Governments have announced ambitious hydrogen targets. Financing mechanisms are emerging. And industries ranging from fertilisers to shipping are beginning to explore the role hydrogen derivatives may play in their decarbonisation strategies.

Yet translating these ambitions into operational projects, infrastructure and trade flows remains the central challenge.

Developments like ACME’s projects in Duqm and Bikaner illustrate how the hydrogen economy may evolve:

renewable power feeding electrolysers
hydrogen converted into transportable fuels such as ammonia
long-term offtake agreements enabling project financing
ports emerging as gateways for global clean fuel trade

Together, these elements form the backbone of what is slowly becoming the next global energy system.

India’s Role in the Hydrogen Economy

The rise of companies like ACME also reflects India’s growing role in the international hydrogen landscape.

With vast renewable energy potential and strong policy backing through the National Green Hydrogen Mission, India is positioning itself as both a major hydrogen producer and a future exporter of green fuels.

Indian developers are increasingly active not only domestically but also across the Middle East and other renewable-rich regions, helping shape new energy trade corridors that could redefine global energy flows.

In this context, ACME’s portfolio represents more than the growth of a single company. It reflects the emergence of Indian energy developers as global actors in the hydrogen transition.

Turning Residues into Fuel: Why Biomass Matters to India’s Hydrogen Pathway

Fri, 06 Feb 2026 10:20:02 GMT

Turning Residues into Fuel: Why Biomass Matters to India’s Hydrogen Pathway

India’s hydrogen transition cannot rest on electrolysis alone. While renewable-powered electrolysis remains central to long-term decarbonisation, it is capital-intensive, grid-dependent, and constrained by freshwater availability. A parallel pathway is therefore emerging, one that is indigenous, decentralised, and rooted in India’s agrarian economy: biomass-to-hydrogen.

India generates hundreds of millions of tonnes of agricultural and organic residues annually by paddy straw, bagasse, crop stubble, forestry waste, and municipal biogenic waste. A significant share of this is either burned or left to decay, contributing to air pollution, methane emissions, and local environmental degradation. Converting these residues into hydrogen addresses two systemic challenges at once: waste management and clean fuel production.

Unlike water electrolysis, biomass-based hydrogen does not primarily depend on electricity. Instead, it leverages thermochemical and biological conversion routes, gasification, dark fermentation, and novel digestion processes to extract hydrogen from carbon-rich waste streams. While these technologies are at earlier Technology Readiness Levels (TRLs) than electrolysers and often less energy-efficient on a pure output basis, they deliver something electrolysis cannot: pollution abatement at source and rural value creation.

This makes biomass-to-hydrogen not just a technological choice, but a strategic industrial and environmental intervention.

What the Early Pilots Are Demonstrating

A small but significant set of pilots is testing different technological pathways and business models. Together, they illustrate the diversity and complexity of India’s biomass opportunity.

1. IISc–Indian Oil Corporation, Bengaluru

This operational research pilot uses oxygen–steam gasification to convert agricultural and forestry residues into hydrogen-rich syngas, followed by low-pressure gas separation to purify hydrogen. The plant produces roughly
6 kg of hydrogen per hour, equivalent to about 0.25 tonnes per day, targeted initially for fuel-cell mobility applications.

Importantly, the process achieves around 100 grams of hydrogen per kilogram of biomass, with steam playing a catalytic role in enhancing hydrogen yields through advanced reforming reactions. The project is supported by MNRE and DST and demonstrates how academic innovation can be scaled through a public-sector industrial partner.

2. Biezel Green Energy, Mirzapur (Uttar Pradesh)

Biezel’s approach is explicitly decentralised. Using a Thermally Accelerated Digestion (TAD) reactor, the system processes up to 2 tonnes of biomass per reactor, achieving about 45% feed-to-fuel conversion efficiency.

Rather than producing pure hydrogen alone, the process yields a mixed energy slate: approximately 4% hydrogen, 14–16% CNG, 28–30% bio-coal, and small quantities of bio-tar. This multi-product model is critical for rural viability, as it creates diversified revenue streams while reducing open-field burning of residues.

3. Gensol Engineering & Matrix Gas Renewables

This project, awarded in September 2024 with an 18-month execution window, is one of the most commercially structured efforts to date. Designed around 25 tonnes of biogenic waste per day to produce roughly 1 tonne of hydrogen, it operates under a ₹164-crore EPC and BOO (Build–Own–Operate) framework.

This is not a laboratory e xperiment but an industrial deployment attempt that will test feedstock logistics, continuous operations, and long-term economics of bio-hydrogen.

4. Agharkar Research Institute & Sentient Labs, Pune

Here the focus shifts from thermochemical routes to dark fermentation. Using untreated residues from paddy, wheat, or maize, without energy-intensive pre-processing, the system first generates hydrogen and subsequently produces methane in a two-stage process.

Early results indicate about 25% higher efficiency than conventional digestion, suggesting that biological pathways could complement gasification in specific agro-climatic contexts.

Why Policy Support Is Pivotal

These pilots are moving forward largely because of targeted public support. Agencies such as BIRAC and ANERT have played a catalytic role in de-risking early-stage innovation, enabling projects to transition from laboratory prototypes to field deployment.

At the state level, Punjab’s Green Hydrogen Policy is particularly significant. Punjab is a residue-rich state where crop burning has long been a public health crisis. By creating incentives for clean hydrogen production, feedstock aggregation, and off-take markets, the policy aligns air-quality goals with industrial decarbonisation, something few jurisdictions have managed to do coherently.

What is still missing at the national level, however, is a clear classification framework for “biogenic hydrogen” within India’s emerging certification architecture. Defining standards for lifecycle emissions, feedstock sustainability, and co-product accounting will determine whether this pathway scales or remains niche.

The Strategic Case for Biomass Hydrogen

India’s hydrogen strategy must rest on three pillars:

Electrolysis for large-scale green industry and exports.
Biomass pathways for waste management, rural energy, and distributed production.
Blended systems where bio-hydrogen complements renewable hydrogen in local clusters.

Biomass-to-hydrogen will not replace electrolysis. It will diversify it, making the transition more resilient, more inclusive, and more politically feasible. The opportunity is not merely technical; it is socio-economic. Every tonne of residue converted into hydrogen is a tonne not burned in fields, not decomposing into methane, and not burdening rural communities with pollution.

If India aligns innovation funding, state policies, and national standards, biomass hydrogen can evolve from scattered pilots into a durable pillar of the country’s clean energy future.

AM Green–Uniper Green Ammonia Offtake Signals a Major Milestone for India’s Green Hydrogen Exports

Wed, 14 Jan 2026 10:05:14 GMT

Building an India–Europe Green Hydrogen Corridor

AM Green, an anchor member of GH2 India, has signed a long-term offtake agreement with Germany-based energy company Uniper for the supply of up to 500,000 tonnes per annum of renewable ammonia from India. Among the largest green ammonia offtake arrangements announced to date, the agreement marks a significant step in positioning India as a reliable global supplier of green hydrogen derivatives.

The partnership strengthens the emergence of an India–Europe green hydrogen corridor, with renewable ammonia expected to play a critical role in decarbonising hard-to-abate sectors such as power generation, chemicals, and heavy industry. First deliveries under the agreement are expected to commence around 2028, subject to project development and commissioning timelines.

