Hydrogen Corpus Fund

The Hydrogen Corpus Fund (HCF) is a dedicated financial mechanism established by the Government of India under the Ministry of Petroleum and Natural Gas (MoP&NG) to promote research, development, and demonstration of hydrogen-based technologies. It primarily focuses on the advancement of hydrogen as a clean energy source, particularly for fuel and mobility applications. The fund represents a crucial step towards India’s long-term vision of transitioning to a low-carbon economy through the development of a domestic hydrogen ecosystem.

Background

The Hydrogen Corpus Fund was initiated as part of India’s growing efforts to diversify its energy mix and support the National Hydrogen Mission. With the global shift towards sustainable energy sources, hydrogen emerged as a key component in achieving net-zero emissions and enhancing energy security. Recognising this potential, the Ministry of Petroleum and Natural Gas created the HCF to support pilot projects, research initiatives, and technology demonstrations related to hydrogen production, storage, transportation, and utilisation.
The fund was formed in collaboration with major oil and gas Public Sector Undertakings (PSUs), with the aim of pooling financial resources and expertise to accelerate hydrogen innovation. The corpus was initially set at approximately ₹100 crore, with contributions from oil and gas PSUs and the Oil Industry Development Board (OIDB).

Structure and Administration

The Hydrogen Corpus Fund is jointly managed by participating oil and gas companies and the OIDB. The Centre for High Technology (CHT), functioning under the Ministry of Petroleum and Natural Gas, serves as the nodal agency for administering and coordinating fund utilisation.
Key contributors include:

• Oil and Natural Gas Corporation (ONGC)
• Indian Oil Corporation Limited (IOCL)
• Gas Authority of India Limited (GAIL)
• Bharat Petroleum Corporation Limited (BPCL)
• Hindustan Petroleum Corporation Limited (HPCL)
• Oil India Limited (OIL)

The OIDB provided a significant portion of the fund, while the PSUs contributed the remaining amount to form a consolidated corpus.

Objectives of the Hydrogen Corpus Fund

The Hydrogen Corpus Fund was created with the following key objectives:

• To promote research and development (R&D) in hydrogen production, storage, distribution, and fuel-cell technologies.
• To support pilot and demonstration projects in industrial and transportation sectors.
• To encourage collaboration between research institutions, industry, and government bodies for developing cost-effective hydrogen technologies.
• To build capacity and infrastructure necessary for scaling up hydrogen-based energy systems.
• To foster innovation and technology transfer, enabling the commercial deployment of hydrogen solutions.

Activities and Applications

The fund supports a wide range of projects that contribute to the development of India’s hydrogen economy, including:

• Pilot projects on hydrogen production from renewable sources such as electrolysis.
• Demonstration projects on hydrogen mobility, including hydrogen-fuelled buses, trucks, and blended fuels.
• Research studies on hydrogen storage and transportation, focusing on safety, efficiency, and scalability.
• Blending of hydrogen with natural gas (H-CNG) to reduce emissions from existing energy systems.
• Collaborations with academic and research institutions for technological advancements and skill development.

Through these initiatives, the Hydrogen Corpus Fund aims to create a foundation for sustainable hydrogen production and consumption in India.

Significance

The Hydrogen Corpus Fund holds great significance in India’s transition towards clean and renewable energy. It acts as a catalyst for innovation, driving R&D efforts to make hydrogen technologies more efficient and commercially viable. It also aligns with India’s commitment under global climate agreements to reduce greenhouse gas emissions and promote green energy.
Key benefits include:

• Promotion of Green Hydrogen as a carbon-free alternative to fossil fuels.
• Support for energy diversification, enhancing national energy security.
• Development of hydrogen infrastructure, including refuelling stations and storage systems.
• Encouragement of public–private partnerships in the hydrogen sector.

The fund complements broader national programmes such as the National Hydrogen Mission, which aims to position India as a global hub for hydrogen production and export.

Challenges

Despite its strategic importance, the Hydrogen Corpus Fund faces several challenges:

• High production costs of hydrogen, especially green hydrogen derived from renewable sources.
• Limited infrastructure for hydrogen storage, distribution, and refuelling.
• Technological barriers in scaling up hydrogen applications for industrial and transport sectors.
• Need for stronger coordination among PSUs, research institutions, and private players.
• Slow utilisation of funds, with some projects facing delays due to technological and regulatory hurdles.

Addressing these challenges requires consistent policy support, enhanced private-sector participation, and investment in advanced research.

Recent Developments

With the launch of the National Green Hydrogen Mission (2023), the Hydrogen Corpus Fund has gained renewed relevance. The government is encouraging PSUs and industries to propose new projects under the fund, focusing on:

• Hydrogen production using renewable energy (solar and wind-based electrolysis).
• Development of hydrogen fuel-cell technologies for transport and stationary power generation.
• Demonstration of hydrogen blending with compressed natural gas in city gas networks.
• Creation of pilot hydrogen hubs to integrate production, storage, and end-use applications.

Additionally, the fund is being leveraged to promote R&D collaborations between Indian and international organisations to accelerate innovation in hydrogen technologies.

Future Prospects

The Hydrogen Corpus Fund is expected to play a central role in realising India’s goal of becoming a global leader in hydrogen production and utilisation. Future plans include expanding the corpus, increasing private-sector contributions, and supporting large-scale demonstration projects that can lead to commercial adoption.
In the coming years, the fund is likely to focus on:

• Scaling up green hydrogen production to reduce costs through technology innovation.
• Developing hydrogen corridors for mobility and industrial use.
• Building comprehensive supply chains, including transportation and export infrastructure.
• Encouraging entrepreneurship and start-ups in hydrogen-related ventures.