Green hydrogen and the Net-Zero economy: India’s path to a sustainable energyfuture

As the global urgency to combat climate change intensifies, the need for sustainable energy solutions has never been more critical. Green hydrogen has emerged as a cornerstone of the clean energy transition, offering a viable pathway to decarbonising industries, enhancing energy security, and encouraging economic resilience. India, with its abundant renewable resources and growing energy demand, is well-positioned to capitalise on this opportunity.However, for green hydrogen to become commercially viable at scale, significant advancements in infrastructure, policy frameworks, and investment mechanisms are essential. Recognising these imperatives, the leadership roundtable on Unlocking Opportunities in Green Molecules, hosted by PETRONAS and Gentari at India Energy Week, convened key stakeholders to deliberate on accelerating India’s hydrogen economy.

The roundtable featured government-owned enterprises, hydrogen producers, finance sector representatives, and think tanks, all aligned in their commitment to shaping India’s hydrogen future. The discussions underscored the necessity of industry collaboration, regulatory clarity, and long-term financial strategies to bridge existing gaps and establish India as a global leader in green hydrogen.

Scaling hydrogen adoption: Infra and policy roadmap
India has made remarkable strides in renewable energy, surpassing 200 GW in total capacity, including 90 GW of installed solar as of October 2024 — a major step towards its broader 500 GW target by 2030. With a supportive policy momentum in place, India is well-positioned to transition from renewable capacity to creating a robust hydrogen ecosystem with the support of large-scale infrastructure investments. The roundtable discussions highlighted the urgency of implementing clear hydrogen obligations and domestic demand aggregation policies to provide stability and drive industrial adoption beyond initial government incentives.

Industry leaders drew parallels with the early development of India’s solar sector, emphasising that hydrogen requires sustained policy support to attain cost competitiveness. While sectors, including fertilisers and refining, present immediate demand opportunities, concerns over asset utilisation and economic feasibility continue to hinder large-scale adoption. Long-term hydrogen off-take agreements, supported by policy mechanisms, could help establish a stable market. Additionally, a structured hydrogen pricing framework and the introduction of carbon credit mechanisms were identified as crucial levers for improving commercial viability.

Beyond policy support, infrastructure remains a critical challenge. Large-scale hydrogen deployment requires investments in transportation networks, pipelines, ports, and storage facilities. The discussions emphasised the need to address regulatory gaps in safety and logistics to facilitate hydrogen adoption. Encouraging domestic electrolyser manufacturing through incentives or import restrictions could further strengthen India’s hydrogen ecosystem, reducing reliance on foreign technology and enhancing supply chain resilience.

As the clean energy arm of PETRONAS, Gentari is accelerating industrial decarbonisation and advancing the hydrogen value chain across Asia Pacific — with India playing a central role in this progress. As of 31 December 2024, Gentari has developed 175 KTPA of hydrogen opportunities, including reaching the final investment decision (FID) for a 1 MTPA green ammonia plant in India in partnership with AM Green — a major milestone in scaling up clean hydrogen production in the region. India is a strategic focus in Gentari’s portfolio, complementing ongoing hydrogen initiatives in Malaysia and Singapore. These efforts contribute to building a Southeast Asia hydrogen backbone that connects key supply and demand centers. This includes exploring cross-border hydrogen exports via pipeline from Malaysia to Singapore with Senoko Energy Pte Ltd and collaborating with MISC Bhd on shipping and floating solutions for clean ammonia to enhance our logistics capabilities.

Financing the hydrogen economy: Unlocking investments for green growth
The production cost of green hydrogen, currently ranging between $3–4 per kg, remains a key obstacle to widespread adoption. To bridge this cost gap, the roundtable emphasised the need for innovative financial models, including public-private partnerships and blended finance mechanisms, to de-risk investments and attract large-scale funding.

While India’s 2025 budget introduced a partial credit guarantee to improve financing access, industry stakeholders advocated for additional measures, such as a first-loss guarantee structure, to further mitigate investor risks. The growing demand for ESG-aligned investments presents an opportunity to draw institutional capital into the hydrogen sector, but concerns surrounding technology risks, off-take commitments, and renewable power stability must be addressed to enhance investor confidence.

The discussions also positioned India within the global hydrogen landscape. While policy momentum in Japan, South Korea, and the EU is strong, securing binding off-take agreements remains a challenge due to market hesitancy, liquidity constraints, and unclear pricing signals. Learning from Japan and South Korea’s long-term Contracts for Difference (CfD) schemes could provide India with strategic insights on structuring off-take agreements to accelerate hydrogen commercialisation. Additionally, India’s efforts to foster a hydrogen trade ecosystem across Asia were highlighted as crucial for regional collaboration and market expansion.

India’s hydrogen leadership: Building a resilient and competitive market
Despite global uncertainties surrounding hydrogen policy, India remains a strong contender in the green hydrogen race. The country’s proactive policy initiatives, government auctions, and off-take agreements position it as a frontrunner in the transition. Notable developments, such as the AM Green Kakinada project reaching FID, underscore India’s commitment to scaling hydrogen production. This progress mirrors global momentum, with countries

increasingly mandating hydrogen use across sectors, including ammonia blending in power generation and hydrogen adoption in refining, steelmaking, shipping, and aviation.

The roundtable discussions reaffirmed the need for continued collaboration between industry, government, and financial institutions to address remaining barriers and accelerate adoption. By promoting strategic partnerships and securing long-term off-take commitments, India can establish itself as a global leader in green hydrogen. With abundant renewable resources, progressive policies, and a strategic location, India has the potential to drive Asia’s energy transition and become a major supplier of hydrogen to international markets.