India’s Green Hydrogen Roadmap

India’s energy vulnerability, highlighted by the Indian Prime Minister’s appeal to curb petrol and diesel use, cannot be resolved through household frugality alone, as imported fossil fuels remain deeply embedded in the country’s industrial economy. India’s aspiration to move beyond short-term household energy conservation requires a fundamental restructuring of its industrial economy through the strategic scaling of green hydrogen to replace embedded fossil-fuel dependence. 

What is Green Hydrogen? 

• About: Green hydrogen is hydrogen fuel produced through electrolysis of water using renewable energy sources- such as wind, solar, or hydropower.  

  • In this process, an electrolyzer uses an electrical current to split water (H2O) into its component elements i.e., oxygen (O2) and hydrogen (H2). 
  • It is considered “green” because the entire production cycle is virtually free of greenhouse gas emissions, contrasting sharply with other forms of hydrogen production that rely on fossil fuels.  

• National Green Hydrogen Mission (NGHM), 2023: It is a landmark initiative by the Ministry of New and Renewable Energy (MNRE) aimed at positioning the country as a global hub for the production, utilization, and export of green hydrogen and its derivatives. Core Objectives by 2030 include: 

  • Production Capacity: Develop a Green Hydrogen production capacity of at least 5 Million Metric Tonnes (MMT) per annum. 
  • Renewable Energy Integration: Add approximately 125 GW of renewable energy capacity to power the electrolysis process. 
  • Investment: Attract over ₹8 lakh crore in total investments. 
  • Economic & Social Impact: Create over 6 lakh jobs and reduce fossil fuel imports by more than ₹1 lakh crore. 
  • Environmental Impact: Abate nearly 50 MMT of annual greenhouse gas emissions. 

• Color Spectrum of Hydrogen: Hydrogen is classified by colors based on the production method and the carbon footprint associated with that method.  

What are the Key Applications of Green Hydrogen? 

• Decarbonizing the Steel Industry: Steel production is one of India’s most carbon-intensive sectors. Traditionally, blast furnaces use coking coal to remove oxygen from iron ore. Green hydrogen replaces coking coal as the reducing agent in the Direct Reduced Iron (DRI) process. The only emission is water vapor.  

  • The Ministry of Steel has been allocated Rs. 455 crore for implementation of pilot projects for use of green hydrogen in the steel sector till FY 2029-30 under NGHM. 
  • Private giants like Tata Steel and Jindal Steel Works (JSW) are actively piloting Hydrogen-DRI plants. Tata Steel has successfully injected around 6Kg/(ton of hot metal) of Hydrogen resulting in 7-10% of CO2 emission reduction per tonne of crude steel.  

    • Jindal Steel Works (JSW) has implemented a carbon capture and storage facility with 100 tonnes per day (TPD) capacity at its Direct Reduced Iron (DRI) plant at Dolvi (Maharashtra). The captured carbon is to be utilized in the food and beverages industry.  

• Transforming Fertilizer Manufacturing: India remains the 2nd-largest consumer and 3rd-largest producer of Fertilizers globally.  

  • Ammonia (NH3) production is a major driver of natural gas imports. Green hydrogen is combined with atmospheric nitrogen to produce green ammonia, which is then used to manufacture urea and complex fertilizers.  
  • The Solar Energy Corporation of India (SECI) has signed 10-year contracts to supply 7,24,000 tonnes of green ammonia every year to 13 fertilizer plants. This move is expected to save India roughly $2.5 billion in foreign currency over the next decade.  

• Greening Refineries and Petrochemicals: Refineries require vast amounts of hydrogen to remove sulfur from crude oil products (desulfurization) and to upgrade heavy crude. Conventional hydrogen, which is currently made from natural gas using a process called Steam Methane Reforming, can be replaced by green hydrogen.  

  • Indian Oil Corporation (IOCL) is set to operationalize India’s first green hydrogen plant at its Panipat Refinery.  

    • The objective is to replace the grey hydrogen currently used, significantly reducing the refinery’s Scope 1 emissions (direct greenhouse gas (GHG) emissions released into the atmosphere). 

  • SECI is launching green hydrogen projects for oil refineries, with a capacity of 30,000 tonnes per year. 

• Clean Fuels for Shipping and Ports: The shipping industry needs alternative fuels to move away from heavy fuel oil. Green hydrogen or its derivative, green methanol/ammonia, acts as a clean fuel for ships (“bunkering“).  

  • The government has notified three major ports, Deendayal Port (Kandla), V.O. Chidambaranar Port (Tuticorin), and Paradip Port (Odisha), as Green Hydrogen Hubs.  
  • These hubs are being developed to store, distribute, and provide fueling services for ships, capitalizing on India’s strategic position along the global maritime trade route.   

