Ultimate Guide to the National Green Hydrogen Policy India & Mission in 2025: Goals, Incentives, Stakeholders, Benefits, Misconceptions, and Future Roadmap - Part 1
- Green Fuel Journal
- Dec 13, 2025
- 28 min read
India stands at the threshold of a transformative energy revolution. The National Green Hydrogen Policy India and the complementary National Green Hydrogen Mission represent the country's ambitious blueprint to decarbonize hard-to-abate sectors, reduce fossil fuel import dependence, and position India as a global leader in clean hydrogen production.
With targets to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030 and establish 125 GW of associated renewable energy capacity, India is making one of the most significant policy commitments in the global green hydrogen landscape.
This comprehensive guide explores every dimension of this landmark initiative—from policy mechanisms and incentives to stakeholder roles, economic benefits, implementation challenges, and the future roadmap that will shape India's journey toward Net Zero by 2070.
Ultimate Guide to the National Green Hydrogen Policy India & Mission in 2025 — Complete Breakdown
Understanding the National Green Hydrogen Policy India requires distinguishing between two interconnected but distinct frameworks: the Green Hydrogen Policy (notified in February 2022) and the National Green Hydrogen Mission (approved in January 2023). Together, these initiatives form India's comprehensive strategy for green hydrogen development, encompassing regulatory frameworks, financial incentives, infrastructure development, and demand creation mechanisms.
The Ministry of New & Renewable Energy (MNRE) serves as the nodal ministry overseeing both initiatives, working in coordination with multiple stakeholders including the Solar Energy Corporation of India (SECI), state governments, industry players, and research institutions. This dual-pronged approach—combining policy-level regulatory reforms with mission-mode implementation—creates an enabling ecosystem that addresses both supply-side and demand-side challenges in the emerging green hydrogen economy.
What is the National Green Hydrogen Policy India and Mission?
Definition of the Policy vs. the Mission
The Green Hydrogen Policy (notified February 17, 2022) is a regulatory framework designed to reduce the cost barriers and procedural complexities associated with green hydrogen production. It provides specific provisions for:
25-year waiver of Inter-State Transmission System (ISTS) charges for renewable energy used in green hydrogen production (for projects commissioned before June 30, 2025, later extended to December 31, 2030)
Priority grid connectivity for renewable energy plants supplying green hydrogen facilities
Renewable energy banking for up to 30 days
Open access approval within 15 days of application
Renewable Purchase Obligation (RPO) benefits for green hydrogen manufacturers
Establishment of dedicated manufacturing zones and port-side storage bunkers
Single-window clearance portal for statutory approvals
The National Green Hydrogen Mission (approved January 4, 2023) is a comprehensive implementation program with a total outlay of ₹19,744 crore ($2.4 billion) for the period FY 2023-24 to FY 2029-30.
The Mission encompasses:
Strategic Interventions for Green Hydrogen Transition (SIGHT) programme with ₹17,490 crore allocation
Pilot projects across steel, mobility, and shipping sectors (₹1,466 crore)
Research & Development initiatives (₹400 crore)
Skill development, awareness programs, and other mission components (₹388 crore)
Why India launched both policy and mission
India's dual approach reflects the complexity of establishing a green hydrogen economy from scratch. The Policy addresses immediate regulatory and cost barriers—transmission charges alone can increase renewable electricity costs by 1.5 to 2.5 times, making green hydrogen uncompetitive without waivers.
The Mission provides the financial muscle and institutional mechanisms needed to scale manufacturing capacity, de-risk investments, and create demand.
This complementary structure ensures that while the Policy creates an enabling regulatory environment, the Mission drives active deployment through targeted incentives and pilot demonstrations. The approach mirrors successful precedents like India's solar sector transformation, where policy reforms combined with mission-mode implementation accelerated capacity from under 3 GW in 2014 to over 123 GW by 2025.
Key dates and government approvals
Date | Milestone | Significance |
August 15, 2021 | National Hydrogen Mission announced by Prime Minister | Initial commitment at India's 75th Independence Day |
February 17, 2022 | Green Hydrogen Policy notified by Ministry of Power | First regulatory framework for cost reduction |
January 4, 2023 | Cabinet approval of National Green Hydrogen Mission | Formalization with ₹19,744 crore budget allocation |
June 2023 | SIGHT Programme guidelines released by MNRE | Implementation mechanisms for incentives |
July 2023 | SECI issues RfS for electrolyser manufacturing (1,500 MW) | First tender under SIGHT Component-I |
July 2023 | SECI issues RfS for green hydrogen production (450,000 MTPA) | First tender under SIGHT Component-II |
January 2024 | Award of 1,500 MW electrolyser capacity to 8 companies | First successful bid allocation |
April 2023 | Extension of ISTS charge waiver to December 31, 2030 | Enhanced policy support for longer-term projects |
Why are the Policy and Mission Important for India's Energy Future?
Importance of green hydrogen for net-zero and energy security
India's Net Zero 2070 commitment demands unprecedented transformation across all economic sectors. Green hydrogen serves as the missing link for decarbonizing sectors where electrification alone cannot provide solutions—including refining, fertilizer production, steel manufacturing, heavy-duty transportation, aviation, and shipping.
Currently, India consumes approximately 6 million tonnes of hydrogen annually, virtually all produced through fossil fuel-based processes (grey hydrogen) that emit approximately 9 tonnes of CO₂ per tonne of hydrogen produced. This translates to roughly 54 million tonnes of CO₂ emissions annually just from current hydrogen use. By replacing grey hydrogen with green hydrogen, India can eliminate these emissions while creating a scalable platform for further industrial decarbonization.
The National Green Hydrogen Mission targets abatement of nearly 50 MMT of CO₂ emissions annually by 2030, equivalent to removing approximately 10 million cars from Indian roads. This positions green hydrogen as one of India's most impactful climate mitigation strategies, directly supporting the country's Nationally Determined Contributions (NDCs) to reduce emissions intensity of GDP by 45% by 2030 from 2005 levels.
Role in reducing fossil fuel imports and economic resilience
India imports over 85% of its crude oil and 53% of its natural gas requirements, resulting in an annual import bill exceeding $160 billion for fossil fuels.
This creates substantial balance-of-payments pressure and exposes the economy to global price volatility—as dramatically demonstrated during the 2022 energy crisis when oil prices exceeded $120 per barrel.
The National Green Hydrogen Mission is projected to reduce cumulative fossil fuel imports worth ₹1 lakh crore ($12 billion) by 2030. This economic benefit extends beyond direct fuel substitution:
Fertilizer sector: India imports approximately 8 million tonnes of ammonia-based fertilizers annually. Green ammonia production can displace these imports while providing farmers with domestically produced, potentially cheaper alternatives.