Advancing India’s Role in the Global Energy Transition

Long-term offtake arrangements of this nature are essential for translating ambition into execution, providing the demand certainty required to enable large-scale project development and cross-border clean energy trade.

The AM Green–Uniper agreement reflects growing international confidence in India’s renewable energy ecosystem, project development capabilities, and the policy framework supporting green hydrogen under the National Green Hydrogen Mission.

It also highlights India’s increasing relevance in meeting global demand for clean energy carriers.

Commenting on the development, leaders from both organisations, including Michael Lewis, CEO, Uniper, and Anil Kumar Chalamalasetty (Founder) and Gautam Reddy (CEO) of AM Green underscored the strategic importance of the agreement in establishing one of the first large-scale green ammonia supply corridors between India and Europe.

Reflecting on the broader policy and ecosystem implications, Shri Bhupinder Singh Bhalla, IAS (Retd.), Former Secretary, MNRE and Chair, Governance Board, GH2 India, noted that such agreements represent the kind of credible market signals required to scale India’s green hydrogen ambitions linking policy intent with commercial demand and investor confidence.

GH2 India Perspective

From GH2 India’s perspective, the AM Green–Uniper offtake demonstrates how India’s green hydrogen ecosystem is moving from early momentum toward market-linked outcomes. Agreements of this scale reinforce India’s export potential and highlight the importance of standards alignment, certification, and international collaboration.

GH2 India continues to support its m embers by:

Facilitating global partnerships and market access
Strengthening offtake readiness and export enablers
Supporting certification, standards alignment, and policy-linked growth

As India’s green hydrogen ecosystem evolves, transactions of this nature will play a key role in anchoring investment, accelerating project pipelines, and integrating India into the global green hydrogen economy.

Important Updates in India’s Green Hydrogen Landscape

Fri, 18 Jul 2025 12:02:15 GMT

The Ministry of New and Renewable Energy (Hydrogen Division) (MNRE) last month released a set of guidelines on setting up Green Hydrogen Hubs (GHH) and Hydrogen Valley Innovation Centres (HVIC) across the country, pursuant to the goals enlisted in the National Green Hydrogen Mission to boost business innovation around the green hydrogen

The Guidelines lay down a detailed roadmap for the development of the GHHs and the HVICs including objectives, implementation methodologies and authorities as well as expenditure schemes.

The Guidelines envision HVICs as ‘test beds’ or ‘living labs’ for facilitating innovations in green hydrogen across diverse fields, facilitating experiential learning and deriving insights from existing hydrogen pilot projects. They will also foreground business models, map out techno-economic viability of hydrogen projects and foster strategic partnerships between hydrogen producers and off-takers. Based on the outcome of the HVIC, regulatory framework and policies shall be framed subsequently to further accelerate the development of hydrogen-based projects and realise the goals under the NGHM. HVICs have also been tasked with developing the capacity to localise and integrate the entire green hydrogen value chain, generate demand, and secure uptake for end-use of the hydrogen applications. HVICs must also arrange for the acquisition of land for the project. The funds endowed for this will not cover land acquisition and setting up costs.

The guidelines further contemplate hydrogen hubs as an ecosystem of hydrogen producers, end-users, and adequate supporting infrastructure including storage, transportation, and processing facilities based around a particular geographical region. They may be located either close to ports or inland. Areas with clusters of refineries, fertilisers and other end-use industries also have been identified as preferred locations for hydrogen hubs.

The guidelines have set a target production capacity of 100000 Metric Tonnes Per Annum of green hydrogen per hub. All key resources of the hydrogen hubs, including infrastructure and project development, will be mapped under the PM Gati Shakti portal.

MNRE has further outlined the details of the implementation of these guidelines in its Annexure. The authority to oversee the implementation of the HVIC will be a Scheme Implementing Agency (SIA) of the Department of Science and Technology while a SIA nominated by MNRE will be responsible for the execution of the GHH.

While the guidelines provide an impetus for innovation driven developments in India’s green hydrogen economy, a few causes of uncertainty have also arisen in the recent past.

The Solar Energy Corporation’s (SECI) announced the cancellation of the tender for setting up green hydrogen hubs on July 4, 2025, and stated that all the tender management fees or document fees submitted thus far will be refunded. Bidders have been advised to email the concerned persons at SECI with the required documents seeking the refund before July 20, 2025.

While no official reason has been released by the government on this matter yet, this has raised questions about the future trajectory of India’s green hydrogen goals as we draw near 2030.

A unified financial institution for a unified maritime vision

Fri, 04 Jul 2025 12:16:21 GMT

Last week the Hon’ble Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal unveiled the Sagarmala Finance Corporation Limited (SMFCL), the first of its kind Non-Banking Financial Company (NBFC) exclusively for the maritime sector. In its previous avatar as the Sagarmala Development Company Limited, SMFCL was the key implementing entity for the Sagarmala Programme, encompassing project development and formulation to fund raising and Coastal Economic Zones master plan, among others.

This remodelling comes as a response to the long-standing demand of the maritime industry for a sector specific financing institution and is in alignment with India’s goal to emerge as a global maritime leader under the Amrit Kaal Vision 2027.

On account of the maritime industry being a capital-intensive sector which is slow to yield returns with regulatory strictures, investment prospects are often limited. This risky and yet niche sector struggled to procure private lending from banks and private investors and thus the need for a unified financial institution dedicated just to the marine industry was reinforced.

On June 19, 2025 SMFCL was formally registered as an NFBC with the Reserve Bank of India (RBI) and is categorised as a Mini Ratna, Category I, Central Public Sector Enterprise. With the Tier 1 capital estimated at Rs 680 crore, SMFCL has the capacity to offer bigger loans with consortium partners, valuing up to Rs 3400 crores.

With the objective of bridging the financial gaps in the maritime industry, SFMCL will provide financial support towards empowering ports, MSMEs, startups, and maritime educational institutions. As a dedicated financing body, SFMCL is poised to usher in significant transformation in the maritime sector and accelerate industry wide growth, sustainability and innovation.

It will also extend to strategic sectors like shipbuilding, renewable energy, cruise tourism, and maritime education. Overall, by enabling access to a focused financial opportunity, SFMCL will leverage efficiencies and inclusive development in the maritime sector, thus propelling India towards global maritime leadership.

Built akin to other successful development financial institutions in India like the Indian Railway Finance Corporation for the railways, SMFCL comes with an expanded funding horizon and several other essential services. These include blended finance instruments like equity, subordinated debts, debts etc. It will also support Private Public Partnerships (PPPs) in financing logistics corridor, coastal infrastructure among others.

SMFCL’s founding is a critical step towards steering India’s maritime sector at par with the global standards. The European Commission launched the Ship Financing Portal in July 2024, serving as a centralized repository of financing products for the EU-based maritime sector. This is complemented by European Investment Bank’s (EIB) co-financing maritime sector project. Similarly, in Japan, the SMBC Group operates a global maritime finance division, leveraging its strong balance sheet and institutional dedication to the shipping industry to provide long-term support.

