'Hydrogen highways' | India releases guidelines for $60m H2 transport subsidy programme

The Indian government has introduced a 4.96 billion rupee ($60 million) initiative aimed at financing experimental endeavors that employ hydrogen for heavy-duty road transport. The Ministry of Road Transport and Highways, responsible for overseeing the program, will designate an agency to solicit funding proposals for these pilot projects. Moreover, specific routes will be identified as "hydrogen highways," where the government will actively support the establishment of infrastructure for hydrogen (H2) production, distribution, and refueling.

In 2023, India inaugurated its inaugural hydrogen refueling station, commencing operations for its initial hydrogen-powered bus during the latter part of the same year. Hardeep Singh Puri, the oil minister, expressed optimism about green hydrogen being the future of the nation's transportation, notwithstanding the need for a reduction in current H2 costs.

The impending tender for pilot projects will be divided into two main components. The first segment will concentrate on utilizing hydrogen to propel trucks and buses, employing both fuel cells and hydrogen internal combustion engines. The second part aims to support the establishment and deployment of hydrogen refueling stations. Notably, the guidelines also contemplate supporting projects blending green hydrogen-derived synthetic fuels, like methanol or ethanol, with existing fossil fuel supplies.

It is essential to note that the pilot program will exclusively cover the initial expenses associated with adopting new technologies. The support provided will exclude the costs linked to green hydrogen production. The funding disbursed through the tender will be distributed across various stages, with only 20% available upfront. Subsequently, 70% of the government funds will be released based on predetermined project milestones, and the remaining 10% will only be granted upon the completion of the pilot projects, which are expected to conclude within two years, with a possible six-month extension based on justified reasons.

The Ministry of New and Renewable Energy will play a pivotal role, sitting on the steering committee to oversee the program and monitor expenditure. Additionally, the government has recently released guidelines for pilot projects involving hydrogen in the shipping and steel sectors. Guidance for the allocation of another four billion rupees ($48 million) for unspecified pilots, potentially including power generation, is still pending release.