Refining sector: India's 23 operational refineries consume substantial hydrogen for desulfurization and hydrocracking processes. Transitioning to green hydrogen reduces dependence on natural gas feedstock.
Strategic reserves: Green hydrogen enables energy storage and grid balancing, reducing reliance on imported coal for baseload power during renewable energy intermittency.
Strategic importance in global energy markets (green hydrogen export India)
The global green hydrogen market is projected to reach 10-15 MMT annually by 2030 and scale to over 500 MMT by 2050. Land-constrained and resource-limited economies—particularly Japan, South Korea, Germany, and Singapore—will require massive imports to meet decarbonization targets. India's combination of abundant renewable energy resources, low-cost solar and wind power, and strategic geographic positioning creates significant export opportunities.
India targets capturing approximately 10% of global green hydrogen trade by 2030, potentially exporting up to 10 MMT of green hydrogen or green ammonia annually. At projected prices of $2-3 per kg, this represents an export market worth $20-30 billion annually—creating a new high-value energy export sector to complement traditional petroleum product exports.
The European Union's announcement of plans to import 10 MMT of green hydrogen by 2030 and discussions between India and the EU regarding potential supply agreements highlight the strategic export potential. India's proximity to Middle Eastern and Asian markets further strengthens its competitive positioning compared to distant suppliers like Australia or Chile.
What are the Primary Goals and Targets of India's Green Hydrogen Initiatives?
Production capacity goals (5 MMT by 2030)
The National Green Hydrogen Mission's central target is achieving 5 MMT of annual green hydrogen production capacity by 2030. This represents an enormous scaling challenge, as India's current green hydrogen production is minimal—limited to pilot projects and demonstration facilities totaling less than 10,000 tonnes annually.
To contextualize the 5 MMT target:
It equals approximately 83% of India's current total hydrogen consumption (including grey hydrogen)
Requires installation of approximately 60-70 GW of electrolyser capacity (assuming average capacity factors of 40-50%)
Demands consumption of roughly 300-350 TWh of renewable electricity annually for electrolysis
Involves estimated total investment of $70-80 billion across the value chain
Recent statements from MNRE Secretary Santosh Kumar Sarangi in November 2024 acknowledged that achieving the full 5 MMT target by 2030 faces challenges due to global supply chain constraints and technology maturation timelines.
Revised projections suggest achieving approximately 3 MMT by 2030, with the full 5 MMT target potentially realized by 2032. However, with sustained policy support and accelerated project implementation, reaching closer to the original target remains feasible.
Renewable energy capacity link (125 GW)
The Mission targets addition of approximately 125 GW of renewable energy capacity specifically dedicated to green hydrogen production by 2030.
This represents about 25% of India's total renewable energy target of 500 GW by 2030, demonstrating the massive scale of energy infrastructure required.
This dedicated renewable capacity will come from:
Solar photovoltaic plants: Estimated 70-80 GW, primarily in high-irradiance states like Rajasthan, Gujarat, Karnataka, and Andhra Pradesh
Onshore wind: Approximately 30-40 GW, concentrated in coastal states and high-wind-potential regions
Offshore wind: 10-15 GW, particularly along Gujarat and Tamil Nadu coasts where offshore wind projects are being developed
Hybrid solar-wind systems: Optimizing capacity factors and reducing intermittency
The 125 GW target is particularly significant because it requires dedicated, "additional" renewable capacity rather than diverting existing renewable generation from grid supply. This ensures that green hydrogen development accelerates rather than competes with India's broader electrification and grid decarbonization goals.
Export market share aspirations
Beyond domestic consumption, the National Green Hydrogen Mission explicitly targets export markets as a key economic opportunity.
India aims to:
Capture approximately 10% of global green hydrogen/ammonia trade by 2030
Export up to 10 MMT of green hydrogen or derivatives annually (double the domestic consumption target, if export opportunities materialize)
Position India among the world's top 3-5 green hydrogen exporters alongside Australia, Saudi Arabia, and Chile
Export markets will likely prioritize:
Green ammonia for fertilizers: European and Asian markets seeking decarbonized agricultural inputs
Green ammonia for shipping fuel: Maritime sector transitioning toward zero-emission fuels under IMO 2050 regulations
Green methanol: For chemical industry feedstock and as a marine fuel alternative
Direct hydrogen exports: Through pipelines to neighboring countries or as compressed/liquefied hydrogen via shipping
India's competitive advantages for export include:
Lowest delivered cost of renewable electricity globally (solar LCOEs below $0.02/kWh in optimal locations)
Established port infrastructure along 7,500+ km coastline reducing logistical export costs
Existing refining and chemical industry expertise enabling rapid technology adoption
Strategic location between high-demand markets in Europe, East Asia, and Middle East
What are the Core Components of the National Green Hydrogen Policy India?
SIGHT programme incentives (Detail the SIGHT programme India)
The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme forms the financial backbone of the Mission with a total allocation of ₹17,490 crore ($2.1 billion).
SIGHT operates through two complementary components designed to address both manufacturing and production bottlenecks:
Component-I: Electrolyser Manufacturing Incentives (₹4,440 crore allocation)
This component provides production-linked incentives to domestic electrolyser manufacturers to establish 1,500 MW of manufacturing capacity in Tranche-I, with subsequent tranches planned.
Key features include:
Base incentive structure: Starting at ₹4,440 per kW in Year 1, tapering over five years to ₹1,110 per kW in Year 5
Performance modifiers: Additional incentives for achieving higher domestic value addition (DVA) and lower specific energy consumption
Competitive bidding process: Manufacturers bid for capacity allocation through SECI-administered tenders
Technology-agnostic approach: Supporting both alkaline and PEM (Proton Exchange Membrane) electrolyser technologies
Tranche-I Results (January 2024):
SECI received bids for 3,328.5 MW capacity from 21 bidders—more than double the targeted 1,500 MW. Eight companies secured capacity allocations:
Company | Allocated Capacity (MW) | Maximum Incentive |
Reliance Electrolyser Manufacturing | 300 | ₹444 crore ($54.1 million) |
John Cockerill Green Hydrogen Solutions | 300 | ₹444 crore |
Jindal India | 300 | ₹444 crore |
Ohmium Operations | 150 | ₹222 crore |
Advait Infratech | 150 | ₹222 crore |
Larsen & Toubro Electrolysers | 100 | ₹148 crore |
HomiHydrogen | 101.5 | ₹150 crore |
Adani New Industries | 198.5 | ₹294 crore |
Most successful bidders established technology licensing agreements with global electrolyser manufacturers (such as John Cockerill, Cummins, McPhy, ITM Power) prior to bidding, demonstrating strategic preparation and access to proven technologies.
