Part 2 - Ultimate Guide to the National Green Hydrogen Policy India & Mission in 2025: Goals, Incentives, Stakeholders, Benefits, Misconceptions, and Future Roadmap
- Green Fuel Journal

- Dec 13, 2025
- 13 min read

What Tools and Software Support Green Hydrogen Planning and Implementation?
Energy modelling tools
For techno-economic assessment and project feasibility:
HOMER Pro (Hybrid Optimization of Multiple Energy Resources):
Purpose: Optimizing renewable energy + electrolyser configurations
Features: Evaluates solar-wind-battery-electrolyser hybrid systems; calculates levelized cost of hydrogen (LCOH); sensitivity analysis on renewable costs, capacity factors, electrolyser efficiency
Typical use: Pre-feasibility studies for green hydrogen projects; comparing off-grid vs. grid-connected configurations
System Advisor Model (SAM) by NREL:
Purpose: Detailed renewable energy performance and cost modeling
Features: Hourly simulation of solar/wind generation; financial analysis with tax incentives, depreciation; integration with electrolyser load profiles
Typical use: Detailed engineering for renewable energy plants dedicated to hydrogen production; evaluating impact of storage on capacity factors
H2A Model (Hydrogen Analysis Model) by U.S. DOE:
Purpose: Standardized hydrogen production cost analysis
Features: Production pathway comparison (electrolysis, SMR, biomass gasification); capital and operating cost breakdowns; sensitivity to electricity prices, water costs
Typical use: Comparing green hydrogen economics across different technologies and locations; benchmarking against grey/blue hydrogen
PyPSA (Python for Power System Analysis):
Purpose: Energy system optimization with high renewable penetration
Features: Simulates electricity grids with variable renewable energy; evaluates hydrogen as energy storage; optimizes transmission and distribution
Typical use: Assessing green hydrogen's role in grid balancing; planning hydrogen infrastructure in multi-state energy systems
India-specific tools:
NITI Aayog's Energy Planning Tools:
Integrated with India's renewable energy targets and policy frameworks
Scenario analysis for different green hydrogen adoption rates
Alignment with state-wise renewable potential assessments
SECI Bid Evaluation Platforms:
Standardized templates for SIGHT Component-I and II proposals
Automated financial calculations for incentive quantum based on DVA, energy efficiency
Electrolyser design and simulation tools
ANSYS Fluent and CFX:
Purpose: Computational Fluid Dynamics (CFD) for electrolyser stack design
Features: Simulating electrolyte flow, gas bubble dynamics, temperature distribution in electrolyser cells; optimizing electrode geometry
Typical use: R&D teams designing next-generation electrolysers with higher efficiency and durability
COMSOL Multiphysics:
Purpose: Multiphysics modeling of electrochemical processes
Features: Coupling electrochemistry, heat transfer, fluid dynamics; simulating membrane behavior, electrode degradation
Typical use: Academic and industrial researchers optimizing electrolyser materials and operating conditions
GT-SUITE:
Purpose: System-level modeling of hydrogen production facilities
Features: Balance of plant (BoP) components (pumps, heat exchangers, gas separators); dynamic response to variable renewable input
Typical use: EPC contractors designing integrated electrolysis facilities with renewable energy coupling
Electrolyser Manufacturer-Specific Tools:
Most major manufacturers (Nel Hydrogen, ITM Power, Cummins, Plug Power) provide proprietary design and sizing tools:
Input renewable energy profiles
Output optimal electrolyser size, expected hydrogen production, capacity factors
Technical support for site-specific customization
Policy tracking and compliance dashboards
National Green Hydrogen Mission Portal (MNRE):
Features:
Single-window clearance applications
Real-time tracking of statutory approvals (environmental clearances, land allocations, grid connectivity)
Transparency in SIGHT programme allocations, project commissioning status
Repository of policy documents, guidelines, FAQs
SECI Project Monitoring System:
Tracks awarded capacity under SIGHT Component-I and II
Milestone-based incentive disbursement status
Performance data (actual production vs. committed capacity, DVA achievement)
Central Electricity Authority (CEA) Grid Connectivity Portal:
Tracks renewable energy grid connectivity applications
Queue position for priority green hydrogen projects
Transmission availability and ISTS charge calculation
Ministry of Petroleum & Natural Gas Dashboard:
Tracks refinery-wise green hydrogen adoption
Monitors hydrogen blending targets
Reports on fossil fuel substitution metrics
Private Sector Tools:
Bloomberg NEF (New Energy Finance) Hydrogen Tracker:
Global database of announced green hydrogen projects
Tracks India-specific projects by capacity, location, status, offtakers
Cost benchmarking across geographies
IEA Hydrogen Database:
Policy comparison across countries
Technology performance benchmarks
Market intelligence on electrolyser costs, hydrogen prices
Renewable energy forecasting systems
Accurate renewable energy forecasting is crucial for optimizing electrolyser operations and achieving high capacity factors.
