By Pankhudi Jha
Green hydrogen is key to decarbonise hard-to-abate sectors such as refining, fertilisers, steelmaking, shipping and heavy-duty transport while supporting green ammonia production and enhancing energy security. India’s dependence on energy imports and the geopolitical tensions in West Asia further highlight the need to develop a domestic green hydrogen industry.
Renewable Watch presents an overview of India’s green hydrogen sector during the past year….
Central and state-level initiatives
India’s National Green Hydrogen Mission (NGHM), launched in January 2023 with a Rs 197.44 billion outlay, seeks to build a domestic ecosystem and achieve 5 million metric tonnes per annum (mmtpa) of green hydrogen production by 2030 through 125 GW of renewable energy capacity. The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme under the NGHM drives this by supporting 3,000 MW of annual electrolyser manufacturing across 15 companies and 862,000 tonnes of production capacity across 18 firms. To secure buyers, the Solar Energy Corporation of India (SECI) has aggregated demand for 724,000 tonnes of green ammonia for fertiliser units. Other recent central efforts include the Ministry of New and Renewable Energy-backed decentralised pilot projects (biomass, wastewater), the electrolyser-as-a-service model to minimise upfront costs and notification of standards for green hydrogen and its derivatives.
State governments are actively complementing central policies by offering investment incentives, land allocation and industrial infrastructure to link production facilities with ports and industrial demand. Andhra Pradesh is positioning itself as a major production and export hub through its Green Hydrogen and Green Ammonia Policy, which envisions developing up to 0.5 mmtpa of green hydrogen or 2 mmtpa of green ammonia over five years. Rajasthan targets 2,000 kilotonnes per annum by 2030 by utilising its abundant solar and wind resources, while Uttar Pradesh leverages capital subsidies, power concessions and research centres of excellence to attract investments from the fertiliser, chemical and refining sectors.
Bihar has established its own green hydrogen policy targeting 0.1 mmtpa of production capacity by 2031 alongside 1 GW of electrolyser capacity and 2.5 GW of renewable energy, while Gujarat, Maharashtra, Tamil Nadu and Odisha are focusing on ports, chemical clusters and refinery integrations. To further support this regional growth, SECI floated a call for proposals for executing agencies to prepare detailed project reports for establishing green hydrogen hubs under Component-B1 of the NGHM, with a submission deadline of October 30, 2026.
Key projects and developments
India’s green hydrogen project pipeline is expanding with several projects under way across the production, manufacturing, industrial applications, port and transport sectors.
NTPC Green Energy Limited’s (NGEL) proposed green hydrogen hub at Pudimadaka, Andhra Pradesh, is progressing through tenders for enabling infrastructure, water treatment, substations and utilities. In March 2026, proposals for green ammonia and methanol projects under a plug-and-play model were also invited. In the same month, the V.O. Chidambaranar Port Authority invited bids for a 2 MW electrolyser-based hydrogen production and refuelling station with a capacity of 600 kg per day, while the Deendayal Port Authority invited bids for a metal-hydride hydrogen storage system and a 3 kW fuel cell power system at Kandla, Gujarat. Paradip Port Authority invited bids for project management consultancy for a 1 MW electrolyser-based hydrogen plant and eight hydrogen fuel cell buses.
Oriana Power signed an MoU with the Maharashtra government to invest approximately Rs 45 billion in an integrated green hydrogen project, including green ammonia and methanol production. The Uttar Pradesh New and Renewable Energy Development Agency signed an MoU with Japan’s Yamanashi Prefecture to promote cooperation in green hydrogen, renewable energy, technology development and investment.
In the financing and export segment, the Asian Development Bank and the Government of Japan signed financing agreements with AM Green Ammonia for a proposed 1.1 mtpa green ammonia facility at Kakinada, including a $100 million loan through the Leading Asia’s Private Infrastructure Fund 2 in September 2026. In the same month, AM Green also secured a 10-year agreement with Germany’s Hintco following its selection as the sole winner of the Asian lot in the H2Global auction, with a minimum purchase value of €585 million. Separately, ACME Cleantech Ventures received an investment commitment of up to $600 million from Brookfield’s Global Transition Fund to support green molecule projects in India and the Middle East.
In industrial applications, MECON has pursued a pilot project to use hydrogen in direct reduced iron production. In September 2026, Maruti Suzuki India commissioned a 300 kW green hydrogen electrolyser pilot at its Manesar facility in Haryana, blending the hydrogen produced with natural gas for manufacturing processes.
Transport projects are also advancing. In April 2026, NGEL invited bids for 11 hydrogen fuel cell buses for Kandla, while NTPC Limited invited bids for three buses for Bhubaneswar. In July 2026, the government announced 12 pilot projects involving 70 hydrogen-powered vehicles – 27 buses and 43 trucks across 21 routes – supported by 16 refuelling stations and approximately Rs 4.11 billion in financial assistance.