Component-II: Green Hydrogen Production Incentives (₹13,050 crore allocation)
This component incentivizes actual green hydrogen production to bridge the cost gap between green and grey hydrogen, facilitating commercial offtake. Key parameters include:
Target capacity: Initial tranche of 450,000 MTPA of green hydrogen production
Incentive structure: Bidders quote required incentive per kg of green hydrogen produced (ranging from a maximum of ₹50/kg in Year 1 declining over three years)
Duration: Incentives provided for the first three years of production to de-risk early projects
Competitive selection: Projects selected based on lowest incentive demanded through reverse auctions
Tranche-I Results:
SECI received bids for 551,500 MTPA from 13 bidders, exceeding the 450,000 MTPA target. Successful bidders included major energy companies such as Reliance Industries, Greenko, ACME, Hygenco (HHP Two), Torrent Power, JSW Neo Energy, UPL, Welspun, CESC Projects, and Bharat Petroleum. However, approximately 38,000 MTPA of biomass-based capacity remained unallocated, indicating technology-specific challenges in biomass gasification pathways.
The strong industry response to both SIGHT components—with bid capacity exceeding targets by 100-220%—demonstrates robust private sector confidence in India's green hydrogen opportunity and validates the incentive design.
Electrolyser manufacturing support (Detail electrolyser manufacturing incentives)
Electrolysers are the critical equipment for green hydrogen production, splitting water into hydrogen and oxygen using renewable electricity. Currently, India imports approximately 80% of electrolyser requirements, creating supply chain vulnerabilities and increasing costs. The electrolyser manufacturing incentive scheme addresses this gap through several mechanisms:
Incentive Quantum and Structure:
Manufacturers receive performance-based incentives calculated as:
Annual Incentive = (Base Incentive per kW) × (Domestic Value Addition Factor) × (Energy Efficiency Factor) × (Actual Production in kW)
Where:
Base Incentive: Starts at ₹4,440/kW in Year 1, declining to ₹1,110/kW by Year 5
DVA Factor: Ranges from 0.85 to 1.15 based on achieving 40-70% domestic value addition
Energy Efficiency Factor: Ranges from 0.85 to 1.15 based on specific energy consumption relative to global benchmarks
This structure incentivizes manufacturers to:
Maximize local content through domestic supply chain development
Achieve internationally competitive efficiency levels
Scale production volumes rapidly
Technology Support:
The program supports multiple electrolyser technologies:
Alkaline Electrolysers: More mature technology, typically 60-70% efficient, lower capital costs ($400-700/kW)
PEM Electrolysers: Higher efficiency (65-80%), faster response times, higher costs ($700-1,400/kW)
Solid Oxide Electrolysers (future): Potential for >80% efficiency but currently in earlier development stages
By remaining technology-agnostic, the program enables manufacturers to choose optimal technologies for their target markets and applications rather than prescribing specific solutions.
Impact Projections:
Estimated 7-10% reduction in total electrolyser system costs over five years
Average realizable base incentive of ₹2,960/kW ($36/kW) annually
Reduction in import dependence from 80% to <40% by 2030
Establishment of domestic supply chains for critical components (electrodes, membranes, power electronics, balance of plant)
Waivers and grid access provisions (Green Hydrogen Hubs)
The Green Hydrogen Policy's transmission charge waivers and grid access provisions address one of the most significant cost barriers: the expense of transmitting renewable electricity from generation sites to green hydrogen production facilities.
Inter-State Transmission System (ISTS) Charge Waiver:
Projects commissioned by December 31, 2030 receive:
Commissioning Period | Waiver Percentage | Duration |
Before June 30, 2025 | 100% | 25 years |
July 1, 2025 - June 30, 2026 | 75% | 25 years |
July 1, 2026 - June 30, 2027 | 50% | 25 years |
July 1, 2027 - June 30, 2028 | 25% | 25 years |
July 1, 2028 - December 31, 2030 | Declining based on commissioning date | 25 years |
Impact: ISTS charges typically add ₹0.50-1.50 per kWh to renewable electricity costs. For green hydrogen production requiring 50-55 kWh per kg, this translates to potential savings of ₹25-82 per kg of hydrogen over the project lifetime—a 30-40% reduction in levelized cost.
Priority Grid Connectivity:
Renewable energy projects dedicated to green hydrogen receive priority allocation in grid connectivity queue
Green hydrogen facilities granted connectivity within 15 days of complete application submission (compared to typical 6-12 month delays)
Coordination between Central Transmission Utility (CTU) and State Transmission Utilities (STUs) streamlined through single-window clearance
Banking Provisions:
Renewable energy banking for up to 30 days allows green hydrogen producers to:
Store surplus renewable generation during high-production periods
Withdraw stored energy during low-generation periods
Optimize electrolyser capacity utilization (targeting >60% capacity factors)
Reduce dependency on costly battery storage systems
Green Hydrogen Hubs:
The policy enables establishment of dedicated Green Hydrogen Hubs in:
Renewable Energy Parks: Co-locating green hydrogen production with large-scale solar/wind parks (examples: Khavda Renewable Energy Park in Gujarat, Bhadla Solar Park in Rajasthan)
Industrial Clusters: Proximity to hydrogen-consuming industries (refining hubs in Jamnagar, Vadodara; fertilizer complexes in Uttar Pradesh)
Port Locations: For export-oriented production and bunkering facilities (ports at Mundra, Kakinada, Tuticorin)
Certification and regulatory frameworks
Establishing credible green hydrogen certification is critical for domestic standards compliance and international trade. The Ministry of New & Renewable Energy (MNRE) is developing comprehensive frameworks:
Green Hydrogen Definition:
MNRE defines green hydrogen as hydrogen produced through electrolysis of water using renewable energy, including:
Direct renewable electricity: From co-located or dedicated renewable plants
Banked renewable electricity: Using grid banking mechanisms
Renewable energy certificates (RECs): For flexibility in renewable energy sourcing
Critical certification parameters include:
Additionality: Ensuring renewable energy used for hydrogen production represents new/additional capacity rather than diverting existing grid-connected renewable generation
Temporal Matching: Aligning hydrogen production timing with renewable energy generation (hourly, daily, or monthly matching requirements)
Deliverability: Verifying geographic and infrastructural connection between renewable generation and hydrogen production sites
Standards Development:
India is aligning with international standards while developing domestic frameworks:
Bureau of Indian Standards (BIS): Developing standards for hydrogen purity, safety protocols, storage, and transportation
Petroleum and Explosives Safety Organisation (PESO): Safety regulations for hydrogen handling
Automotive Research Association of India (ARAI): Standards for hydrogen vehicles and refueling infrastructure
International alignment: Harmonizing with ISO 14687, SAE J2719, EU Renewable Energy Directive requirements
Certification Bodies:
Multiple agencies will provide certification services:
National Accreditation Board for Certification Bodies (NABCB): Accrediting certifiers
SECI and other designated agencies: Project-level certification
Independent third-party auditors: Verification of renewable energy source and emissions calculations
Demand creation & procurement mechanisms
Creating sustained demand for green hydrogen—despite its current cost premium over grey hydrogen—requires multiple policy levers:
Mandates and Obligations:
Green Hydrogen Purchase Obligation (GHPO): Under consideration to mandate specific sectors (refineries, fertilizers) to procure minimum percentages of green hydrogen
Renewable Purchase Obligation (RPO) linkage: Green hydrogen production counts toward RPO targets for distribution companies
Fertilizer subsidy linkage: Potential preferential subsidies for fertilizers produced using green hydrogen
Pilot Projects:
The Mission allocates ₹1,466 crore for pilot demonstrations across sectors:
Steel sector (₹455 crore through 2029-30): Direct reduced iron (DRI) production using green hydrogen, targeting 10-30% hydrogen blending initially
Mobility (₹496 crore through 2025-26): Hydrogen fuel cell buses, trucks, and trains in urban transport systems
Shipping (₹115 crore through 2025-26): Green ammonia bunkering infrastructure and vessel conversions in ports like Mumbai, Chennai, Visakhapatnam
Viability Gap Funding (VGF):
For sectors where green hydrogen costs remain prohibitively high, VGF mechanisms provide capital subsidies to bridge the gap, accelerating adoption in:
Remote and off-grid applications
Early-stage mobility projects
Export-oriented production where international carbon pricing provides additional revenue
Competitive Procurement:
SECI conducts reverse auctions where:
Industrial consumers aggregate green hydrogen demand
Producers bid to supply at lowest cost
Long-term contracts (15-25 years) provide revenue certainty
Government incentives reduce effective cost to industrial buyers
Who are the Key Stakeholders and Beneficiaries?