SMFCL is not only likely to help the maritime industry overcome the financial bottlenecks but also will greatly boost the green transition in the maritime industry, as envisioned in India ’Gateway to Green roadmap. Streamlined funding will help amplify green hydrogen capacity at ports and bunkering stations, and enable shore power infrastructure, etc. This brings in the much-needed transformation to the erstwhile fragmented investment space for the maritime industry and enables SMFCL to cater to the unique capital requirements of the maritime and shipping sector.

Electrical Components in Green Hydrogen Production: Why they matter?

Fri, 04 Jul 2025 11:42:52 GMT

India has committed to producing 5 million tonnes of green hydrogen per year by 2030, supported by approximately 125 GW of new renewable generation capacity (CEEW, 2024). Yet behind this high-profile ambition lies a less discussed but arguably more decisive factor: the vast electrical infrastructure required to turn fluctuating renewable electricity into the stable, precisely controlled DC power that electrolyzers need. This is the real machinery that converts photons and winds into hydrogen molecules, and it is expensive, complex, and often invisible in public debates (Iris CNR, 2024).

Today, India’s green hydrogen costs hover between ₹397–₹560 per kilogram ($4.6–$6.7/kg) , which is two to three times the cost of grey hydrogen produced from natural gas. Nearly 95% of this cost is tied to capital investment and financing , and within that, 30–50% comes from electrical systems alone. For a single 100 MW PEM electrolyzer project , that means ₹1,000–1,200 crore ($120–145 million) just in transformers, rectifiers, converters, switchgear, sensors, and control systems (CEEW, 2024). In other words, the electrons are not only expensive because renewable power isn’t free, but they are also expensive because they must be processed, stabilized, and delivered with extraordinary precision.

Hydrogen electrolysis is an energy-intensive process, requiring 50–55 kWh/kg H₂ including losses (Iris CNR, 2024). Of this, power conversion losses typically account for 1–2 kWh/kg, equivalent to 2–4% of total energy input.

Technical benchmarks help illustrate what’s at stake:

Thyristor-based SCR rectifiers achieve >98.5–99% efficiency at full load but suffer poor power factor (<0.7) and up to 30% total harmonic distortion (THD) if not mitigated with filters.
Active front-end IGBT converters deliver 96–97% efficiency but maintain near-unity power factor and <5% THD (ResearchGate, 2024).
A 100 MW electrolyzer operating 7,000 hours/year will consume 700 GWh/year of AC input. If conversion losses are reduced from 4% to 2%, the plant saves 14 GWh/year, translating to ₹70–85 crore/year at industrial tariff rates (~₹5–6/unit).
Ripple reduction is equally critical: PEM stacks degrade faster under >5% DC ripple. High-frequency interleaved DC-DC converters can cut ripple below 1%, extending stack life from ~60,000 to ~80,000 hours (Iris CNR, 2024).

In Germany, the REFHYNE project demonstrated how advanced electrical engineering can transform operations. There, a 10 MW PEM electrolyzer dynamically ramps its load in less than 30 seconds , seamlessly participating in grid-balancing markets while maintaining stringent power quality under IEEE 519 standards . (REFHYNE, 2022)

For India, achieving similar performance will require a shift toward modular, standardized designs . The strategy pioneered at Saudi Arabia’s NEOM megaproject, containerized 5–20 MW blocks of rectifiers, transformers, and controls that scale simply by replication, can unlock enormous efficiencies. If each module delivers >99% rectifier efficiency and power factors above 0.95 , scaling from 20 to 200 MW becomes a process of adding modules, not re-engineering the system. India’s industrial base is well-positioned for this approach. The chlor-alkali sector already produces high-current rectifiers and transformers, but the country lacks consistent standards tailored to electrolyzers (REGlobal, 2024). Establishing these norms through the Bureau of Indian Standards could streamline procurement, cut design timelines, and make financing easier.

Grid integration remains another critical frontier. India’s natural advantage of 300+ clear days a year in many regions, and world-leading wind resources also brings volatility. Solar output can swing by ±50% within minutes due to clouds, and grid frequency events exceeding 0.5 Hz deviations occur more than ten times a year. Managing these fluctuations requires not just rugged electrolyzer stacks but sophisticated power electronics and storage buffers. Maximum Power Point Tracking (MPPT) converters can improve renewable utilization by 5–10% , while battery systems sized at 15–20% of electrolyzer capacity can buffer variability and protect equipment from sudden voltage dips (Iris CNR, 2024).

India has already taken early steps in this direction. In Gujarat, Adani’s 5 MW off-grid pilot project uses solar power paired with a battery energy storage system to deliver consistent, high-quality DC electricity. The project has demonstrated that even in fully off-grid configurations, modern converters and smart controls can ensure stable hydrogen output (PV Magazine, 2025). Scaling this experience to 100 MW and beyond, however, will require strong policy support and incentives for hybrid system integration.

Safety is the other pillar that cannot be overlooked. Hydrogen is flammable in concentrations from 4–75% and has an auto-ignition temperature of around 560 °C . In Europe, ATEX and IECEx standards have established clear rules for explosion-proof equipment and rigorous zoning since the early 2000s (IECEx, 2021). In India, regulatory frameworks are still evolving. The Petroleum and Explosives Safety Organisation (PESO) and the Oil Industry Safety Directorate have begun adapting global norms, but many project developers are learning that even a small unapproved UPS cooling fan can create unacceptable risks, an oversight that forced shutdowns in UK pilots.

Looking ahead, digital technologies can play a decisive role in bridging these challenges. India has a globally recognized IT sector and deep experience in advanced analytics. There is a unique opportunity to develop digital twins for electrolyzer electrical systems , creating virtual replicas that simulate converter performance, predict component wear, and schedule maintenance before failures occur. A 100 MW hydrogen plant in the Desert could one day be monitored by AI algorithms that continuously optimize energy flows and detect anomalies. With the right investments, India could become not just a hydrogen producer, but an exporter of advanced control and monitoring solutions.

To seize this opportunity, India needs a clear playbook. First, it must establish BIS standards for 5–20 MW modular electrical blocks , with specifications on efficiency, power factor, and safety. Second, policy incentives like Production-Linked Incentives should be extended to cover SiC-based converters, explosion-proof components, and solid-state transformers. Third, R&D funding under the National Hydrogen Mission should support pilots that demonstrate AI-enabled digital twins and predictive maintenance. Finally, India must invest in human capital, training at least 10,000 engineers in hydrogen plant electrical systems over the next five years.

The story of India’s hydrogen transformation is often told as a race to install solar panels and build electrolyzers. But the real success will be determined, if India can build a system that delivers >97% end-to-end efficiency , <5% THD , and >98% uptime while meeting world-class safety standards, it will be well on the way to reducing hydrogen costs from $5–6/kg today to $1.5–2/kg in the coming decade.

It may sound like engineering detail, but in reality, it is a strategic imperative. With careful planning, targeted incentives, and a relentless focus on quality, India can ensure that its green hydrogen ambitions rest on a foundation as solid as the renewable electrons themselves.