India Meteorological Department (IMD) Services:
Solar irradiance forecasting (day-ahead, intra-day)
Wind speed and direction forecasting
Historical weather data for site assessment
National Institute of Wind Energy (NIWE) Tools:
High-resolution wind resource maps for India
Wind power forecasting models (WRF-based)
Offshore wind resource assessment
National Institute of Solar Energy (NISE) Resources:
Solar radiation atlas for India
Forecasting services for large solar parks
Soiling and degradation data for performance modeling
Forecasting Software:
WindPRO by EMD International:
Wind farm design and energy production forecasting
Wake effect modeling for optimal turbine placement
Integration with electrolyser load profiles
PVsyst:
Industry-standard solar PV system simulation
Shading analysis, soiling losses, temperature effects
Hourly/sub-hourly generation profiles for electrolyser coupling
Vaisala 3TIER Services:
Commercial-grade renewable energy forecasting (hours to days ahead)
Used by major Indian renewable developers for project operations
Advanced Analytics:
Machine learning-based forecasting:
Neural networks trained on historical data for improved accuracy
Intra-day forecasting for electrolyser dispatch optimization
Prediction intervals for risk management
Satellite-based nowcasting:
Real-time cloud movement tracking for solar forecasting
Sub-hourly predictions for ramp management
These tools collectively enable:
Maximizing electrolyser capacity factors (targeting >60% through predictive curtailment management)
Minimizing battery storage requirements (optimizing electrolyser dispatch based on renewable availability forecasts)
Improving hydrogen production economics (reducing levelized cost by 10-15% through operational optimization)
How Do India's Policy and Mission Compare with Global Green Hydrogen Programs?
EU/US green hydrogen frameworks
European Union:
Policy Framework:
EU Hydrogen Strategy (July 2020): Targets 40 GW domestic electrolyser capacity by 2030, producing 10 MMT green hydrogen; additional 40 GW in neighboring countries for imports
REPowerEU (May 2022): Accelerated targets to 20 MMT total hydrogen supply by 2030 (10 MMT domestic production + 10 MMT imports)
Renewable Energy Directive (RED III): Mandates 42% green hydrogen in industrial hydrogen use by 2030, 60% by 2035
Financial Support:
Important Projects of Common European Interest (IPCEI): €5.4 billion ($5.8 billion) in public funding for electrolyser manufacturing, infrastructure projects across 15 member states
Innovation Fund: €3 billion for demonstration projects in hard-to-abate sectors
Connecting Europe Facility: €1.5 billion for cross-border hydrogen pipelines and infrastructure
Comparison with India:
Scale: EU's 10 MMT domestic production comparable to India's 5 MMT target, but EU has significantly smaller population (450 million vs. 1.4 billion) and higher per-capita energy consumption
Funding: EU's €10+ billion public investment (~$11 billion) comparable to India's ₹19,744 crore ($2.4 billion), but EU has access to much larger private capital markets
Mandates: EU has binding hydrogen usage mandates in refineries and steel; India's mandates still under discussion
Timeline: EU accelerated targets post-Russia energy crisis; India maintaining steady long-term approach
United States:
Policy Framework:
Infrastructure Investment and Jobs Act (2021): $9.5 billion for hydrogen hubs, electrolysis R&D, demonstrations
Inflation Reduction Act (2022): Production Tax Credit (PTC) of up to $3/kg for clean hydrogen (10-year duration), significantly reducing effective cost
Regional Clean Hydrogen Hubs: $8 billion to establish 7 regional hubs across diverse production pathways (renewables, nuclear, natural gas with CCS)
Financial Support:
Clean Hydrogen Production Credit (45V): $0.60-3.00 per kg based on lifecycle emissions, available for 10 years from project commissioning
Manufacturing credits: Investment tax credits for electrolyser and fuel cell manufacturing facilities
DOE Loan Programs: $40+ billion available for clean energy projects including hydrogen