Government institutions (MNRE, H2 Mission bodies)
Ministry of New & Renewable Energy (MNRE):
The nodal ministry responsible for:
Overall policy formulation and mission design
Budget allocation and disbursement oversight
Coordination with other ministries (Power, Petroleum, Steel, Shipping, Road Transport)
International cooperation and bilateral agreements
Single-window clearance portal administration
Solar Energy Corporation of India (SECI):
The designated implementing agency for:
SIGHT programme administration
Tender design and competitive bidding processes
Capacity allocation to electrolyser manufacturers and green hydrogen producers
Incentive disbursement and performance monitoring
Contract management and compliance verification
National Mission Governing Council:
Chaired by the Minister of New & Renewable Energy, comprising:
Secretaries from relevant ministries
State government representatives
Industry association leaders
Technical experts from research institutions
State Nodal Agencies:
Individual states establish dedicated agencies to:
Identify suitable land parcels in renewable energy parks
Facilitate state-level clearances (land use, water allocation, environmental permits)
Coordinate with distribution companies for grid connectivity
Implement complementary state-level incentives and policies
Research & Development Bodies:
Indian Institute of Technology (IIT) network: Advanced electrolyser R&D, materials science
Council of Scientific and Industrial Research (CSIR) laboratories: Hydrogen storage, fuel cells
Indian Oil Corporation R&D Centre: Integration in refining processes
National Hydrogen Energy Board: Technical advisory and standards development
Industrial sectors (refineries, fertilizers, steel)
Refining Sector:
India operates 23 refineries with total capacity of 250+ million tonnes per annum, consuming approximately 2 million tonnes of hydrogen annually for:
Hydrodesulfurization: Removing sulfur from petroleum products to meet BS-VI emission standards
Hydrocracking: Breaking heavy hydrocarbons into lighter, higher-value products
Hydrotreating: Improving product quality
Major refining companies participating:
Indian Oil Corporation (IOC): Planning green hydrogen integration at Panipat and Mathura refineries
Bharat Petroleum Corporation Limited (BPCL): Bina refinery green hydrogen project
Hindustan Petroleum Corporation Limited (HPCL): Visakhapatnam refinery feasibility studies
Reliance Industries: Jamnagar complex (world's largest refinery) exploring large-scale green hydrogen
Fertilizer Sector:
India produces approximately 25 million tonnes of urea annually, consuming roughly 3 million tonnes of hydrogen (primarily produced from natural gas through steam methane reforming). Major producers:
Indian Farmers Fertiliser Cooperative (IFFCO): Exploring green ammonia for Phulpur and Kalol plants
National Fertilizers Limited (NFL): Green hydrogen integration studies
Rashtriya Chemicals and Fertilizers (RCF): Potential green ammonia projects in Maharashtra
Private players (Chambal, Coromandel, Deepak): Evaluating green hydrogen economics
Transitioning fertilizer production to green hydrogen offers dual benefits:
Emission reduction: Eliminating ~2.5 tonnes of CO₂ per tonne of ammonia produced
Energy security: Reducing dependence on imported LNG (India imports over 50% of natural gas requirements)
Steel Sector:
India is the world's second-largest steel producer (approx. 125 million tonnes annually), with significant emissions from coal-based blast furnaces. Green hydrogen enables:
Direct Reduced Iron (DRI) production: Replacing coking coal with hydrogen in ore reduction (companies like JSW Steel, Tata Steel, ArcelorMittal Nippon Steel exploring this pathway)
Blast furnace injection: Partial hydrogen substitution (10-30% initially) reducing coal consumption
Electric Arc Furnace (EAF) optimization: Using green hydrogen-produced DRI as feedstock
Challenges include higher capital costs for retrofits and technology readiness—hence the ₹455 crore pilot project allocation for steel sector demonstrations.