Sources

CEEW. (2024). How Can Hydrogen Electrolysers Be Made in India? https://www.ceew.in/sites/default/files/how-can-india-indigenise-and-boost-domestic-hydrogen-electrolyser-manufacturing.pdf
Iris CNR. (2024). Electrolysis Technologies for Hydrogen Production . https://iris.cnr.it/retrieve/0ebd7a0a-d063-48ca-87df-d8085e3e2842/manuscript.v9_rev_IRIS.pdf#:~:text=There%20are%20different%20technologies%20for,21
Akul Raizada, LinkedIn. (2024). How India Can Scale Electrolyzers for Its 5 MMT Green Hydrogen Goal. https://www.linkedin.com/pulse/how-india-can-scale-electrolyzers-its-5-mmt-green-hydrogen-raizada-vrwte/
Nature. (2024). Power Electronics for Renewable Integration . Nature Energy , 7(8), 710–712. https://www.nature.com/articles/s41598-024-76191-6?error=cookies_not_supported&code=7ff2f2c8-8f3b-42e5-a72d-e089c65ce009#citeas
PV Magazine. (2025). Adani’s 5 MW Off-Grid Hydrogen Pilot . https://www.pv-magazine.com/2025/06/24/adani-commissions-off-grid-5-mw-green-hydrogen-plant/#:~:text=Kutch%2C%20Gujarat,powered%20hydrogen%20production
REFHYNE. (2022). Project Overview . https://refhyne.eu
IECEx/IEC Standards for Hydrogen https://etech.iec.ch/issue/2023-06/safety-for-hydrogen#:~:text=IECEx%20certification%2C%20which%20has%20been,by%20enabling%20the%20required%20robustness
MDPI (2024). A Comprehensive Review on the Power Supply System of Hydrogen Production Electrolyzers for Future Integrated Energy Systems. Energies, 17(4), 935. https://www.mdpi.com/1996-1073/17/4/935#:~:text=where%20the%20electrolyzer%20constructs%20the,power%20supply%20in%20the%20future

Netherlands Releases Draft Legislation to Implement RED III Targets in Transport Sector

Fri, 27 Jun 2025 13:41:02 GMT

On 24 June 2025, the Dutch Ministry for Infrastructure and Water Management released the draft “Implementation of RED III” regulation to transpose the EU’s Renewable Energy Directive III. This draft outlines obligations for renewable energy uptake in the transport sectors, land, inland shipping, and maritime, while notably excluding aviation. This is aimed at eschewing instances of double counting of renewable energy contributions from raw materials enlisted under Annex IX of RED II. It follows an EU Commission request to comply by 25 May 2025 on setting designated acceleration zones and further aligning with EU timelines (implementation beginning in 2026)

The proposal mandates a phased increase in the share of renewable energy in transport fuels, from 14.4% in 2026 to 27.1% by 2030, using a GHG-based accounting system referred to as Energy Reduction Units. Obligated suppliers, with overall consumption more than 500,000/year, will be required to surrender EREs annually. While EREs from the land transport sector can be used to meet shipping obligations, the reverse will not be permitted.

The draft sets a cap on crop-based biofuels at 1.2% of total energy for the land sector, consistent through 2030. For biofuels based on Annexe IX Part B feedstocks such as used cooking oil and animal fats, the land sector is capped at 4.29%, inland shipping at 11.07%, and the maritime sector is excluded altogether.

The Dutch government has also opted to decouple the EU-wide 5.5% advanced biofuels and 1% RFNBO sub-targets, allowing them to be met separately. Renewable hydrogen used in refineries will count towards a separate RAREs (Refinery Assigned Reduction Effort) obligation, offering another pathway for compliance.

A hydrogen “correction factor”, which would reduce the creditable value of hydrogen as a fuel, will not be applied in the near term, and may only be introduced after 2030, reflecting the government’s commitment to support the direct use of hydrogen.

To maintain fuel quality standards, the Netherlands will retain its current B7 biodiesel blend limit, despite EU provisions allowing up to B10, citing concerns about compatibility with older diesel vehicles.

The existing Dutch renewable fuel credit system, known as HBEs, will be converted into EREs effective from 1 April 2026. Credit banking will be allowed, with a limit of 10% for obligated parties and 4% for registered entities.

The phased renewable energy targets and crediting mechanisms provide regulatory clarity for investors and market participants. For India, the clear caps on conventional feedstocks, combined with rising RFNBO and advanced biofuel targets, signal a growing demand for renewable hydrogen and synthetic fuels within the EU. This may make it exigent to re-adjust our focus from the existing cooking oil and animal fat markets towards investments in advanced biofuels. The delay in applying a correction factor for hydrogen further strengthens the case for direct hydrogen use, particularly in refining applications. These provisions align well with India’s strengths in low-cost renewable hydrogen production and create a scope for technology transfer, supply partnerships, and strategic advisory roles targeting Europe’s evolving clean fuels market.

This draft regulation provides clarity on the Netherlands’ implementation approach and introduces a structured compliance mechanism that emphasizes the role of advanced biofuels and renewable hydrogen in transport decarbonization. For emerging producers and exporters of renewable hydrogen and e-fuels, including Indian developers, this framework offers regulatory signals worth monitoring closely.

India and Saudi Arabia's Green Hydrogen Ambitions - A Comparative Study

Wed, 25 Jun 2025 12:54:19 GMT

Saudi Arabia is investing heavily to become a global hydrogen export hub. Under its National Hydrogen Strategy, launched in 2021 as part of Vision 2030, the Kingdom aims to become one of the top three global hydrogen producers by the next five years. Its $8.4 billion NEOM plant, a 4 GW solar wind electrolysis, is designed to produce 600 tons of green hydrogen per day (roughly 1.2 million tonnes of ammonia per year), with its first output around 2026.

India’s National Green Hydrogen Mission (launched 2023) sets similarly grand goals of producing 5 million tonnes per year by 2030. Meeting this requires the order of 125 GW of new renewable capacity. The government has committed large subsidies, roughly ₹8 lakh crore, but policy aims to reduce them toward $1.5/kg by 2030 (Raizada, 2025; Sawhney, 2024). However, India faces resource and infrastructure challenges. Land, water and grid limitations could bottleneck expansion (Gili & De Blasio, 2024).

To address these constraints and enhance supply security, India is actively building hydrogen partnerships, with Saudi Arabia emerging as a strategic collaborator. For example, the proposed India, Middle East, Europe corridor would pipe H₂ via UAE, Saudi, Jordan, etc., linking Indian supply to European markets. An April 2025 summit between Prime Minister Modi and Crown Prince MBS explicitly committed to joint hydrogen R&D and trade facilitation (SolarQuarter, 2025). This bilateral hydrogen cooperation is grounded in shared goals of scaling clean energy, developing resilient infrastructure, and enhancing grid and transport connectivity.

Infrastructure and cost comparisons underscore these dynamics. Saudi Arabia’s advantage comes from extremely cheap power and capacity factors: analysts project Saudi production costs as among the world’s lowest. By contrast, India’s higher capital costs make domestic green H₂ significantly more expensive. Transport adds cost too, converting and shipping hydrogen can add on the order of $1 or $2/kg (Hydrogen Council 2021), narrowing price gaps. India must therefore build ports, storage and pipeline connections for imports or dramatically expand its grid for in-country H₂, a complex engineering and fiscal task. Saudi’s scale hence puts downward pressure on global H₂ prices, which Indian policymakers must account for.

