By Nidhi Dua
Green hydrogen is emerging as a key driver of India’s clean energy transition. As the country advances towards its net zero goals, green hydrogen and its derivatives are playing a crucial role in decarbonising energy-intensive sectors such as steel, transportation and fertilisers. By offering a sustainable alternative to fossil fuels, it can transform industrial energy use while supporting economic growth and emission reductions. At the centre of this transition is the National Green Hydrogen Mission (NGHM), which aims to make hydrogen production cost-competitive and achieve a production capacity of 5 million metric tonnes per year by 2030.
With abundant renewable resources, India is well positioned for large-scale hydrogen production. The widespread adoption of green hydrogen could redefine India’s industrial decarbonisation, strengthen energy security, create new economic opportunities and establish the country as a global leader in clean energy. However, success hinges on how quickly green hydrogen production scales up and high-emitting sectors adopt it in operations.
Renewable Watch examines the current landscape, key developments and policy measures driving green hydrogen integration across India’s steel, fertiliser and transportation sectors…
Steel sector
Policy landscape
According to the World Steel Association, the steel industry contributes nearly 7 per cent of global greenhouse gas emissions while accounting for only 0.7 per cent of global GDP, making it one of the most carbon-intensive sectors. In India, the world’s second largest crude steel producer, decarbonising the sector is crucial to achieve climate and sustainable development goals. To advance this effort, the Ministry of New and Renewable Energy (MNRE) issued guidelines in February 2024 for pilot projects using green hydrogen in steelmaking under the NGHM. The government allocated Rs 4.55 billion for these projects through FY 2029-30 to test green hydrogen use across various steelmaking processes and facilitate large-scale adoption for long-term emission reduction.
Current status
According to the Federation of Indian Chambers of Commerce (FICCI) and EY report titled “India’s Green Hydrogen Ecosystem: Strategic Opportunities, Key Challenges and Demand Potential”, hydrogen-based direct reduced iron (DRI) technology is one of the most promising decarbonisation pathways, offering up to 90 per cent emission reduction compared to coal-based methods.
Speaking at Renewable Watch’s 10th Annual Conference on Green Hydrogen in India, Naveen Ahlawat, Head of Green Hydrogen, Gasification and CCSU, Jindal Steel and Power Limited (JSPL), shared that the current decarbonisation measures in the steel industry primarily focus on enhancing circularity, improving energy and process efficiency and expanding the use of renewable power. These efforts help reduce emissions within the existing production framework. Building upon these, next-generation solutions such as the use of low-carbon hydrogen, the deployment of carbon capture, utilisation and storage (CCSU) technologies, and a shift towards alternative, cleaner fuels hold further potential for deep emission cuts across steelmaking operations. He also highlighted that transitioning to green steel will have minimal cost implications across key industries. In the wind energy and automotive sectors, using green steel would increase product costs by roughly 1 per cent compared to grey steel. For home appliances like washing machines, switching from grey to green steel will raise costs by roughly 4 per cent. This indicates that decarbonisation in steel is both technologically and economically feasible.
Industry developments
Key players in the steel sector have begun the deployment of green hydrogen in their operations. Ahlawat shared that JSPL uses synthetic gas (syngas) to produce low-carbon steel. The company’s operations currently use about 55 per cent hydrogen, with plans to shift to full hydrogen deployment. The company is working towards the deployment of syngas injection into the blast furnace. This project will be commissioned by December 2025.
Meanwhile, Tata Steel has developed API X65 ERW, India’s first hydrogen-grade pipeline steel. These pipes were tested for the transport of 100 per cent pure hydrogen at 100 bar pressure.
Fertiliser sector
Current status
According to the FICCI-EYs’ report, the fertiliser industry is one of the largest global consumers of hydrogen, mainly for ammonia production. Producing 1 tonne of ammonia requires about 178 kg of hydrogen, traditionally sourced from fossil fuels, leading to high carbon emissions. In India, ammonia consumption is around 17-19 million tonnes (mt) per year, with fertilisers accounting for over half of the country’s hydrogen demand. Since most of this hydrogen comes from imported natural gas, the industry remains both carbon-intensive and import-dependent. Shifting to green hydrogen-based ammonia synthesis offers significant decarbonisation potential.
Policy initiatives
The MNRE is implementing the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme under the NGHM. Executed through the Solar Energy Corporation of India (SECI), the scheme supports the production and offtake of green hydrogen and green ammonia.