Investors and financial stakeholders
Private Sector Investors:
Large industrial conglomerates have announced substantial green hydrogen commitments:
Reliance Industries: ₹75,000 crore investment targeting electrolyser manufacturing (10 GW capacity), green hydrogen production, and fuel cell development by 2030
Adani Group: $50 billion investment in renewable energy and green hydrogen ecosystem over next decade
Greenko: $10 billion in green hydrogen and ammonia projects in Andhra Pradesh and Karnataka
JSW Group: ₹1 lakh crore in green energy including green hydrogen for steel decarbonization
Tata Group: Multiple pilot projects exploring green hydrogen across chemicals, steel, and mobility sectors
Financial Institutions:
India Renewable Energy Development Agency (IREDA): Primary financing agency providing soft loans at concessional interest rates for green hydrogen projects
Rural Electrification Corporation (REC): Co-financing large-scale renewable-hydrogen projects
State Bank of India (SBI), HDFC Bank, ICICI Bank: Developing specialized green hydrogen financing products
Green Climate Fund, Asian Development Bank: International financing for technology transfer and capacity building
Foreign Direct Investment:
Several international players are entering India's green hydrogen market:
Air Liquide (France): Technology partnerships with Indian manufacturers
Linde (Germany): Hydrogen infrastructure development
Chart Industries (USA): Cryogenic equipment for hydrogen liquefaction
Cummins, Nel Hydrogen, McPhy, ITM Power: Technology licensing agreements with Indian electrolyser manufacturers
Investment estimates suggest ₹8 lakh crore ($95-100 billion) total investment required by 2030 to achieve Mission targets, with approximately:
45% from domestic private sector
35% from foreign direct investment
20% from government incentives and public sector undertakings
State governments (examples like AP, UP initiatives)
Andhra Pradesh:
Leading state in green hydrogen initiatives with:
Comprehensive Green Hydrogen Policy (2022): Offering 25% capital subsidy on electrolyser costs, exemptions on electricity duty and land allocation in industrial parks
Greenko's ₹60,000 crore project: Establishing 5 GW electrol yser capacity and 3 MMT green ammonia production in Kakinada
Partnerships with: Sembcorp, ReNew Power for hydrogen hubs in coastal districts
Port infrastructure: Developing bunkering facilities at Kakinada and Krishnapatnam ports
Gujarat:
Strategic positioning as hydrogen export hub:
Gujarat Green Hydrogen Policy: Financial incentives including stamp duty exemptions, subsidized land, and priority water allocation
Reliance's Jamnagar project: Integrated electrolyser manufacturing and green hydrogen production
Adani's Mundra project: Export-oriented green ammonia facility with dedicated port infrastructure
GIFT City: Emerging as green hydrogen finance and trading hub
Khavda Renewable Energy Park: World's largest renewable energy park (30 GW target) with co-located hydrogen production
Uttar Pradesh:
Focusing on fertilizer sector decarbonization:
Green hydrogen integration at IFFCO facilities in Phulpur and Aonla
Industrial corridor development: Along the Delhi-Mumbai Industrial Corridor incorporating hydrogen infrastructure
State subsidies: Up to 35% capital subsidy for green hydrogen projects, reducing production costs by approximately 10%
Rajasthan:
Leveraging exceptional solar resources:
Rajasthan Green Hydrogen Policy: Land allocation in Barmer, Jaisalmer districts with high solar irradiance
Bhadla Solar Park integration: Co-locating hydrogen production at India's largest solar park (2,245 MW operational capacity)
Export orientation: Proximity to Kandla Port for domestic transport and potential export
Mining sector applications: Green hydrogen for explosives and fuel cell trucks in mining operations
Odisha:
Steel sector focus:
Collaboration with Tata Steel, JSW Steel: Pilot green hydrogen-based DRI projects
Strategic advantages: Proximity to iron ore reserves and Paradip Port for imports/exports
Policy incentives: 100% electricity duty exemption for green hydrogen producers for 15 years
What are the Key Benefits and Advantages of the Policy & Mission?
Economic advantages (jobs, investment)
The National Green Hydrogen Mission projects massive economic multiplier effects:
Employment Creation:
Direct jobs by 2030: Over 600,000 across manufacturing, project development, operations, and maintenance
Indirect jobs: Additional 1.5-2 million in ancillary industries (components, logistics, services)
Skilled workforce requirements: Electrical engineers, chemical engineers, technicians, safety specialists
Job distribution across value chain:
Electrolyser manufacturing: ~100,000 jobs in assembly, quality control, supply chain management
Renewable energy projects: ~200,000 jobs in solar/wind plant construction, operation
Hydrogen production facilities: ~150,000 jobs in plant operations, maintenance, safety
Transportation and storage: ~50,000 jobs in pipeline operations, cryogenic facilities, bunkering
End-use applications: ~100,000 jobs in fuel cell vehicles, industrial process integration
Investment Mobilization:
Total projected investment of ₹8 lakh crore ($95-100 billion) by 2030:
Electrolyser manufacturing capacity: ₹25,000-30,000 crore for establishing 15-20 GW capacity
Renewable energy infrastructure: ₹4.5-5 lakh crore for 125 GW dedicated capacity
Hydrogen production facilities: ₹1.5-2 lakh crore for electrolysis plants, balance of plant, storage
Transmission and distribution: ₹50,000-75,000 crore for pipeline networks, refueling stations, port infrastructure
R&D and skill development: ₹5,000-10,000 crore in technology development, training institutes
GDP Contribution:
By 2030, green hydrogen sector could contribute approximately 1.2-1.5% of India's GDP, creating a new industrial pillar alongside IT services, automotive manufacturing, and pharmaceuticals.
Environmental benefits (emission reduction)
Direct Emission Reductions:
The Mission targets annual abatement of 50 MMT CO₂-equivalent by 2030 through:
Replacement of grey hydrogen in refineries and fertilizers: ~35 MMT CO₂ (eliminating fossil fuel-based hydrogen production)
Steel sector decarbonization pilots: ~5 MMT CO₂ (from hydrogen-based DRI, blast furnace injection)
Transportation sector: ~3 MMT CO₂ (fuel cell vehicles, hydrogen buses/trucks)
Power generation and grid balancing: ~7 MMT CO₂ (displacing diesel/gas-based peaking plants)
Comparative context:
50 MMT CO₂ reduction equals approximately 2.5% of India's total annual emissions (~2 billion tonnes)
Equivalent to removing ~10 million passenger vehicles from roads permanently
Comparable to annual CO₂ sequestration of ~2.3 billion trees
Co-Benefits:
Air quality improvement: Eliminating particulate matter, NOx, SOx emissions from fossil fuel combustion in industrial processes
Water conservation: Closed-loop systems in hydrogen production reduce water consumption compared to coal mining and thermal power generation
Land use efficiency: Co-locating hydrogen production with renewable energy parks maximizes land productivity
Alignment with Climate Goals:
Green hydrogen directly supports:
NDC commitments: Reducing emissions intensity of GDP by 45% by 2030 (2005 baseline)
Long-term Net Zero 2070: Providing decarbonization pathway for hard-to-abate sectors where other technologies cannot deliver
International climate finance eligibility: Accessing concessional finance from Green Climate Fund, World Bank, ADB for hydrogen projects
Energy security improvements