Strategically, the relationship is not defined by the NEOM project alone. It includes broader policy alignment, clean-tech collaboration, and skilled labour partnerships . It is true global buyers (e.g. in Japan/Korea) have bought blue hydrogen at $1.7/kg, undercutting green hydrogen (Singh, 2024). India’s exporters worry without guarantees they may lose out. However, cooperation, not competition, defines the bilateral narrative. India and Saudi both emphasize hydrogen storage/transport collaboration and circular carbon approaches. Observers argue that leveraging Saudi supplies (through offtake agreements or joint ventures) could improve India’s energy security and accelerate its own transition (Raizada, 2025). With adequate safeguards (diversifying import sources, ensuring domestic build-out), Saudi hydrogen can act as a catalyst, pushing India to scale up faster while supplying low-carbon energy, rather than as an insurmountable competitor (Gili & De Blasio, 2024; Raizada, 2025).

Saudi Arabia’s hydrogen export push, embedded in its national hydrogen roadmap, is not just a competitive force but a critical input to India’s hydrogen strategy. The Kingdom’s scale clearly adds competitive pressure, but India is framing the relationship as partnership, not rivalry. By securing strategic deals (e.g. the IMEC pipeline concept) and balancing imports with domestic capacity expansion, India aims to turn Saudi hydrogen into an opportunity. In policy terms, Saudi Arabia’s plans motivate India to accelerate its National Hydrogen Mission but do so in a way that leverages mutual interests in energy security and clean tech collaboration (Sawhney, 2024; Singh, 2024). The prevailing view is that, with proper planning, Saudi hydrogen will spur India’s transition rather than derail it.

References (APA):

Abuljadayel, F. (2022, September 29). Saudi green hydrogen production costs could be lowest in the world: KAPSARC . Arab News .

Council on Energy, Environment and Water. (2024). Augmenting the National Green Hydrogen Mission: Assessing potential policy support in India .

Gili, A., & De Blasio, N. (2024, March 26). India – The New Global Green Hydrogen Powerhouse? Belfer Center, Harvard Kennedy School.

Government of India, Ministry of New & Renewable Energy. (2024). National Green Hydrogen Mission . Press Information Bureau.

Raizada, A. (2025, May 5). India’s Green Hydrogen Strategy in Action: Policy actions, market insights, and global opportunities . IFRI.

Saudi Energy Consulting. (2025, March 12). Saudi Arabia to export 200k tons of green hydrogen to Europe by 2030 .

Sawhney, R. (2024, May 1). Decoding India’s Green Hydrogen Potential . Observer Research Foundation (ORF) America.

Shah, R. (2025, April 24). Saudi Arabia, India strengthen ties on green hydrogen... SolarQuarter .

Singh, R. (2024, May 24). India seen signing more renewable ammonia supply deals, policy clarity awaited . S&P Global Commodity Insights.

Guidance Note by the Directorate General of Shipping on IMO’s Net Zero Framework

Thu, 19 Jun 2025 13:36:46 GMT

Earlier this May, the Directorate General of Shipping released a guidance note to carve out a roadmap for India to comply with Marpol Annex VI adopted this year at MEPC 83. This note explains the key provisions of Marpol Annex VI and aims to build preparedness among the Indian Shipping industry with respect to the upcoming regulations under IMO’s framework.

GFI Compliance

Adopted at MEPC 83, the Greenhouse Gas Fuel Intensity (GFI) measure is a mechanism to progressively reduce greenhouse gas emissions from ships above 5000 GT. Marpol Annex VI has set specific GFI limits which ships on international voyages must follow or face penalties. The GFI is set to come into force in March 2027.
Having considered the three different methods under the GHG pricing mechanism, including a flat levy where ships will be uniformly penalised at $100 per tonne of CO2 emitted; a higher penalty of $150 per tonne of CO2 emitted but the penalty redistributed among different sectors for climate vulnerable countries through the Small Island Developing States (SIDS) proposal; and, the Two-tier GFI mechanism which is a performance linked system penalising ships with high GFIs while rewarding those with GFI below the target levels, the later was adopted through a majority vote at the MEPC 83.
The two tier GFI mechanism entails, eligible ships to abide by two levels of targets; a) A Base Target which aims for decarbonisation at 4% by 2028 and 30% by 2035 and b) The Direct Compliance Target aiming at decarbonisation at 17% by 2028 and 43% by 2035. This mechanism levies penalties in the form of ‘remedial units’ for failure to meet the targets. For failing to meet the base target, a higher remedial unit purchase worth $380 per tonne of CO2 is set out while a failure to meet the direct compliance target, ships must purchase remedial units worth $100 per tonne of CO2.
Ships which surpass these targets can also generate ‘Surplus Units’, which can be used to trade with other ships in lieu of other benefits; or banked for future use; or even used to qualify for the IMO Net Zero Award.
The GFI mechanism also lays down a plan for redistribution of the funds generated through the penalties. These will be held under the IMO Net Zero Fund which can be encashed for financial incentives to well performing ships, assist developing countries in their climate initiatives etc.

India’s Position

The Note elaborates on India’s position on the GFI mechanism :

The flexible pricing mechanism under GFI benefitted India by firstly, reducing the cost impact from $1.5- $2.4 billion annually to under $100 million, compared to a flat levy structure. It incentivises adoption of clean technologies while being well aligned with India’s climate transition strategies.
The GFI mechanism however does not impact Indian fleet much. Only 13.9% of Indian ships come under the purview of the GFI mechanism.
The GFI mechanism is expected to increase India’s compliance cost by $ 87–100 million annually by 2030 which is well within the industry operating margins.
This also promotes synchronisation of India’s projected production capacity of green ammonia and methanol by 2030 with the eligibility criteria of the IMO GFI reward system. This will also boost India’s export potential and investment in clean energy.

Action Needed

Ships which are eligible under the IMO framework must annually report fuel consumption, voyage data, and carbon intensity metrics through the standardized IMO Data Collection Systems.
Aligning ports infrastructure through improved shore power, digital GHG inspection systems, and clean fuel availability to the GFI system will amplify Indian ports’ position as a green bunkering hub.
Indian seafarers must have their capacities and awareness built on operational knowledge of GFI reporting, fuel lifecycle characteristics, remedial unit tracking, and voyage planning for emission optimization
Indian ships involved in international trade must factor GHG compliance in order to reduce long-term freight inflation risks.

While India retains the sovereign right over the enforcement of Marpol Annex VI, as a state party of IMO, it will be under the legal obligation to ensure the eligible ships remain compliant with GFI mechanisms. This will also be advantageous for India from a fiscal standpoint and reinforce India’s influence in shaping global governance of the green shipping landscape.

India - Japan's deepening maritime ties rudders forth new prospects in Green Shipping

Tue, 10 Jun 2025 12:48:11 GMT

India and Japan have had a long standing kinship across the realms of business, politics and, art and culture. In the recent times, the maritime sector has emerged has one of the key areas of collaboration between them. From the Free and Open Indo-Pacific (FOIP) vision to the latest high level bilateral meetings between dignitaries from the two countries, India and Japan have fostered a robust relationship in facilitating growth and innovation in the maritime industry. Some of the key milestones in the Indo-Japan maritime strategy are :

Free and Open Indo-Pacific Vision, 2020 : Both countries share the vision to nurture the pillars of FOIP in building economic capabilities; improving maritime security and connectivity; promoting sustainable development and collective security.

QUAD Framework : As members of the Quadrilateral Security Dialogue (QUAD), India and Japan have mutually committed to strengthening maritime resilience and security through collaborative naval drills, interoperable disaster response mechanisms etc.

