Asia Pacific Trade

India Proposes $5 Billion Fund to IH2A for Large-Scale Hydrogen Projects

What if the non-renewable energy source is replaced with a clean, abundant energy source that revolutionizes industry, transforms transportation, and solves the ongoing issues of global warming and Climate change? What! Yes, Hydrogen, which is generally known as the Future fuel. Let’s understand this.

Recently, India has proposed a $5 Billion fund for IH2A, a national hydrogen transition funding mechanism, similar to the EU Green Hydrogen Fund, for large-scale projects and infrastructure development for the Hydrogen hub.

IH2A recommended five key focus areas for exploring this unexplored area for future advancement.

  • Capex support for the Greenfield project
  • Support state government in developing domestic hydrogen equipment
  • Support Sectoral Hydrogen
  • Build a National Hydrogen Transition skill program
  • Development of a National hub for Hydrogen

The market for Hydrogen (Specifically HSNC 2804) is in its nascent stage, and there is exponential growth for the untapped market opportunity for both already-established businesses and newly emerged entrepreneurship.

Let’s start the comparative analysis of hydrogen trade values and also its nature for tapping the global market for untapped opportunities with our MarketInside trade data.

Now with this table, you will be able to understand countries’ trade in hydrogen and other related products. The total export trade value for future fuel increased year on year, in 2021 it was more than $13 Billion which further increased to $17.4 in 2022. Among this untapped opportunity, China and the USA are emerging markets for the Hydrogen export business. Export details from 2021 to 2023 till Q3 are mentioned below in the table.

Total Trade Value Per Million
Country202120222023 Till Q3
China 262130251475
Malaysia 806991528

The total import trade value for hydrogen and related products in China shows consistent growth year-on-year from $2,563 Million in 2021 to $3,451 million in 2022 and $2069 Million till 2023 Q3, from the below table it’s clear that consistent growth promising outlook for the global hydrogen market.

Total Trade Value Per Million USD
 202120222023 Till Q3
China 256334512069
S. Korea 9381614715

India’s total import of hydrogen and related products increases from 2022 to 2023 till Q3, with a significant decline in trade value from 609 million USD to 363 million USD. If you analyze the table, you will find that imports from Qatar witnessed an increase, and imports from the rest of the countries fell drastically. Look at the table for more information.

Total Trade Value per Million USD
Country20222023 till Q3
World 609363
Vietnam 24063
Malaysia 3922

The total trade value of exported Hydrogen Gas and other related products decreased remarkably from 17.6 million to 12.5 million USD in 2023 Till Q3. This decline could be attributed to several factors such as the Russia-Ukraine conflict, the Israel-Hamas conflict, the economic slowdown, and the shift in trade policies. On the other hand, trade with Hong Kong China drastically increased and presented it as a potential hub for regional trade. In contrast, the decline in trade with Oman indicates challenges and potential trade disruptions.

Total Trade Value per Million USD
Country 20222023 Till Q3
World 17.612.5
Hong Kong China2.14.1
Bangladesh 2.81.9
UAE 2.51.3

Why Market is Tilted for Hydrogen

  • India’s green hydrogen market will be more than 8 billion USD in total by 2030 and 340 billion USD by 2050.
  • Global market will be 642 billion USD and expected to grow more than 1.4 trillion USD by 2050
  • It’s forecast that China will be the largest clean hydrogen market during the entire period

Steps and Policies Taken Around the World for Tapping Hydrogen

  • India’s National Green Hydrogen mission and IH2A
  • NEOM, the world’s largest renewable project
  • Spain’s Hydeal Ambition, the largest renewable hydrogen project.
  • US National Clean Hydrogen Roadmap
  • EU’s Hydrogen Strategy for a Climate-Neutral Europe

Hydrogen, a clean source of energy with a 1.4 trillion USD market potential provides significant opportunities for export businesses to drive future growth and expansion, for expanding businesses into an emerging market, government support and technological advancement can help position themselves as leaders in the rapidly growing hydrogen market.

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