Reduction in Fossil Fuel Import Dependency:
India's current energy import bill:
Crude oil imports: ~$100-120 billion annually (85% import dependence)
Natural gas imports (LNG): ~$25-30 billion annually (53% import dependence)
Coal imports: ~$15-20 billion annually (primarily coking coal for steel)
Green Hydrogen Impact by 2030:
Cumulative import bill reduction: ₹1 lakh crore (~$12-15 billion) through substitution of imported LNG, naphtha, and coking coal
Energy trade balance improvement: Potential export revenues of $10-15 billion annually (if 5-8 MMT export targets materialize)
Price volatility mitigation: Reducing exposure to global fossil fuel price shocks (as experienced in 2022 when oil prices exceeded $120/barrel and LNG prices surged 10x in Europe)
Domestic Energy Resource Optimization:
Abundant renewable potential: India has ~750 GW technical potential for solar, 302 GW for onshore wind, 70 GW for offshore wind—far exceeding current and projected electricity demand
Energy storage through hydrogen: Converting "surplus" renewable electricity (during high-generation/low-demand periods) into hydrogen for later use provides grid flexibility and maximizes renewable energy utilization
Strategic energy reserves: Hydrogen storage (in salt caverns, underground reservoirs) enables long-term energy security comparable to petroleum strategic reserves
Geopolitical Advantages:
Reduced petro-state dependence: Decreasing reliance on Middle Eastern oil and Russian natural gas reduces geopolitical vulnerability
Energy partnerships diversity: New bilateral energy relationships with hydrogen importers (Japan, South Korea, EU) diversify India's energy diplomacy portfolio
Technology leadership: First-mover advantages in electrolyser manufacturing and large-scale deployment position India as technology exporter rather than perpetual technology importer
Export and global leadership potential
Global Market Opportunity:
International projections estimate global green hydrogen trade reaching:
10-15 MMT by 2030 (market value $30-50 billion)
150-200 MMT by 2040 (market value $300-500 billion)
500+ MMT by 2050 (market value $1.5-2 trillion)
India's Competitive Advantages:
Lowest renewable electricity costs: Solar LCOEs of $0.015-0.025/kWh in Rajasthan/Gujarat—among the cheapest globally
Established export infrastructure: 200+ commercial ports, 12 major ports handling bulk chemicals, LNG, petroleum products—infrastructure adaptable for green ammonia/methanol
Chemical industry expertise: Decades of experience in ammonia production, refining, and chemical manufacturing accelerates technology adaptation
Cost-competitive labor: Significantly lower engineering, construction, and operations labor costs compared to Western countries, Australia, or Japan
Strategic geography: Proximity to Middle East (6-7 days shipping), East Asia (10-12 days), Europe (14-16 days via Suez) compared to Australian or Chilean competitors
Target Export Markets:
Japan:
Announced plans to import 3 MMT hydrogen by 2030, scaling to 20 MMT by 2050
Already signed preliminary agreements with Indian Oil Corporation, Adani Group
Willingness to pay premium prices (targeting $2-3/kg by 2030) due to limited domestic renewable resources
South Korea:
Targeting annual imports of 1.94 MMT by 2030, 2.6 MMT by 2040
Industrial giants (Samsung, Hyundai, POSCO) exploring partnerships with Indian producers
Government-backed financing for overseas hydrogen projects
European Union:
REPowerEU plan targets 10 MMT green hydrogen imports by 2030
India-EU discussions include potential bilateral hydrogen corridors
Carbon pricing through EU Carbon Border Adjustment Mechanism (CBAM) makes low-cost Indian green hydrogen economically attractive
Southeast Asia & Middle East:
Singapore: Import-dependent economy requiring 0.5-1 MMT hydrogen annually for industry, shipping
UAE, Saudi Arabia: While domestic producers, also potential partners for trans-regional hydrogen trade networks
Indonesia, Thailand: Emerging markets for green ammonia in fertilizers and shipping fuel
Export Product Mix:
India will likely export:
Green Ammonia (60-70%): Easier to transport (liquid at -33°C under atmospheric pressure) compared to hydrogen (-253°C); dual markets in fertilizers and shipping fuel
Green Methanol (15-20%): Drop-in replacement for conventional methanol; maritime fuel and chemical feedstock
Direct Hydrogen (10-15%): For specialized applications requiring high-purity hydrogen; transported as compressed or liquefied hydrogen
Derivatives (5-10%): Including synthetic aviation fuels, green steel (embodied hydrogen), hydrogen-based chemicals
Technology Export Potential:
Beyond commodity exports, India can become an electrolyser technology exporter if domestic manufacturing achieves scale and innovation:
Targeting developing economies: Lower-cost electrolysers suitable for African, Latin American, Southeast Asian markets
Engineering services: Project development, EPC services, operations & maintenance contracts in overseas hydrogen projects
Skill training programs: Exporting India's workforce expertise in green hydrogen deployment
What are the Common Misconceptions About India's Green Hydrogen Plans?
Hydrogen will replace all fossil fuels immediately
Misconception: Green hydrogen will rapidly replace oil, gas, and coal across all applications within a few years.
Reality: Green hydrogen's adoption will be gradual and sector-specific, with a realistic multi-decade transition timeline:
Near-term priority sectors (2025-2030):
Refining and fertilizers: Where hydrogen is already used, and infrastructure modifications are limited (direct grey-to-green substitution)
Industrial feedstock: Chemicals, methanol production, steel-making pilots
Niche mobility: Buses, trucks, forklifts in controlled fleets with centralized refueling
Medium-term adoption (2030-2040):
Steel sector at scale: As hydrogen-based DRI technology matures and capital costs decline
Long-haul trucking and shipping: As fuel cell costs decrease and bunkering infrastructure expands
Aviation (via synthetic fuels): Hydrogen-to-jet-fuel pathways achieving commercial scale
Long-term adoption (2040-2070):
Residential heating and cooking: If pipeline infrastructure for 100% hydrogen blending is established (currently, natural gas grids can handle only ~5-20% hydrogen blending)
Universal mobility: Hydrogen fuel cell vehicles competing economically with battery electric vehicles across all segments
Seasonal energy storage: Large-scale underground hydrogen storage replacing natural gas in grid balancing
Why gradual adoption?
Cost competitiveness: Green hydrogen currently costs $4-6/kg in India; needs to reach <$2/kg to compete with fossil fuels across most applications (SIGHT incentives target $2.5-3/kg by 2030)
Infrastructure requirements: Hydrogen pipelines, refueling stations, storage facilities, safety protocols require trillions of dollars and decades to build globally
Technology maturity: Fuel cells, hydrogen turbines, shipping engines require further cost reduction and reliability improvement
Behavioral and institutional inertia: Industrial processes, business models, regulatory frameworks designed around fossil fuels cannot change overnight
India's 5 MMT target by 2030 represents approximately ~1.5-2% of the country's total primary energy consumption—a significant achievement but far from universal replacement of fossil fuels.
Costs will drop overnight (Is green hydrogen cost-competitive today?)
Misconception: Government incentives will immediately make green hydrogen cheaper than grey hydrogen and fossil fuels.