Comparison with India:
Incentive structure: U.S. $3/kg PTC vs. India's ~₹30-50/kg (~$0.36-0.60/kg) under SIGHT—U.S. provides substantially higher per-kg support
Duration: U.S. 10-year PTC vs. India's 3-year SIGHT incentives—longer duration reduces financing risks
Pathway flexibility: U.S. includes nuclear-based and natural gas with CCS; India exclusively focused on renewable electrolysis
Market size: U.S. targeting 10 MMT by 2030, comparable scale to India despite much smaller population
Asia Pacific strategies
Japan:
Strategy:
Import-dependent approach: Japan has limited domestic renewable resources, planning to import 80-90% of hydrogen requirements
Targets: 3 MMT by 2030, 20 MMT by 2050
Partnerships: Bilateral agreements with Australia, Saudi Arabia, UAE, and India for hydrogen imports
Demand focus: Prioritizing mobility, power generation, industrial heat applications
Financial Commitment:
₹15 trillion (~$100 billion) public-private investment over 15 years
Price support mechanism: Government subsidies to bridge cost gap between green and fossil-based hydrogen
India comparison:
Japan = importer, India = exporter: Complementary positions creating trade opportunities
Technology transfer: Japanese companies (Toyota, Kawasaki Heavy Industries) partnering with Indian manufacturers
Cost competitiveness: Indian production costs projected $1-2/kg lower than Japan domestic production, enabling export competitiveness
South Korea:
Strategy:
Hydrogen Economy Roadmap: Targeting 5.26 MMT domestic consumption by 2040
Industrial focus: Leveraging strength in shipbuilding, steel, petrochemicals to develop hydrogen ecosystems
Mobility emphasis: Aiming for 6.2 million fuel cell vehicles by 2040
Financial Support:
₩43 trillion (~$33 billion) in combined public-private investment
R&D support: $2.5 billion for electrolyser, fuel cell, storage technology development
India comparison:
Complementary strengths: South Korea strong in downstream applications (fuel cells, vehicles); India competitive in upstream production
Trade potential: South Korean companies (Hyundai, POSCO, Samsung) exploring green hydrogen imports from India
Technology collaboration: Joint ventures on fuel cell buses, hydrogen-fueled ships
Australia:
Strategy:
Export-oriented production: Targeting 3-5 MMT exports by 2030, scaling to 100+ MMT by 2050
Cost advantage: Exceptional renewable resources in Western Australia, Northern Territory
Asian market focus: Primary export destinations Japan, South Korea, Singapore
Financial Support:
$2+ billion federal funding (Australia Renewable Energy Agency, Clean Energy Finance Corporation)
State-level incentives: Western Australia, Queensland providing additional support
India comparison:
Direct competition: Both targeting similar export markets
Cost comparison: Australia has lower population density, higher land availability, but India has lower labor costs, established industrial base
Shipping logistics: India's proximity to Asian markets provides 5-7 day shipping advantage over Australia's 10-14 days to Japan/Korea
Diversification: Asian importers prefer supply diversification rather than single-source dependence—room for both India and Australia
China:
Strategy:
Domestic focus: Primarily targeting domestic decarbonization rather than exports
Manufacturing dominance: Controls 40-50% of global electrolyser manufacturing capacity
Scale ambitions: Targeting 100-200 GW electrolyser capacity by 2030
Financial Support:
Provincial and municipal subsidies (exact national totals opaque)
State-owned enterprise investment (significant but undisclosed)
India comparison:
Manufacturing competition: Chinese electrolyser manufacturers (Longi, Sungrow, Cockerill Jingli Hydrogen) competing with Indian manufacturers for domestic and global markets
Technology transfer concerns: India prioritizing domestic manufacturing to avoid technology dependence on China (echoing solar manufacturing strategy)
Cost competition: Chinese manufacturers currently offer 20-30% lower electrolyser costs than global competitors, pressuring Indian manufacturers
