India’s green hydrogen sector is moving towards global cost competitiveness, with the lowest discovered bids at Rs 279 per kg for green hydrogen and Rs 49.75 per kg for green ammonia, reported ET Energyworld, citing Union Minister for New and Renewable Energy Pralhad Joshi.
Speaking in a video message at S&P Global Energy’s Horizons Clean Energy Expansion India 2026 conference, Joshi said the recently discovered prices indicate that Indian green hydrogen is becoming increasingly competitive with global costs.
Under the National Green Hydrogen Mission, the government has awarded incentives for around 8.62 lakh tonnes per annum of green hydrogen production capacity and 3,000 MW per annum of domestic electrolyser manufacturing capacity. The mission has an outlay of Rs 19,744 crore and aims to establish India as a global hub for producing, using and exporting green hydrogen and its derivatives.
Joshi said the sector was being supported by India’s expanding renewable energy base as well as efforts to develop domestic manufacturing capabilities. India’s non-fossil fuel-based power capacity has crossed 304 GW, while solar capacity has exceeded 160 GW. The country also has manufacturing capacity of around 414 GW, he said.
The government is simultaneously working to create domestic demand for green hydrogen, particularly in industries that currently rely on fossil fuels. Joshi said 30 kTPA of green hydrogen production capacity had been awarded for use by refineries.
According to the minister, creating demand within refineries would help establish a domestic market for green hydrogen, lower dependence on imported fossil fuels and contribute to India’s energy security.
The government is also supporting pilot projects in sectors including steel and hydrogen-based mobility, along with refuelling infrastructure and testing facilities. Joshi said the first commercial projects were also beginning to take shape.
As the market develops, he said, transparency and confidence among stakeholders would be critical. To address this, India has introduced the Green Hydrogen Certification Scheme and the India Green Hydrogen Certification Order to provide a framework for transparent certification of domestically produced green hydrogen.
Joshi said platforms that bring together policymakers, industry, investors and international partners could help create the information and confidence required for the emerging market to develop.
He added that the government would continue working with industry to address bottlenecks and maintain a stable and predictable policy framework. He said the infrastructure and ecosystem being developed in India could also support the country’s international partners.