Current Cost Realities (2025):
Hydrogen Type | Production Cost (India) | Key Cost Drivers |
Grey Hydrogen (natural gas-based) | $1.2-1.8/kg | Natural gas prices, SMR plant efficiency |
Grey Hydrogen (coal-based) | $0.8-1.2/kg | Coal prices, gasification plant efficiency |
Green Hydrogen (without incentives) | $4.5-6/kg | Renewable electricity costs, electrolyser capex, capacity factors |
Green Hydrogen (with SIGHT incentives) | $2.5-3.5/kg | Government incentives bridge ~40% of cost gap |
Why Green Hydrogen Remains Expensive:
Electrolyser capital costs: Current $500-1,200/kW; needs to decline to <$300/kW for competitiveness
Renewable electricity costs: Even at $0.02/kWh, electricity represents ~50-60% of green hydrogen production cost
Capacity factors: Solar/wind intermittency limits electrolyser utilization to 30-50% unless combined with battery storage (adding costs)
Scale limitations: Global electrolyser manufacturing capacity currently ~10 GW/year; reaching 60-70 GW for India's 2030 target requires massive scale-up
Pathway to Cost Competitiveness:
India's green hydrogen can achieve $1.5-2/kg by 2035 through:
Electrolyser cost reductions: Domestic manufacturing scale economies, technology improvements (alkaline electrolysers to <$300/kW, PEM to <$500/kW)
Renewable electricity cost declines: Continued solar/wind cost reductions, particularly offshore wind (targeting <$0.02/kWh all-in costs)
Improved capacity factors: Hybrid solar-wind systems achieving >70% electrolyser capacity factors, reducing effective capex per kg of hydrogen
Carbon pricing: If India implements carbon taxes or credits ($20-40 per tonne CO₂), grey hydrogen costs increase by $0.18-0.36/kg, improving green hydrogen competitiveness
Production scale: Learning curves suggest 20-30% cost reduction per doubling of cumulative production
Bottom line: Green hydrogen's cost-competitiveness is a 2030-2040 horizon rather than immediate reality, requiring sustained policy support, technology innovation, and scale-up.
Policy incentives guarantee success
Misconception: Government programs automatically translate to market transformation and target achievement.
Real-World Implementation Challenges:
Supply-side bottlenecks:
Electrolyser supply chain: Critical components (membranes, electrodes, bipolar plates) have limited global suppliers; establishing domestic supply chains takes 5-7 years
Renewable energy interconnection delays: Despite priority provisions, actual grid connectivity for large-scale renewable projects often faces 12-24 month delays due to land acquisition, forest clearances, and transmission infrastructure constraints
Water availability: Green hydrogen production requires ~9-10 liters of demineralized water per kg of hydrogen—substantial amounts in water-scarce regions like Rajasthan/Gujarat
Demand-side uncertainty:
Industrial buyers' willingness to pay premium: Despite environmental commitments, most industrial consumers prioritize cost, not carbon emissions
Long-term offtake agreements: Banks require 15-20 year power purchase agreements (PPAs) for project financing, but most industrial consumers reluctant to commit beyond 5-7 years given technology and price uncertainty
Export market development: International hydrogen trade requires bilateral agreements, shipping logistics, safety protocols, certification mutual recognition—all in nascent stages
Regulatory and coordination gaps:
Central-state policy misalignment: Green hydrogen requires coordination between central government (MNRE), state governments (land, water, electricity distribution), multiple regulators (CERC, SERCs, PESO)—often resulting in conflicting directives
Safety regulations: Hydrogen's flammability requires stricter safety protocols than natural gas; PESO regulations still being developed, creating regulatory uncertainty for projects
Skill gaps: India needs to train >500,000 workers across the value chain—current vocational training infrastructure inadequate
Lessons from Other Sectors:
Solar sector parallels: India's solar mission launched in 2010 with 20 GW by 2022 target; actual achievement ~60 GW—a success, but taking 12+ years and requiring multiple policy iterations
Electric vehicle targets: Despite aggressive policies, EV penetration in India remains ~2% of vehicle sales as of 2024, far below initial projections, due to cost barriers and charging infrastructure gaps
Ethanol blending: Government mandated 20% ethanol blending in petrol by 2025, but achieved only ~12% due to feedstock supply constraints and economics
What's required beyond policy incentives:
Sustained political commitment: Avoiding policy reversals or reduced support when government priorities shift
Active demand creation: Mandates, procurement requirements, price guarantees for early adopters
Infrastructure coordination: Integrating hydrogen into existing industrial areas, ports, transport networks—not isolated projects
Technology risk-sharing: Government participation in early-stage commercialization where technology risks deter private investment
Success requires iterative policy refinement based on ground realities, not just initial program design.
Policy vs. mission confusion
Common confusion: Conflating the 2022 Green Hydrogen Policy with the 2023 National Green Hydrogen Mission, treating them as interchangeable.
Key Distinctions:
Aspect | Green Hydrogen Policy (2022) | National Green Hydrogen Mission (2023) |
Nature | Regulatory framework and procedural reforms | Comprehensive implementation program with budget allocation |
Scope | Cost reduction through waivers, grid access, banking | End-to-end ecosystem development—manufacturing, production, R&D, pilots |
Financial commitment | Indirect (cost savings through waivers) | Direct investment of ₹19,744 crore over FY 2023-30 |
Focus | Enabling environment for any willing producer | Mission-mode targets: 5 MMT, 125 GW, 600,000 jobs |
Duration | Ongoing with specific deadlines (e.g., ISTS waiver cutoffs) | Time-bound mission (2023-2030) with interim milestones |
Implementing agency | Primarily Ministry of Power for transmission issues; MNRE for portal | MNRE as nodal ministry; SECI as implementation agency |
Why both are necessary:
The Policy addresses "how" questions (regulatory mechanisms) while the Mission addresses "what" questions (targets, timelines, resources). Removing either would cripple the ecosystem:
Without the Policy: Even generous incentives under the Mission cannot overcome ₹25-80/kg additional costs from transmission charges, grid access delays, and procedural complexity
Without the Mission: Cost reductions from the Policy alone insufficient to bridge the $2-4/kg cost gap between green and grey hydrogen; active incentives required to de-risk investments
International analogies:
Similar dual structures exist globally:
European Union: EU Hydrogen Strategy (policy framework) + Important Projects of Common European Interest (IPCEI) funding (mission-equivalent)
United States: Inflation Reduction Act provisions (policy incentives) + DOE Hydrogen Hubs Program (mission-equivalent)
Australia: National Hydrogen Strategy (policy) + $2+ billion in federal and state funding programs (mission-equivalent)
Understanding this distinction helps stakeholders navigate:
For regulatory compliance: Refer to Green Hydrogen Policy notifications
For financial incentives: Apply under Mission-specific schemes (SIGHT, pilot projects)
For long-term planning: Align with Mission targets and timelines
When Are Major Targets Expected to be Achieved?