• Powering Heavy-Duty Transport: While battery EVs are effective for small vehicles, they struggle with the weight and charging time requirements of heavy trucks and buses. Hydrogen Fuel Cells generate electricity on-board, offering long ranges and fast refueling times comparable to diesel vehicles.  

  • Under the NGHM, 5 pilot projects have been sanctioned to deploy 37 hydrogen-fueled buses and trucks across 10 diverse topographic and climatic routes.  
  • These are supported by 9 dedicated hydrogen refueling stations to test the commercial viability of Fuel Cell Electric Vehicles (FCEVs) infrastructure.   

• Grid Balancing and Energy Storage: India’s grid stability faces challenges due to the intermittent nature of solar and wind power. During peak solar/wind hours, excess energy is diverted to electrolyzers.  

  • The resulting hydrogen is stored in tanks or salt caverns and converted back into electricity via fuel cells during the night or during low-generation periods.  
  • NTPC Limited is building a massive Green Hydrogen Hub at Pudimadaka, Andhra Pradesh, which leverages renewable energy to produce hydrogen on a scale that can provide grid-scale storage, serving as a model for future decentralized power systems.  

• Producing Sustainable Aviation Fuels and Industrial Feedstocks: Beyond energy, hydrogen is a fundamental chemical building block. Green hydrogen can be used to produce synthetic hydrocarbons (e-fuels) for aviation (Sustainable Aviation Fuel – SAF).  

  • OXCCU, a England based company that turns carbon dioxide and hydrogen into usable products, has raised $22.7 million to make sustainable aviation fuel (SAF) more affordable.  
  • The technology uses a special catalyst to directly convert CO2 and hydrogen into cleaner, greener fuels for the aviation industry.

What are the Key Issues Associated with India’s Green Hydrogen Ambitions? 

• Green Premium and Cost Competitiveness Issues: The primary challenge is that green hydrogen remains significantly more expensive than “grey” hydrogen produced from natural gas. The cost of electrolysis is driven by the price of renewable energy and the capital expenditure (CAPEX) for electrolyzers.  

  • As of 2026, green hydrogen costs in India hover between ₹397–₹560 per kg, whereas fossil-fuel-based grey hydrogen typically costs ₹150–₹200 per kg.  
  • Without sustained government support through the SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme, industrial users are unlikely to switch to the cleaner alternative voluntarily.  

• High Capital Intensity and Technological Gaps: Manufacturing electrolyzers—the core technology for green hydrogen—requires specialized materials and high-precision engineering. India is heavily dependent on imported components for electrolyzer stacks, such as specialized membranes and catalysts (e.g., iridium or platinum).  

  • While the NGHM includes incentives for indigenous manufacturing, creating a domestic supply chain for these critical minerals and high-tech components is a long-term R&D challenge that limits immediate scalability.  

• Water Constraints and Sustainability Concerns: Green hydrogen production is extremely water-intensive. To produce 1 kg of hydrogen via electrolysis, approximately 9 to 11 liters of high-purity demineralized water are required.  

  • Many of India’s industrial hubs and potential production zones (e.g., parts of Rajasthan or Gujarat) are already water-stressed.  
  • Large-scale hydrogen plants must invest in water-treatment infrastructure (such as desalination) to avoid competing with local communities for scarce water resources, which further increases production costs.  

• Inadequate Storage and Transport Infrastructure: Hydrogen is the lightest element; it is difficult to store and transport safely because it can embrittle steel pipelines and is highly flammable.  

  • India’s existing natural gas pipeline network cannot simply be repurposed for 100% hydrogen without expensive retrofitting or material upgrades.  
  • Transporting hydrogen over long distances currently requires high-pressure tube trailers or cryogenic liquid tankers, which are costly and energy-intensive, negating some of the environmental benefits if not managed efficiently.  

• Nascent Safety and Regulatory Frameworks: While the government has notified the definition of Green Hydrogen, comprehensive national safety standards for handling, storage, and transport, especially for a high-pressure economy, are still in the nascent stages of enforcement.       

  • For ports like Kandla or Tuticorin to become global “Green Hydrogen Hubs,” they must develop specialized safety protocols that are currently untested at the scale of millions of tonnes per annum.  

• Intensifying Global Competition: India aims to be a global exporter, but it faces stiff competition. Other nations with vast renewable resources (e.g., Australia, Chile, and countries in the Middle East) are also heavily subsidizing their hydrogen sectors.  

  • If India is unable to scale up production at a competitive pace, it may face greater reliance on imported technologies and could find it challenging to secure a significant share of the emerging global hydrogen market.   