Competitive advantages and gaps (green hydrogen challenges)
India's Competitive Advantages:
Renewable energy cost leadership:
Solar LCOEs of $0.015-0.025/kWh among lowest globally
Wind LCOEs of $0.025-0.035/kWh highly competitive
Result: Green hydrogen production costs potentially $0.5-1/kg lower than Europe, Japan, South Korea
Domestic demand scale:
6 MMT current hydrogen consumption provides immediate captive market
140+ million tonnes steel production, 25+ MMT fertilizers create large-scale demand for decarbonization
Reduces reliance on uncertain export markets compared to Australia
Industrial expertise:
Decades of experience in refining (250+ MMT capacity), ammonia production, chemical manufacturing
Established engineering, procurement, construction (EPC) capabilities
Skilled workforce in chemical engineering, process industries
Strategic geography:
7,500+ km coastline with major ports
Proximity to Middle East (6-7 days shipping), East Asia (10-12 days), Europe (14-16 days via Suez)
Shorter shipping distances reduce transportation costs by $0.3-0.8/kg vs. Australia to Asia
Policy commitment:
Clear 2030 targets, comprehensive Mission structure
Single-window clearance, transmission charge waivers reduce regulatory friction
Government willingness to iterate policies based on ground realities
India's Competitive Gaps:
Technology dependence:
80% import dependence on electrolysers (membranes, electrodes from Europe, China)
Limited domestic intellectual property in advanced electrolyser technologies
10-15 year gap in fuel cell technology compared to Japan, South Korea
Financing challenges:
Capital costs higher than developed markets: Lending rates 8-10% vs. 2-4% in EU/US
Smaller project finance market: Limited availability of 15-25 year debt required for hydrogen projects
Currency risk: Export projects face rupee volatility
Infrastructure deficits:
Limited hydrogen pipeline networks: Compared to Europe's extensive natural gas pipelines (adaptable for hydrogen)
Port infrastructure gaps: Requires $5-10 billion investment in specialized ammonia/hydrogen handling facilities
Water scarcity: Green hydrogen requires substantial demineralized water in arid regions (Rajasthan/Gujarat) with best solar resources
Regulatory and safety framework maturity:
Hydrogen safety standards evolving: PESO regulations still being finalized
Land acquisition challenges: Despite single-window clearance, land acquisition remains slow (12-24 months typical)
Grid infrastructure bottlenecks: Despite priority connectivity, transmission capacity additions lagging renewable growth
Market development:
Export certifications: International mutual recognition agreements for green hydrogen certification not yet established
Offtake uncertainty: Domestic industrial consumers hesitant to commit long-term contracts at premium prices
Export logistics: Shipping infrastructure for liquefied/compressed hydrogen or ammonia requires development
Strategic Recommendations to Address Gaps:
Technology: Incentivize joint ventures with global technology leaders; expand R&D funding to ₹2,000-3,000 crore annually (currently ₹400 crore)
Financing: Establish sovereign guarantee mechanisms for hydrogen projects; negotiate concessional finance from multilateral banks
Infrastructure: Fast-track hydrogen pipeline construction linking industrial clusters; invest ₹10,000-15,000 crore in port infrastructure upgrades
Regulatory: Finalize comprehensive safety standards by 2025; establish independent certification bodies
Market: Negotiate bilateral hydrogen trade agreements with Japan, South Korea, EU; create demand aggregation platforms for domestic industrial offtake
Conclusion
India's National Green Hydrogen Policy and Mission represent one of the most ambitious and comprehensive clean energy initiatives globally. By targeting 5 million metric tonnes of annual green hydrogen production and 125 GW of associated renewable energy capacity by 2030, India is positioning itself not merely as a participant but as a potential leader in the emerging global hydrogen economy.