India- Japan Clean Energy Partnership , 2022 : A strategic initiative launched to jointly promote both countries' decarbonisation efforts through pilot projects as well as research and development projects in green hydrogen and green ammonia-based fuels, carbon recycling technologies etc.

The latest highlight in the chain of Indo-Japan maritime ties, is the High-Level Bilateral Meeting held last week at Oslo, Norway between Shri Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways, India and Mr. Terada Yoshimichi, Japan’s Vice Minister of Land, Infrastructure, Transport & Tourism. The meeting re-affirmed both countries' commitment to mutually boost investment and development of sustainable fuels, digitisation of ports, upskilling and employment opportunities for seafarers among other discussions.

Smart Islands : Appreciating Japan's expertise in developing island territories, India invited Japan's cooperation in the quest to transform Lakshadweep and Andaman and Nicobar islands into Smart Islands.

Clean Energy Hubs : The Ministers of both the countries discussed greenfield investments like the pilot project, Imabari Shipyard in Andhra Pradesh and the prospects for development of more clean energy hubs jointly between leading Japanese shipbuilding companies and Indian yards.

Other infrastructural and economic collaborations : Both countries assessed potential MoUs between relevant Japanese stakeholders and Cochin Shipyard Limited and other Indian maritime educational institutes and public agencies. Further, the feasibility of integrating India's 154000 trained seafarers in Japan's maritime missions was deliberated upon. Finally, Shri Sonowal invited Japan to partner in the development of the National Maritime Heritage Museum in Lothal, Gujarat.

India has set a target of five trillion yen as investment from Japan by 2027 and the high-level meeting evinced substantial and sustainable progress in the bilateral maritime ties between India and Japan going forward.

This meeting comes at an opportune moment in the wake of the World Hydrogen Asia Conference scheduled between July 8th and July 10th, 2025 at Tokyo, Japan. As supporting partners to the conference, GH2 India will be steering insightful discussions and follow ups on securing Asia's sustainable future with hydrogen and low carbon fuels.

Beyond the National Green Hydrogen Mission: India’s Expanding Green Hydrogen Incentive Landscape

Tue, 13 May 2025 06:19:07 GMT

State-wise distribution of green hydrogen incentive support in India (CEEW, 2025)

India’s green hydrogen incentive ecosystem now stands at over USD 60 billion in potential support, a figure that dramatically expands the country’s clean energy ambitions beyond the headline-grabbing National Green Hydrogen Mission (NGHM). A recent study by the Council on Energy, Environment and Water (CEEW) quantifies this combined support, noting that state- and central-level policies embed nearly ₹5.05 lakh crore in incentives, approximately 26 times the NGHM’s budget of ₹19,744 crore (CEEW, 2025, p. 4).

India has set some of the world’s most ambitious green hydrogen targets and is rapidly backing them with policy muscle. The National Green Hydrogen Mission aims to drive both demand and supply. Complementing this, the Ministry of Power’s Green Hydrogen Policy eliminates interstate transmission charges and simplifies renewable sourcing for green hydrogen projects.

Crucially, this central push is amplified by states. Authors of the report note that state-level policies embed around ₹5.05 lakh crore in incentives, 26 times the NGHM budget (CEEW, 2025, p. 4). In effect, India has created a vast green hydrogen subsidy pool. Seven states, Odisha, Maharashtra, Tamil Nadu, Uttar Pradesh, Rajasthan, Andhra Pradesh, and Gujarat, account for over 90% of this ecosystem (CEEW, 2025, p. 5).

The structure of these incentives matters. Around 62% target power costs through tariff, transmission, and duty waivers. The remaining 38% supports capex and finance via capital subsidies and interest subvention (CEEW, 2025, p. 4). This dual-layered design improves both upfront project viability and long-term economics. For instance, Maharashtra offers a ten-year waiver on intra-state transmission charges, while Gujarat and Tamil Nadu focus on non-power subsidies through industrial policies.

State-level policies also show notable diversity in approach. Odisha stands out with an estimated ₹1.25 lakh crore (USD 15 billion) in incentives, driven by ₹3/unit power tariff rebates and a 30% capital subsidy for green hydrogen projects (CEEW, 2025, p. 26). Rajasthan, meanwhile, is the only state where non-power incentives exceed power-related ones, anchored in a production target of 2 MTPA and deep solar capacity (CEEW, 2025, pp. 4, 32). Maharashtra blends both, offering tenures of 10 to 20 years for duty and wheeling charge waivers, and direct support for hydrogen-based mobility (CEEW, 2025, p. 27). These variations underscore that states are not merely mirroring the NGHM but actively tailoring strategies based on industrial strengths, land availability, and RE profiles.

India’s edge lies in its cheap renewable energy, but green hydrogen still costs ~$3.5–5/kg, compared to ~$2/kg for grey hydrogen. Current incentives could cut this gap by up to $1.8/kg (CEEW, 2025, p. 6). Globally, the U.S. offers up to $3/kg in tax credits, the EU has committed €3 billion via its Hydrogen Bank, and Australia’s Hydrogen Headstart provides A$2 billion in grants. While others favour tax breaks or auctions, India’s direct fiscal support offers immediate certainty, making it a serious player in the global hydrogen race.

India has drafted a bold playbook that competes with other peers in the sector, but policy alone won't ensure success.

The real test lies in execution. Rapid project clearances, waiving power banking charges, reducing GST on electrolysers, efficient Centre–State coordination, and streamlined access to affordable renewable energy are now crucial. By swiftly addressing these challenges, Indian stakeholders can capitalise on their ambitious incentive framework and local advantages to emerge as a global leader in green hydrogen. Experts suggest these steps could cut green hydrogen prices by another $2/kg, bringing them within striking distance of grey. The window of opportunity is open, but policymakers and industry must move decisively to seize it.

Reference :

Council on Energy, Environment and Water (CEEW). (2025). Augmenting the National Green Hydrogen Mission: Assessing the Potential Financial Support through Policies in India. New Delhi: CEEW. Retrieved from https://www.ceew.in/publications/green-hydrogen-incentives-report

India accelerates Hydrogen mobility with new pilot projects

Mon, 17 Mar 2025 10:44:16 GMT

Government-backed initiative to deploy 37 hydrogen-powered vehicles

India is taking a decisive step toward cleaner transportation with the launch of five pilot projects under the National Green Hydrogen Mission. These projects will deploy 37 hydrogen-powered buses and trucks, 15 using fuel cells and 22 with hydrogen internal combustion engines, across key routes in the country. Nine hydrogen refuelling stations will also be set up to lay the groundwork for a transition to clean mobility.

The selected routes for these pilot projects include the following-

1. Greater Noida – Delhi – Agra

2. Bhubaneshwar – Konark – Puri

3. Ahmedabad – Vadodara – Surat

4. Sahibabad – Faridabad – Delhi

5. Pune – Mumbai

6. Jamshedpur – Kalinga Nagar

7. Thiruvananthapuram – Kochi

8. Kochi – Edappally

9. Jamnagar – Ahmedabad

10. NH-16 Visakhapatnam – Bayyavaram

Major industry players like TATA Motors, Reliance Industries, NTPC, Ashok Leyland, and Indian Oil have been included to execute these projects. The Government of India has allocated approximately ₹208 crore to support these initiatives which are to be operational within the next 18 to 24 months. This move is more than just a pilot, it is a test for India’s hydrogen ambitions.