Tenders, auctions and emerging demand
Competitive procurement is becoming a key mechanism for moving green hydrogen and its derivatives towards commercial supply.
Renewable Watch Research reports that Hindustan Petroleum Corporation Limited awarded a 5,000 tonne per annum (tpa) green hydrogen contract to Ocior Energy at Rs 328 per kg in July 2025. In February 2026, Numaligarh Refinery Limited awarded a contract to NeuEN Green Energy for 10,000 tpa at Rs 279 per kg.
Tender activity is expanding across production, mobility and industrial applications. In September 2025, NGEL invited expressions of interest (EoIs) for green hydrogen and chemical projects at the proposed Pudimadaka hub near Visakhapatnam, Andhra Pradesh, with a potential capacity of 2.5 mmtpa. In November 2025, the Agency for New and Renewable Energy Research and Technology invited consortium partners for a hydrogen mobility pilot in Kerala, covering buses, trucks and two refuelling stations, each with a capacity of at least 260 kg per day.
In January 2026, the Punjab Energy Development Agency invited EoIs from prospective offtakers for biomass-based green hydrogen. Separately, the Biotechnology Industry Research Assistance Council issued calls for decentralised hydrogen pilot projects using biomass, wastewater, floating solar and other innovative technologies. The programme provided financial assistance of up to Rs 250 million per project under the relevant component, within a total allocation of Rs 1 billion.
Recent tenders are extending towards hub infrastructure and larger industrial demand. In September 2026, SECI invited bids for supplying 54,000 tpa of green ammonia to Madhya Bharat Agro Products Limited-III at Dhule, Maharashtra, under the SIGHT scheme. In October 2026, Himachal Pradesh State Electricity Board Limited separately tendered system operation and service support for a 1 MW green hydrogen facility at Nasrali, with an estimated investment of Rs 30.47 million and a one-year completion period.
Green ammonia auctions have witnessed competitive tariffs. Under SIGHT Mode-1, Tranche 2A, SECI bid 724,000 tpa of capacity across 13 fertiliser units. The tariffs ranged from Rs 49.75 to Rs 64.74 per kg, with a weighted average of Rs 53.27 per kg. ACME Cleantech Solutions secured 100,000 tpa at the lowest tariff of Rs 49.75 per kg, while Jakson Green secured 85,000 tpa at Rs 50.75 per kg. NTPC Renewable Energy secured 70,000 tpa at Rs 51.80 per kg, Oriana Power won 60,000 tpa at Rs 52.25 per kg and Onix Renewable secured 50,000 tpa at Rs 52.50 per kg.
Overall, the reported tariff range is Rs 279-Rs 328 per kg for refinery-linked green hydrogen and Rs 49.75-Rs 64.74 per kg for green ammonia.
Cost competitiveness and export potential
While exports offer potential growth, domestic industrial demand provides a more immediate opportunity for India’s green hydrogen sector. KPMG’s October 2026 market review estimates a total potential demand of roughly 10 mmtpa, comprising 2.5-3 million metric tonnes (mmt) for refining, 4-5 mmt for fertilisers, 0.4-0.5 mmt for methanol and an estimated 1.8 mmt of theoretical potential in steel.
Cost remains a critical constraint. While the long-term aspiration is to reach $1 per kg by 2030, KPMG’s analysis indicates current production costs of approximately $2.9-$3.5 per kg for renewable fuel-compliant pathways. These expenses are driven primarily by renewable electricity, electrolyser capex, water, storage, transport, financing costs (ranging between 9 and 11 per cent in India) and firm power costs estimated at around Rs 5.25 per kWh. Consequently, reducing capital costs, improving electrolyser efficiency and lowering reliable renewable power expenses are essential.
Despite opportunities in global markets for green hydrogen, ammonia and methanol, export prospects face uncertainty from competition, domestic supply in importing countries and geopolitical shipping risks. Long-term offtake agreements, strict certification standards and reliable logistics will be crucial to the development of the sector alongside competitive production costs.
The way forward
India’s green hydrogen sector is at an early stage, with the NGHM targeting 5 mmtpa of production by 2030. With annual energy imports estimated at $140 billion-$160 billion, green hydrogen offers opportunities for import substitution, industrial decarbonisation and exports. The 3,000 MW per annum of electrolyser manufacturing capacity awarded under the SIGHT programme provides a foundation for domestic manufacturing. In the near term, refineries and fertiliser plants are expected to drive demand, followed by steel, methanol, shipping and heavy-duty transport. Pilot projects are exploring biomass-based and wastewater-based hydrogen production, while competitiveness will depend on efficient electrolysers, research and development, affordable renewable power and stronger domestic supply chains. Scaling up will require shared infrastructure, lower financing costs, long-term offtake agreements and converting announced projects into operational, commercially viable facilities.