The dual framework of the 2022 Policy (addressing regulatory and cost barriers) and the 2023 Mission (providing financial incentives and implementation mechanisms) creates an enabling ecosystem for rapid scale-up.
The ₹19,744 crore budget allocation, particularly the ₹17,490 crore SIGHT programme, demonstrates serious governmental commitment backed by financial resources. Early industry response—with SIGHT tenders oversubscribed by 100-220%—validates the program design and signals robust private sector confidence.
However, achieving these targets requires navigating substantial challenges. Cost competitiveness, electrolyser supply chain development, infrastructure gaps, offtake uncertainty, and regulatory coordination remain formidable barriers.
The recent acknowledgment by MNRE Secretary that India may achieve 3 MMT by 2030 rather than 5 MMT reflects pragmatic assessment rather than policy failure—building a 3 MMT green hydrogen industry in seven years would still represent extraordinary achievement.
Looking beyond 2030, India's green hydrogen journey extends to 2047 (centenary of independence) and ultimately Net Zero by 2070. Green hydrogen's role will expand from its initial applications in refineries and fertilizers to deep decarbonization of steel, heavy transport, shipping, aviation, and seasonal energy storage.
The pathway from 5 MMT in 2030 to potentially 15-20 MMT by 2040 and 50+ MMT by 2070 will require sustained political will, technological innovation, massive infrastructure investment, and adaptive policy frameworks.
India's success in green hydrogen has implications beyond domestic decarbonization. With projected export potential of 8-12 MMT annually by 2040, India can become a major clean energy exporter, creating a $50-80 billion annual export sector while contributing to global decarbonization.
This positions India as a critical supplier for resource-constrained economies like Japan, South Korea, Singapore, and potentially the European Union, establishing new energy partnerships that complement traditional fossil fuel relationships.
The National Green Hydrogen Policy India is not merely an energy policy—it is a comprehensive industrial strategy that integrates renewable energy development, advanced manufacturing, infrastructure creation, job generation, and climate action into a cohesive framework. Its success will significantly influence India's trajectory toward energy independence, economic resilience, technological leadership, and environmental sustainability.
As India advances this agenda, continuous monitoring, transparent reporting, adaptive policy refinement, and multi-stakeholder collaboration will be essential. The foundation is strong, the targets are ambitious, and the potential is immense. India's green hydrogen journey has begun—and the world is watching.
References & Citations:
This article is backed by authoritative sources and research from government agencies, international organizations, industry reports, and peer-reviewed publications:
Government Sources:
Ministry of New & Renewable Energy (MNRE), Government of India – National Green Hydrogen Mission Document (January 2023)
Press Information Bureau (PIB), Government of India – Cabinet Approves National Green Hydrogen Mission (January 4, 2023)
Ministry of Power, Government of India – Green Hydrogen Policy Notification (February 17, 2022)
MNRE – SIGHT Programme Guidelines Component-I (Electrolyser Manufacturing) (June 2023)
MNRE – Extension of ISTS Charge Waiver (April 2023)
NITI Aayog – Harnessing Green Hydrogen: Opportunities for Deep Decarbonisation in India (June 2022)
National Green Hydrogen Mission Portal – Official Website
Ministry of New & Renewable Energy – Official Website
Solar Energy Corporation of India (SECI) – Official Website
Press Information Bureau (PIB) – Green Hydrogen Mission Expected to Reduce ₹1 Lakh Crore Worth of Fossil Fuel Imports
International Organizations:
International Energy Agency (IEA) – India Energy Outlook 2024
International Energy Agency (IEA) – Global Hydrogen Review 2024
International Renewable Energy Agency (IRENA) – Green Hydrogen Cost Reduction Report (2024)
Green Hydrogen Organisation – India Country Profile
Research Institutions & Think Tanks:
