Green Hydrogen and India’s Clean Energy Transition

Source: PIB 

Why in News? 

India is advancing its National Green Hydrogen Mission (NGHM) through domestic electrolyser manufacturing, green hydrogen production, industrial pilot projects and certification mechanisms to support its 5 million metric tonnes (MMT) annual green hydrogen production target by 2030 and Net Zero emissions goal by 2070. 

What are the Key Facts About Green Hydrogen? 

• About: Green hydrogen is hydrogen produced using renewable energy, primarily through water electrolysis powered by solar or wind electricity, resulting in substantially lower carbon emissions than conventional fossil-fuel-based hydrogen production.  
• Clean Energy Carrier: Hydrogen is an energy carrier that can store and deliver energy for diverse applications. In a fuel cell, it reacts with oxygen to generate electricity, producing water and heat as by-products without direct emissions of polluting compounds or greenhouse gases. 
• Production Determines Environmental Impact: Hydrogen is generally obtained from compounds such as water or natural gas. While conventional fossil-fuel-based production generates significant carbon emissions, renewable-powered electrolysis substantially reduces its carbon footprint.  
• Decarbonisation Potential: Green hydrogen can reduce emissions in hard-to-abate sectors, particularly fertilisers, petroleum refining, steel, heavy-duty transportation and shipping, where direct electrification is difficult or less practical. 
• Energy Security and Economic Benefits: India’s abundant solar and wind resources can support domestic green hydrogen production, reducing dependence on imported fossil fuels and exposure to global energy price volatility.  

What is India’s Green Hydrogen Policy Architecture? 

India’s green hydrogen policy framework is centred on the National Green Hydrogen Mission (NGHM), supported by financial incentives, sector-specific pilot projects, renewable energy infrastructure, certification standards, research and skill development. 

• Whole-of-Government Approach: The Mission coordinates efforts across Central and State Governments to promote green hydrogen adoption. 

  • Ministry of Petroleum and Natural Gas: Promotes adoption in refineries and city gas distribution. 
  • Ministry of Chemicals and Fertilisers: Encourages green ammonia-based fertiliser production. 
  • Ministry of Road Transport and Highways: Facilitates hydrogen-based transport through regulations and standards. 
  • Ministry of Steel: Promotes hydrogen use in low-carbon steelmaking. 
  • Ministry of External Affairs: Facilitates international cooperation and partnerships. 

National Green Hydrogen Mission (NGHM)  

• Approved by the Union Cabinet in January 2023, with an outlay of ₹19,744 crore, and implemented by the Ministry of New and Renewable Energy (MNRE) to make India a global hub for green hydrogen production, utilisation and exports. 
• 2030 Target: At least 5 million metric tonnes (MMT) of annual green hydrogen production capacity, potentially expanding to 10 MMT depending on export demand. 

Strategic Interventions for Green Hydrogen Transition (SIGHT) 

• With an allocation of ₹17,490 crore up to 2029–30, the programme provides incentives for domestic electrolyser manufacturing and green hydrogen production. 
• Incentives awarded to 15 companies for 3,000 MW per annum of electrolyser manufacturing capacity. 
• Incentives awarded for 8.62 lakh tonnes per annum of green hydrogen production capacity, of which approximately 8,000 tonnes per annum had been commissioned by February 2026. 

Sector-Specific Pilot Projects 

The Mission supports demonstration projects in steel, heavy-duty transportation and shipping to test commercial viability and address technological and infrastructure gaps. 

• Steel: ₹455 crore allocated up to 2029–30; five pilot projects sanctioned, including ₹84 crore for testing 100% hydrogen injection. 
• Mobility: 12 projects covering 70 hydrogen vehicles (27 buses and 43 trucks), along with 16 hydrogen refuelling stations across 21 routes. 
• Shipping: V.O. Chidambaranar Port Authority has awarded a ₹38.12 crore green methanol bunkering and refuelling project, including an MNRE grant of ₹35 crore. 

Green Hydrogen Hubs and Hydrogen Valley Innovation Clusters (HVICs) 

• Promote geographically concentrated production, consumption, innovation and shared infrastructure to reduce costs and improve economies of scale. 
• Deendayal Port (Gujarat), V.O. Chidambaranar Port (Tamil Nadu) and Paradip Port (Odisha) have been recognised as green hydrogen hubs. 
• An indigenous 1 MW green hydrogen plant was commissioned at Kandla Port in July 2025. 
• Four HVICs have been awarded in Jodhpur, Odisha, Pune and Kerala. 

Enabling Policy Framework 

• Transmission Charge Waiver: Eligible green hydrogen and green ammonia plants commissioned by 31 December 2030 receive a 25-year waiver of Inter-State Transmission System (ISTS) charges, subject to applicable conditions. 
• Open Access and Energy Banking: The Green Hydrogen and Green Ammonia Policy provides for Open Access within 15 days and banking of surplus renewable electricity for up to 30 days, subject to regulations. 
• Infrastructure Support: The Green Energy Corridor Scheme strengthens renewable electricity transmission, while existing Solar Parks, Manufacturing Zones and Special Economic Zones (SEZs) can support hydrogen infrastructure. 
• Regulatory Incentives: Eligible standalone green hydrogen and ammonia plants are exempt from prior Environmental Clearance under the EIA Notification, 2006. Certain SEZ/EOU renewable energy projects also receive specified equipment-list exemptions and duty benefits. 