These pilot projects can pave the way for a cleaner energy future and are a crucial test for India’s hydrogen ambitions under the National Green Hydrogen Mission, which aims to position the country as a global leader in hydrogen technology, reduce fossil fuel dependence, and cut emissions. If successful, these pilots could pave the way for wider adoption of hydrogen-powered mobility across India’s transport network.

India’s hydrogen mobility landscape is also expanding with the help of private and state-led projects. The Leh Hydrogen Transport Project, launched by NTPC, has already introduced fuel cell electric buses at an altitude of 11,500 feet, demonstrating hydrogen’s resistance in extreme conditions. Moreover, the Indian Railways has announced plans to deploy hydrogen powered Vande Bharat trains by 2026. The Kochi and Visakhapatnam ports are also being developed as hydrogen bunkering hubs to support the decarbonization of India’s maritime sector.

On a global scale, India’s initiatives align with broader trends of Asia, Europe, and North America. Japan has already deployed over 5,000 fuel cell buses and taxis, while South Korea is aiming for 30,000 hydrogen trucks by 2035 (IEA, 2024). Germany and California are leading the charge in hydrogen rail, with Germany’s Coradia iLint train fleet covering 100,000 km on hydrogen fuel and California committing $3 billion to hydrogen freight trucks (Hydrogen Council, 2024). However, the key challenge remains cost parity with conventional fuels, a milestone that can be achieved only through scale, infrastructure expansion, and policy incentives.

India’s hydrogen mobility ambitions could reshape its energy landscape with the right investments and offer an alternative to fossil fuels. The question now is not whether hydrogen will play a role in India’s transport future, but how quickly it can scale.

Review of REN21 latest report on the global state of renewables

Wed, 28 Aug 2024 06:45:48 GMT

The development and progress of renewables is at the very core of the deployment of large-scale green hydrogen. Renewable energy is a huge cost in green hydrogen projects and production. Increase in efficiency and reduction in costs for renewable energy technologies will play a huge role in making green hydrogen competitive. The REN21 Global Status Report 2024 is presenting a sobering analysis of where we currently stand in the fight against climate change. Despite significant strides in technology, investments, and policy commitments, the pace of transition is not yet aligned with the ambitious goals set by international agreements, such as the Paris Agreement. The report clearly indicates that although momentum behind renewable energy is strong, critical gaps remain that must be bridged to secure a sustainable, low-carbon future.

Investments is a critical area where more is required. The global investment in renewable energy reached USD 622.5 billion in 2023, from USD 576 billion in 2022. However, approximately USD 1,300-1,350 billion needed annually by 2030 to meet the Paris Agreement's targets. This gap is alarming, given the urgent need to expand renewable energy capacity, modernize energy grids, and integrate advanced technologies like energy storage and renewable hydrogen. The uneven distribution of this investment, with much of it concentrated in a few regions, further exacerbates the challenge, particularly for developing countries that struggle to attract the necessary capital.

The financial pressures on the renewable sector are compounded by rising costs. These increases have led to the cancellation or delay of several projects, highlighting the delicate balance between ambition and affordability. The growing demand for critical minerals, essential for renewable technologies, has also triggered concerns about supply shortages, price volatility, and environmental degradation. The price of these minerals surged by over 30% in 2022, further straining the sector. The cost of renewable hydrogen has increased by higher labour and material costs, increase in the cost of capital of 3-5% and prices for renewable power.

Despite the rapid growth of renewable energy, fossil fuels continue to dominate the global energy mix, hampering efforts to reduce emissions. In 2022, global energy-related CO2 emissions rose by 1.1%, reaching 37.5 billion tonnes. Although renewable energy accounted for 86% of new power capacity additions in 2023, the overall transition is not happening fast enough to meet growing energy demands and reduce emissions. Modern renewables still represent only 13% of the global total final energy consumption (TFEC), indicating that much more needs to be done.

Development finance plays huge role in supporting renewable energy, especially in low-income countries where access to energy remains a significant challenge. Yet, the report highlights that development finance for renewable energy is insufficient and unevenly distributed. While finance for renewable generation projects globally has more than doubled from USD 3.5 billion in 2013 to USD 7.85 billion in 2022, the bulk of this is in the form of loans or equity investments, with grants representing only 35% of total government-driven assistance. Moreover, despite multilateral development banks adopting policies that exclude support for fossil fuels, fossil gas remains an aid recipient, with USD 1.9 (20%) billion disbursed for non-renewable energy projects in 2022.

In response to increasing pressure from investors, regulators, and the public, many oil and gas companies have started to invest in renewable energy. In 2023, oil and gas majors allocated around USD 17 billion to renewable energy projects. While this represents a small fraction of their overall capital expenditure, it marks a significant shift in strategy as these companies seek to diversify their portfolios and reduce their carbon footprints. Still, the scale of investment by oil and gas companies in renewables remains modest compared to the continued investment in fossil fuel exploration and production.

On the policy front, while 151 countries have set net-zero targets and 90 countries are implementing nationwide renewable energy targets, the gap between policy ambitions and on-the-ground implementation remains significant. For example, the European Union has set ambitious targets for renewable energy in its energy mix by 2030, but achieving these targets requires substantial policy reform, infrastructure investment, and technological development. Currently, only China is on track to meet its renewable energy target of 28% by 2030. Renewable hydrogen gained policy attention during 2023, with 41 countries having in place a renewable hydrogen strategy or roadmap by year’s end. Despite rising policy attention, renewable hydrogen deployment has lagged globally due to high production costs and weak demand.

Trade tensions and protectionist policies are also becoming significant hurdles in the global trade landscape for renewable energy. For instance, tariffs on solar panels imported from China by the United States have affected the global supply chain, raising costs for solar energy projects. Similarly, the European Union's efforts to boost local production of renewable energy technologies could lead to trade disputes and disrupt the global market.

In sectors like agriculture, transport, buildings, and industry, the integration of renewable energy remains slow. Agriculture, responsible for 20-30% of global greenhouse gas emissions, has only seen limited adoption of renewable sources. The transport sector, which accounts for 24% of global emissions, is gradually transitioning to electric vehicles, but the shift is uneven across regions. Industrial decarbonization remains a significant challenge, with global investments in industrial energy efficiency amounting to USD 80 billion in 2023, but gaps in the adoption of best practices and technologies persist.

Electricity generation is one area where substantial progress has been made, with renewable energy capacity additions reaching a record 473 GW in 2023. However, fossil fuels still account for over 60% of global electricity generation, posing a major barrier to meeting global climate targets. Even in countries like China, which leads in renewable energy capacity, there is a tension between economic growth and environmental sustainability, as evidenced by the approval of 114 GW of new coal power capacity in 2023.

Carbon pricing is another critical policy tool for reducing emissions and driving the transition to renewable energy. However, the effectiveness of carbon pricing mechanisms varies widely, with many prices set too low to incentivize significant emissions reductions. While the European Union’s Emissions Trading System (ETS) provides a strong signal for emission reductions, other regions have set carbon prices that are insufficient to drive meaningful change. There is also an increasing popularity of green bonds as a tool for financing renewable energy projects. In 2023, global green bond issuance reached an all-time high of USD 580 billion, with a significant portion allocated to renewable energy and energy efficiency projects. However, issues like “greenwashing” remain a concern, where projects are marketed as environmentally friendly without substantial evidence, leading to calls for stricter standards and better reporting mechanisms.