Recently, SECI concluded landmark auctions for the offtake of 724,000 tonnes of green ammonia per year to the fertiliser industry. The projects, awarded under the SIGHT scheme, Mode 2A, Tranche I, span 13 fertiliser plants across the country, promoting a regionally distributed green ammonia network aligned with domestic demand centres. Among the key winners, the ACME group secured the largest capacity of 370,000 tonnes per annum (tpa) across six projects, followed by Jakson Green with 85,000 tpa. The SCC Infrastructure and InSolare Energy consortium won 85,000 tpa through two bids, while other successful participants included NTPC Renewable Energy Limited, Oriana Power, Onix Renewable, and Suryam International.
Transport sector
Green hydrogen is increasingly being used in the transport sector to power fuel cell vehicles, reduce emissions and promote cleaner mobility across the road, railway, aviation and shipping sectors.
Road transport
In February 2024, the MNRE issued the Scheme Guidelines for Implementation of Pilot Projects for Use of Green Hydrogen in the Transport Sector under the NGHM. The guidelines aim to promote the development of hydrogen-fuelled vehicles and refuelling infrastructure across India. Building on this, in March 2025, the MNRE launched five pilot projects to deploy 37 hydrogen-powered buses and trucks, including 15 fuel cell-based and 22 hydrogen internal combustion engine vehicles, along with nine hydrogen refuelling stations. The government has allocated Rs 2.08 billion for the projects, which are expected to be commissioned within 18 to 24 months.
Ports and shipping
In September 2025, India inaugurated its first port-based green hydrogen pilot project at V.O. Chidambaranar Port in Tamil Nadu. Set up at a cost of around Rs 0.03 billion, the facility produces 10 Nm³ of green hydrogen per hour to power street lights and an electric vehicle charging station within the port colony.
In October 2025, three major ports – the Deendayal Port Authority (Gujarat), the V.O. Chidambaranar Port Authority (Tamil Nadu) and the Paradip Port Authority (Odisha) – were recognised as green hydrogen hubs under the NGHM, marking a key step towards developing an integrated hydrogen ecosystem across India’s maritime infrastructure.
Railways
In August 2025, Indian Railways announced plans to launch its first hydrogen-powered train under the Hydrogen for Heritage programme. Valued at Rs 1.36 billion, the project completed load testing at the Integral Coach Factory in Chennai. The 10-coach diesel-electric multiple unit prototype will run between Jind and Sonipat in Haryana, covering 356 km daily and carrying over 2,600 passengers.
Aviation
In the aviation sector, in February 2024, Cochin International Airport Limited (CIAL) signed an MoU with Bharat Petroleum Corporation Limited (BPCL) to establish a green hydrogen plant within the airport premises.
Building on this, in March 2025, BPCL entered into a collaboration with BluJ Aerospace, the Agency for New and Renewable Energy Research and Technology, and CIAL to develop the world’s first hydrogen-fuelled vertical take-off and landing aircraft ecosystem. The partnership marks a major step in clean aviation and highlights India’s push towards hydrogen-powered air mobility.
Outlook
India is entering a crucial phase in its green hydrogen journey, with early projects in steel, fertiliser and transport turning the NGHM into action. At Renewable Watch’s 10th Annual Conference on Green Hydrogen, Harish Jayaram, Vice-President – Business Development, Hygenco Green Energies, highlighted that the Michael Liebreich hydrogen ladder helps identify areas where hydrogen use delivers the most impact. He noted that industries such as fertilisers, methanol, hydrocracking, hydrogenation and desulphurisation rely heavily on hydrogen, making the switch from grey to green hydrogen essential for deep emission cuts.
The next major applications include steelmaking, shipping, aviation and long-duration grid balancing, where hydrogen can achieve major reductions. The steel industry alone could cut 120-200 mt of carbon annually using green DRI, while refineries and fertiliser plants could together abate 55-150 mt through green hydrogen and ammonia.
In the mobility segment, hydrogen could reduce 120-180 mt of carbon each year. Smaller opportunities also exist in glass and high-heating industries, which could abate 1-6 mt annually. However, in areas such as metro trains and buses, urban delivery and taxis, local ferries, etc., hydrogen competes with cheaper and more efficient electrification and bio-based solutions. These areas are likely to depend more on electricity or hybrid systems due to better cost and efficiency.
Going forward, industries with strong potential for hydrogen use should adopt it at the earliest to accelerate decarbonisation. Early adoption will help reduce emissions, lower long-term costs and enhance energy security. Swift action now can position India as a global leader in industrial hydrogen deployment and clean energy innovation.