Regulations and Standards 

• Green Hydrogen Standard (2023): Prescribes a maximum well-to-gate emissions intensity of 2 kg CO₂ equivalent per kg of hydrogen, averaged over 12 months. Eligible biomass-based production pathways are also covered, subject to the prescribed threshold. 
• Green Hydrogen Certification Scheme (2025): Provides a framework for monitoring, verification and certification, with the Bureau of Energy Efficiency (BEE) responsible for accrediting verification agencies. A dedicated digital certification portal became operational in June 2026. 
• Green Ammonia and Methanol Standards: Specify emissions thresholds and eligibility conditions to facilitate production, certification and trade. 

World Hydrogen and Fuel Cell Day 2026 

• On the occasion of the World Hydrogen and Fuel Cell Day (8th October 2026), the Ministry of New and Renewable Energy (MNRE) organised a stakeholder consultation in New Delhi to strengthen hydrogen safety standards, testing protocols and institutional coordination for its production, storage, transportation and utilisation. 
• The report “India’s Hydrogen Standards: Gap Assessment and Preliminary Action Framework”, prepared with Boston Consulting Group (BCG), was released to identify regulatory gaps and recommend measures for the safe deployment of hydrogen technologies. 

Research and Development 

• Strategic Hydrogen Innovation Partnership (SHIP): The Mission supports R&D to make green hydrogen more affordable, efficient, safe and reliable through SHIP, a public-private framework involving industry and government. 
• R&D Funding: Guidelines were notified in March 2024 with an outlay of ₹400 crore. As of June 2026, an initial ₹113-crore R&D roadmap supports projects on hydrogen production, storage and safety technologies. 

Skilling and Start-ups 

• Employment Potential: The Mission aims to generate over 6 lakh jobs by 2030 across the green hydrogen value chain. 
• Skill Development: 8,149 candidates have been trained and 7,248 certified across 14 States and Union Territories in areas including electrolysers, electrolysis, storage, transport, safety, steel, mobility and refining. 
• Start-up Support: ₹100 crore has been allocated for green hydrogen technology start-ups. The first nine start-ups have been approved for funding of ₹22 crore. 

International Cooperation 

• Bilateral Partnerships: MNRE, directly or through the National Institute of Solar Energy, has signed MoUs, Letters of Intent or Joint Declarations of Intent with Australia, Finland, France, Germany, Saudi Arabia, the UAE and Uzbekistan. 
• India–Netherlands Cooperation: An MoU on renewable energy has been signed with the Netherlands. 
• India–US Cooperation: An India–US Hydrogen Task Force has been established under the Strategic Clean Energy Partnership. 
• RETAP: Green hydrogen is a focus area of the India–US New and Emerging Renewable Energy Technology Action Platform (RETAP). 

State-Level Initiatives 

• States with Dedicated Policies: Gujarat, Andhra Pradesh, Maharashtra, Uttar Pradesh, Rajasthan and West Bengal have notified dedicated green hydrogen policies. 
• States Drafting Policies: Haryana, Punjab, Bihar and Keralam are finalising their dedicated green hydrogen policies. 
• States with Integrated Frameworks: Himachal Pradesh, Madhya Pradesh, Odisha, Telangana and Chhattisgarh have integrated hydrogen into their existing industrial and renewable energy policy frameworks. 

What are the Major Applications of Green Hydrogen? 

• Fertiliser Industry: Green hydrogen can replace fossil-fuel-derived hydrogen in ammonia production, enabling the manufacture of green ammonia for nitrogen-based fertilisers such as urea, with substantially lower emissions. 
• Petroleum Refineries: Used in desulphurisation and hydrocracking processes to remove sulphur and convert heavy petroleum fractions into lighter fuels. Replacing conventional hydrogen with green hydrogen can reduce emissions from refinery operations. 
• Iron and Steel Industry: Green hydrogen can replace coal-based reducing agents in Direct Reduced Iron (DRI) production, converting iron ore into iron while producing water vapour instead of CO₂ during the reduction reaction. 
• City Gas Distribution: Green hydrogen can be blended with natural gas in limited proportions for domestic, commercial and industrial use, subject to pipeline compatibility, safety standards and technical requirements. 
• Road and Rail Transport: Hydrogen Fuel Cell Electric Vehicles (FCEVs) generate electricity onboard by combining hydrogen with oxygen, producing water and heat as direct by-products. They offer potential applications in heavy-duty buses, trucks and trains requiring long-range operation and relatively quick refuelling. 

  • India’s first indigenous hydrogen-powered train was inaugurated on 17th July 2026 on the Jind–Sonipat section in Haryana.  

• Shipping: Green hydrogen can be converted into green ammonia and green methanol as alternative marine fuels, supporting the decarbonisation of shipping, subject to vessel compatibility, safety requirements and port infrastructure. 
• Energy Storage: Surplus renewable electricity can be converted into hydrogen for long-duration storage and later use, supporting renewable energy integration and grid flexibility. 

Conclusion 

The National Green Hydrogen Mission is laying the foundation for a low-carbon, self-reliant hydrogen economy through domestic manufacturing, industrial pilots, green hydrogen hubs and certification mechanisms. Addressing production costs, infrastructure constraints and demand uncertainty will be essential for achieving India’s 2030 green hydrogen target and Net Zero 2070 commitment.