Institute for Energy Economics and Financial Analysis (IEEFA) – India's $2.1bn Leap Towards its Green Hydrogen Vision (March 2024)
Institute for Energy Economics and Financial Analysis (IEEFA) – India's $2.1bn Push for Local Electrolyser Manufacturing
Council on Energy, Environment and Water (CEEW) – SIGHT Programme Explainer
Vasudha Foundation – Accelerating Green Hydrogen Economy: India's Progress on National Green Hydrogen Mission
Rocky Mountain Institute (RMI) – Green Hydrogen Production Pathways for India (2024)
IMPRI (Impact and Policy Research Institute) – Strategic Intervention for Green Hydrogen Transition (SIGHT) Programme Analysis
Drishti IAS – Green Hydrogen Policy Analysis
Drishti IAS – Green Hydrogen Policy Overview
Industry & Media Reports:
Construction World – India May Miss 2030 Target for 5 MMT Green Hydrogen: MNRE (November 2024)
Business Standard – India May Miss 5 MMT Green Hydrogen Output for 2030 Target: MNRE Secretary (November 2024)
pv magazine India – India's $2.1 Billion Green Hydrogen Programme Off to a Good Start but There's Room for Improvement (March 2024)
pv magazine International – India Introduces Green Hydrogen Policy (February 2022)
pv magazine India – Power Ministry Notifies Green Hydrogen Policy (February 2022)
Mercom India – No ISTS Charges Waiver for Solar, Wind Projects Commissioned After June 2028
India Brand Equity Foundation (IBEF) – India Sets Target of 5 MMT Annual Green Hydrogen Production by 2030
Renewable Watch – Ministry of Power Notifies Green Hydrogen Policy (February 2022)
Renewable Watch – Hit or Miss?: Industry Experts React to the Green Hydrogen Policy
India Science, Technology & Innovation (ISTI) Portal – National Green Hydrogen Mission Overview
iLo Consulting – Hydrogen Policy by Indian Government - Green Hydrogen
Reuters – India Talks Supply of 10 Million Tonnes of Green Hydrogen to EU
Regulatory & Technical Sources:
Central Electricity Regulatory Commission (CERC) – Amendments to Transmission Charge Regulations
Bureau of Indian Standards (BIS) – Hydrogen Standards Development
Petroleum and Explosives Safety Organisation (PESO) – Safety Regulations
Project Knowledge Sources:
Green Fuel Journal – Solar Energy and India's NetZero Roadmap 2070 (Volume 1, Issue 1, 2025)
Internal Research Publication
Green Fuel Journal – What Is Wind Energy Conversion System (2025)
Disclaimer:
Important Information for Readers
The information presented in this article is intended for educational and informational purposes only. While every effort has been made to ensure accuracy and reliability by cross-referencing multiple authoritative sources, readers should:
1. Verify Current Policy Details
Consult official government sources (MNRE, PIB, SECI) before making business or investment decisions
Policy guidelines, incentive amounts, and eligibility criteria are subject to change
Always refer to the latest official documentation for binding information
2. Seek Professional Consultation
Consult qualified professionals for specific project planning, investment decisions, or regulatory compliance
Recommended professionals: Legal advisors, financial consultants, technical experts, chartered accountants
3. Understand Projections and Estimates
Recognize that projections and targets (including the 5 MMT by 2030 target) represent government ambitions, not guarantees
Actual outcomes may vary based on global economics, technology advancement, private investment, and policy continuity
No Warranties or Guarantees: Green Fuel Journal and the article authors make no warranties, express or implied, regarding completeness, accuracy, or applicability of this information to specific circumstances.
Limitation of Liability: Readers assume full responsibility for their use of this information. Green Fuel Journal shall not be held liable for any decisions made based on information in this article, financial losses, project failures, regulatory non-compliance, or any damages.
Official Resources:
For the most current policy guidelines, scheme notifications, and application procedures, visit:
• MNRE Official Website: https://mnre.gov.in
• National Green Hydrogen Mission Portal: https://nghm.mnre.gov.in
• SECI Website: https://seci.co.in
For comprehensive disclaimers covering all Green Fuel Journal content,







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