Master Class on ‘Financing Green Hydrogen in South Asia’ – 3 Part Series

USAID, through its South Asia Regional Energy Hub (SAREH) platform, collaborated with the Ministry of New and Renewable Energy (MNRE), Government of India, to organize a 3-part online Masterclass series on ‘Financing Green Hydrogen in South Asia’ on November 28, December 5 and December 12, 2023.

SAREH operates under USAID’s South Asia Regional Energy Partnership (SAREP), facilitating coordination and communication of USAID’s Clean EDGE Asia activities. This initiative aimed towards sensitizing and simplifying the Green Hydrogen sector for stakeholders in the region focussed on imparting a comprehensive understanding of financing the Green Hydrogen ecosystem. It covered topics such as the basics of Green Hydrogen, costing and economic implications, international progress, contractual considerations, and best practices in risk management. The goal was to promote financing in the Green Hydrogen sector in South Asian countries, recognizing their efforts to combat climate change and achieve Net-Zero targets.

The masterclass is part of SAREP’s broader objective of enabling flow of financing in the Green Hydrogen sector. Earlier this year, SAREP published a report on the “Investment Landscape of Green Hydrogen in India” and organized a capacity building workshop, in partnership with ICICI Bank to enhance the capacity of financial institutions and bankers in the Green Hydrogen sector.

The first part of the series took place on November 28, 2023, with key speakers addressing various aspects of the Green Hydrogen economy. Notably, Mr. Dinesh Jagdale, Joint Secretary, MNRE, acknowledged the Master Class’s pivotal role in cultivating interest in green hydrogen, fostering dialogue, and raising awareness among South Asian stakeholders. He also highlighted the advancements of the National Green Hydrogen Mission, underscoring the region’s potential to emerge as a global hub for green hydrogen supply.

During the first session, Mr. Anuraag Nallapaneni from WRI India provided insights into the “Introduction to Green Hydrogen Economy,” covering topics such as hydrogen applications, demand, the significance of green hydrogen, its value chain, policy announcements in South Asia, and the National Green Hydrogen Mission.

Mr. Vivek Salwan from SAREP delivered a lucid presentation on the “Costing and Economics of Green Hydrogen,” delving into components such as the Landed Cost of GH2, input costs related to renewable energy profile and system design, factors influencing production costs and storage, and transport/distribution costs.

The first session witnessed participation from 247 participants across 19 countries and 145+ organizations.

On December 5, 2023; Mr. Ajay Yadav, Joint Secretary, MNRE, in his Keynote address highlighted the role of green hydrogen in decarbonization across multiple industries and the need for integrative government action. He also underscored the progress made under National Green Hydrogen Mission, and the measures, GoI is undertaking to mainstream green hydrogen in different sectors and to bring its costs down.

Aaron Schubert, IPO Director (A) in his address discussed the transformative potential of green hydrogen in South Asia’s energy transition, aligning with USAID’s vision.

The session pivoted to practical insights from Mr. Kiran Kumar Alla from Power Plug on production technologies for green hydrogen, the potential of green hydrogen as both a chemical feedstock and an energy carrier, highlighting its role in industrial decarbonization and transportation sectors, including shipping and fuel cells.

Mr. Riyaz Bhagat from Trilegal shared his insights on the key features of sale and purchase contracts, showcasing novel elements designed to address specific challenges within the Green Hydrogen landscape as well as key principles of cross-border contracting for effective international collaboration.

The second session saw 190 participants from 17 countries and 125+ organizations.

The final session was held on December 12, 2023 which concluded the Masterclass series; centered on ‘Risk Management and Global Perspectives’. It was attended by 146 participants from 14 countries and 90+ organisations. Thought leaders who led the last session provided a panoramic view of risk management and the standards, policies, and regulatory considerations that will shape the trajectory of green hydrogen finance.

Mr. Amit Sengupta from Avaada shared his knowledge on the innovative financing instruments designed to accelerate the development of Green Hydrogen (GH2) projects citing examples of successful global projects and the key factors that enabled their success.

Mr. Anurag Mishra from Green Climate Fund gave a presentation on the investor’s risk management in Green Hydrogen projects, including macro-level and project-level risks, and how creditors assess them using the Expected Loss Framework as well as the policy initiatives for risk reduction and the potential of concessional capital deployment as a mitigation tool.

Mr. Nishaanth Balashanmugam initiated the session by GH2 and gave a brief overview on Green hydrogen standards and regulatory framework in India.

Thereafter, Mr. Joe Williams and Sanmit Ahuja gave a deeper understanding and detailed presentation on the global landscape for Green Hydrogen, focusing on standards, policies, and regulations including financing opportunities from DFIs and other investors as well as regulatory tools to promote Green Hydrogen adoption on both demand and supply sides. Mr. Ahuja also shed light on some new approaches to finance green climate.

This educational endeavor spread across 3 days brought together a diverse group of stakeholders, providing a platform to deepen understanding and accelerate the financing mechanisms within the Green Hydrogen sector. The series has equipped participants with the nuanced perspectives necessary to champion green hydrogen initiatives, which are ready to make a real difference in the region’s energy and environmental goals.

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