• Limited Domestic R&D and Innovation Capacity: India has limited focus on cutting-edge research in hydrogen storage and transport technologies.  

  • India spends only 0.6% of its GDP on R&D, far below leaders like the US (3.4%), China (2.6%), and South Korea (5.3%). This low investment slows down the development of new, efficient technology, creating a major hurdle for the widespread adoption of green hydrogen in India. 
  • A lack of specialized engineering firms to support modular, application-specific electrolyser deployment for local industries, such as the chemical or glass industries, prevents the creation of a durable domestic market ecosystem.

What Measures can India Adopt to Accelerate Adoption of Green Hydrogen?

• Scaling “SIGHT” Incentives for Cost Parity: The Strategic Interventions for Green Hydrogen Transition (SIGHT) program, provides direct financial support for both electrolyser manufacturing and hydrogen production.  

  • Expanding this to include specific small modular electrolysers (10 kW to 2 MW) would allow smaller, dispersed industrial units to adopt green hydrogen without requiring massive, centralized infrastructure.   
  • Increase production-linked incentives (PLI) to bridge the cost gap between grey hydrogen and green hydrogen until economies of scale are achieved.  

• Developing “Hydrogen Valleys” and Industrial Clusters: Instead of dispersed projects, India should concentrate production and demand in dedicated industrial clusters. Strengthen the Hydrogen Valley Innovation Clusters (HVIC) by co-locating production plants with major refineries, steel plants, and fertilizer units.  

  • These regional hubs co-locate production and end-use (e.g., refineries or fertilizer plants), reducing the massive costs associated with midstream transport, storage, and purification, which can otherwise account for 70-85% of delivered costs.  
  • Utilize hubs like Kandla (Deendayal Port) and Paradip to link production directly to industrial demand centers, minimizing transport costs and safety risks.   

• Regulatory Mandates for “Green” Consumption: Similar to Renewable Purchase Obligations (RPO), the government can introduce Green Hydrogen Purchase Obligations (GHPO) for hard-to-abate sectors like fertilizers and petroleum refining.  

  • This creates “bankable” demand, providing the financial certainty that project developers need to secure low-cost “green debt.”   

• Enhancing Renewable Energy “Firmness”: To make hydrogen commercially viable, electrolysers need consistent, cheap, and “dispatchable” renewable energy.  Promote Hybrid Renewable Energy Parks (Solar + Wind + Battery Storage) specifically for hydrogen production.   

  • The government’s move to waive inter-state transmission charges for 25 years for green hydrogen projects is a critical step in lowering electricity costs, effectively decoupling production sites from renewable-rich zones.  

• Indigenous Manufacturing of Electrolyzers: India currently imports many critical components like PEM (Proton Exchange Membrane) stacks and catalysts.  

  • Intensify R&D support for indigenous electrolyzer technology through the ₹100 crore Call for Proposals and public-private partnerships.  
  • The recent India-US critical minerals pact and domestic initiatives under the Production-Linked Incentive (PLI) schemes aim to localize the supply chain, reducing import dependence on China and insulating domestic producers from global price volatility.  

• Pipeline Retrofitting and Infrastructure Development: Transporting hydrogen is the “last mile” problem of the green energy transition. Invest in hydrogen-ready pipeline infrastructure.  

  • Rather than building entirely new networks, initiate pilot projects to blend green hydrogen into existing natural gas pipelines. 

• Strengthening Safety and Standardization Frameworks: Fast-track the development of a comprehensive National Hydrogen Safety Protocol covering production, storage, transport, and dispensing.  

  • Develop uniform standards for high-pressure hydrogen refueling stations (HRS) across the 10 pilot routes currently being tested in India.     

• Workforce Reskilling and Education: The NGHM ’s skilling, upskilling, and reskilling component is essential to create an industry-ready workforce. By establishing Centres of Excellence (CoEs), India can bridge the gap in specialized engineering, testing, and safety protocols necessary for handling high-purity hydrogen systems.   
• Carbon Market Integration: The launch of the Indian Carbon Market (ICM) provides a mechanism to monetize emission reductions. By putting a price on carbon, the cost gap between “grey” (fossil-based) and “green” hydrogen will naturally narrow, making green hydrogen the more attractive economic choice for industrial players.  

Conclusion 

India’s Green Hydrogen Mission is a transformative industrial shift rather than a mere energy project. By bridging cost disparities through targeted subsidies, localized infrastructure, and indigenous technology, India can effectively decouple industrial growth from fossil-fuel dependence, securing energy sovereignty and achieving its ambitious Net Zero 2070 climate goals.