The report also highlights the often-overlooked role of renewable heat supply, which accounts for about 50% of global final energy consumption. Despite its importance, policies to promote renewable heat are lagging, and fossil fuels continue to dominate this sector. The global renewable heat capacity increased by about 5% in 2023, but this still represents only a small fraction of the total heat supply, indicating a need for stronger policy support and greater investment in technologies such as geothermal, biomass, and heat pumps.

The global renewable energy transition is an enormous undertaking that requires unprecedented levels of coordination, investment, and political will. While progress has been made, significant gaps remain that must be addressed to meet the climate goals and other international commitments.

Read the full report here : https://www.ren21.net/gsr-2024/

On the ongoing debate on clean hydrogen and emissions

Sun, 30 Jun 2024 04:50:16 GMT

Green hydrogen is seen as the fuel of the future. It seems so simple – just plug in your electrolyser to a solar panel, just as you plug in your iPhone to the charger, and get emission-free clean hydrogen. Blue hydrogen (produced from gas and capturing the carbon-dioxide) seems clearly not as clean – emissions throughout the entire process. I find it utterly fascinating – how and what can we do to reduce GHG emissions and decarbonize our economies? Unfortunately, the more I read, the more new and contradictory information I become aware of.

This op-ed focuses just on the issue of emissions related to hydrogen production, leaving many other issues to another day, foremost my favourite topic technology developments and break-throughs.

Do electrolyers and renewable energy go well together ?

How do electrolysers, designed for stable current, perform when subjected to intermittent electricity flow, as is supplied by renewable energy? A study was recently published of 130 publications covering the impacts of intermittent operation on alkaline and PEM electrolyzers from the year 2000–2023. (“Impacts of intermittency on low-temperature electrolysis technologies: A comprehensive review Emma Nguyen, Pierre Olivier, Marie-Cecile Pera, Elodie Pahon, Robin Roche”). The review encompassed issues related to efficiency, gas quality and durability arising at all operational scales, from the cell to the system level. The key points from reviewed publications can be summarized as follows:

i) “performance and durability of electrolyzers at all levels of the system operation, are significantly influenced by the variation of temperature and electrical load conditions,

ii) both the performance and durability of electrolyzers are impacted by the frequency of intermittent cycles during intermittent operation,

iii) short current interruption or decrease promote partial performance recovery,

iv) the stiffness of ramp-up and ramp-down events typically encountered in intermittent operation has an impact on the efficiency, gas purity and degradation rate,

v) the frequency and waveform of ripple factors encountered in power conversion units impact the efficiency and degradation rate of electrolyzers.”

This is immensely technical. What it boils down to is electrolysers do not perform as well with constant fluctuations, and degrade quicker, meaning cost projections can potentially be too optimistic.

One of the less obvious, but just as relevant issues is gas purity. This is confirmed by a study on “Comparing prospective hydrogen pathways with conventional fuels and grid electricity in India through well-to-tank assessment” (Sachin Chugh*, Chinmay Chaudhari, Alok Sharma, G.S. Kapur, S.S.V. Ramakumar of Indian Oil Corporation Limited, Research and Development Centre) came up with an estimate of 2.1%-5.65% total H2 loss only in production due to venting, hydrogen crossover, and purging to remove impurities.

My sense electrolyser manufacturers know these issues, and are working tirelessly to improve the performance.

Who is the cleanest hydrogen of them all …. ?

If Snow White were to look into the mirror, and ask - ´who is the cleanest hydrogen of them all?´, the answer would probably differ according to where the mirror stands. Europe would clearly say green, the USA would possibly allow for low carbon (blue) hydrogen, South Korea and Japan have noticeably tried to avoid the debate. As India tries to position itself, there were some amazing developments and articles in the last 4 weeks that caught my attention. “

In its Climate Issue of June 24th , The Economist pointed out the solar-power paradox – “Solar panels are bought because they are cheap, and mostly from China. But polysilicon, the raw material for solar panels that quietly generate electricity for 20-30 years without emitting any carbon whatsoever, is often made using coal, the most emissions-intensive fuel of all. Hopefully, this is an interim phase only, and once the price is right, solar panels will generate the electricity to melt the sand using the endless flux of photons from the sky, creating material for new, cheaper solar panels, which will be used in ever more surprising ways”.

Another study was released in the Netherlands reviewing the GHG effects of green hydrogen (Worldwide greenhouse gas emissions of green hydrogen production and transport, Kiane de Kleijne, Mark A. J. Huijbregts, Florian Knobloch, Rosalie van Zelm, Jelle P. Hilbers, Heleen de Coninck & Steef V. Hanssen ) The study reviews the life-cycle greenhouse gas emissions for 1,025 planned green hydrogen facilities, covering different electrolyser technologies and renewable electricity sources in 72 countries. “We demonstrate that the current exclusion of life-cycle emissions of renewables, component manufacturing and hydrogen leakage in regulations gives a false impression that green hydrogen can easily meet emission thresholds. Evaluating different hydrogen production configurations, we find median production emissions in the most optimistic configuration of 2.9 kg CO2 equivalents (CO2e) kg H2−1 (0.8–4.6 kgCO2e kg H2−1, 95% confidence interval). Including 1,000 km transport via pipeline or liquid hydrogen shipping adds another 1.5 or 1.8 kgCO2e kg H2−1, respectively. We conclude that achieving low-emission green hydrogen at scale requires well-chosen production configurations with substantial emission reductions along the supply chain.”

Blue hydrogen gets promoted as low-carbon hydrogen, and as the solution in the short-term. But is it really “low-carbon”? A report from the UK organisation Carbontracker.org comes to quite a different conclusion (https://carbontracker.org/reports/kind-of-blue/ ). This report evaluates the impact of upstream emissions to determine whether or not gas-based CCUS technologies could have a positive climate impact, assuming the technology would work as claimed by the CCUS industry. The report reveals that CO2 emissions from Blue Hydrogen and Gas-CCS projects could be two to three times (200-300%) higher than reported when considering upstream emissions from gas extraction, processing and transport.

Due to their specific geographic location, Japan and South Korea have greatly promoted hydrogen and ammonia, and to a degree overlooking nuances in production type. But as Argus Media reported, South Korea in a recent auction on May 24th set parameters for eligible bidders that are likely to favour carbon capture-based low-carbon ammonia projects over those produced with renewable hydrogen via electrolysis. But most notably, the government has outlined that any CCS projects will need to capture 90pc of carbon emitted in order to qualify for the bidding market. The 90pc threshold will exclude several low-carbon ammonia production projects that operate on steam methane reforming (SMR). (Retrofitted CCS capabilities on SMR plants typically are unable to capture more than 50pc of carbon emitted, while newbuild CCS SMR plants may be capable of capture rates of around 70-95pc).

At least some good news about not forgetting low-carbon hydrogen is but one of the instruments towards decarbonization ! Hopefully, these articles / studies will remind policy makers to look into and include the scope 3 emissions in the standards.