2030 production milestone
Primary Target: 5 MMT annual green hydrogen production capacity by 2030
Current Status (as of 2024-25):
Operational capacity: Less than 10,000 tonnes per annum from pilot and demonstration projects
Under construction: ~100,000-150,000 tonnes per annum from SIGHT-supported projects awarded in 2024
Announced projects: Over 6-8 MMT annual capacity announced by private players, but many pending financial closure, land acquisition, offtake agreements
Realistic Assessment:
MNRE Secretary Santosh Kumar Sarangi acknowledged in November 2024 that India may achieve approximately 3 MMT capacity by 2030, with the full 5 MMT target potentially realized by 2032. This revised projection accounts for:
Supply chain constraints: Global electrolyser manufacturing capacity lagging demand
Project development timelines: Large-scale industrial projects require 4-6 years from concept to commissioning
Offtake agreement delays: Industrial buyers hesitant to commit long-term due to uncertainty about green hydrogen costs and regulatory mandates
Sectoral breakdown of 2030 target:
Sector | Projected Capacity (MMT) | Primary Applications |
Refineries | 1.2-1.5 | Hydrodesulfurization, hydrocracking |
Fertilizers | 1.0-1.3 | Ammonia/urea production |
Export (Green Ammonia) | 1.0-1.5 | International markets (Japan, South Korea, EU) |
Steel | 0.3-0.5 | DRI production pilots, blast furnace injection |
Mobility & Other | 0.2-0.3 | Fuel cell vehicles, buses, forklifts |
Requirements to achieve 3-5 MMT:
Electrolyser capacity: 45-75 GW installed (accounting for 40-50% average capacity factors)
Renewable energy: 100-150 GW dedicated capacity operational
Investment: ₹5-7 lakh crore mobilized across value chain
Regulatory: Mandates or preferential procurement for green hydrogen in refining/fertilizers formalized
Interim milestones (2025, 2028)
2025 Milestones (Current Year):
Electrolyser manufacturing: 1.5 GW capacity commissioned under SIGHT Tranche-I
Green hydrogen production: 50,000-80,000 tonnes per annum from early projects achieving commercial operation
Pilot demonstrations: Completion of initial steel sector pilots (hydrogen-based DRI), mobility pilots (fuel cell buses in 5+ cities), shipping pilots (ammonia bunkering infrastructure at 2-3 ports)
Policy refinements: Issuance of comprehensive certification and standards framework by BIS
R&D: Establishment of 5-7 Centers of Excellence at IITs/CSIR labs for advanced electrolyser technologies, hydrogen storage
2027-2028 Milestones:
Electrolyser manufacturing scale-up: Cumulative 8-10 GW manufacturing capacity from multiple tranches
Green hydrogen production: 500,000-800,000 tonnes per annum, representing ~13-16% of 2030 target
Industrial integration: 10-15% of refinery hydrogen consumption transitioned to green hydrogen in early-adopter refineries
Export commencement: First commercial exports of green ammonia to Japan/South Korea (50,000-100,000 tonnes per annum)
Infrastructure: 1,000+ km hydrogen pipeline networks in industrial clusters (Gujarat, Uttar Pradesh, Maharashtra)
Renewable energy: 50-60 GW of the targeted 125 GW operational
Why interim milestones matter:
Course correction: Identifying bottlenecks (land acquisition, grid connectivity, offtake agreements) early allows policy adjustments
Investment confidence: Demonstrating visible progress maintains private sector commitment and prevents capital reallocation
Technology learning: Real-world operations generate data for optimizing electrolysers, improving capacity factors, reducing O&M costs
Skill development: Gradual scale-up allows workforce training to keep pace with industry growth
Long-term landscape to 2047/NetZero 2070
2040 Projections:
By 2040, India's green hydrogen ecosystem matures significantly:
Production capacity: 15-20 MMT per annum, representing ~30-40% of total hydrogen demand
Sectoral adoption:
Steel: 50-70% of new steel capacity using hydrogen-based processes
Heavy transport: 40-60% of long-haul trucks, buses operating on hydrogen fuel cells
Shipping: 20-30% of domestic shipping using green ammonia fuel
Fertilizers: ~80-90% green ammonia-based
Cost competitiveness: Green hydrogen achieving $1-1.5/kg, competitive with fossil-based alternatives without subsidies
Exports: 8-12 MMT per annum, making India one of top 3 global exporters
Employment: 1.5-2 million direct jobs across the value chain
2047 (India's Centenary of Independence) Ambitions:
As part of the Amrit Kaal vision for India's development by its 100th Independence Day (2047):
Universal industrial decarbonization: All hard-to-abate sectors (cement, aluminum, glass, chemicals) substantially decarbonized using green hydrogen and derivatives
Green hydrogen infrastructure: Comprehensive pipeline networks connecting production hubs to consumption centers; hydrogen refueling stations matching petrol station density in urban areas
Technology leadership: India among top 3 global innovators in electrolyser technologies, fuel cells, hydrogen storage systems
Energy exports: Green hydrogen and derivatives contributing $50-80 billion annually to export revenues
Net Zero 2070 Pathway:
Achieving Net Zero by 2070 requires green hydrogen playing a central role across sectors:
Decade | Green Hydrogen's Role | Key Milestones |
2025-2030 | Foundation building | Industrial substitution (refineries, fertilizers); pilot demonstrations |
2030-2040 | Scale-up and expansion | Steel sector transformation; heavy-duty mobility; early aviation/shipping adoption |
2040-2050 | Mainstream adoption | Hydrogen achieving cost parity; widespread infrastructure; export dominance |
2050-2060 | Deep decarbonization | Hard-to-abate sectors fully transitioned; seasonal energy storage at scale |
2060-2070 | Net Zero achievement | Residual emissions offset through hydrogen-enabled carbon capture; 100% green industry |
Challenges on the long-term horizon:
Sustaining political will: Maintaining consistent policy support across multiple government tenures (15+ election cycles)
Infrastructure investment: Estimated $500+ billion cumulative investment in pipelines, storage, refueling stations by 2070
Technology evolution: Competing technologies (batteries, synthetic fuels, direct air capture) may offer alternative pathways; green hydrogen must remain competitive
Global coordination: International standards, trade rules, carbon pricing mechanisms must align to enable seamless hydrogen trade
Continue reading this article in part 2 - https://www.greenfueljournal.com/post/part-2-ultimate-guide-to-the-national-green-hydrogen-policy-india-mission-in-2025-goals-incent
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