India’s green hydrogen ambitions have captured global attention, with the government setting bold production and export targets under the National Green Hydrogen Mission. Touted as a clean energy fuel of the future, green hydrogen holds promise for decarbonizing hard-to-abate sectors like steel, fertilizers, and heavy transport. However, experts caution that the road to a viable green hydrogen economy is riddled with challenges, from high production costs and lack of infrastructure to limited electrolyzer manufacturing and water availability.
Industry experts discussed the subject recently at the ninth session of 5th edition of the NextGen Chemicals and Petrochemicals Summit 2025 themed ‘Preparing for the future’ in Mumbai on June 18-19, 2025.
The session titled ‘Green Hydrogen: Developing a Cost-Effective Ecosystem’ was moderated by Dr. S. S. V. Ramakumar, Executive Vice President – SPG & Chief Technology Officer, AM Green who outlined the key initiatives under the National Green Hydrogen Mission.
While hydrogen has long been discussed as a fuel of the future, skepticism often overshadowed its potential. However, this time the government has shown firm resolve through the National Green Hydrogen Mission. The mission targets annual production of 5 million metric tonnes of green hydrogen by 2030, positioning India as a global hub for green hydrogen exports. It also aims to add 125 GW of electrolyzer manufacturing capacity within the country. Just three years ago, India had no electrolyzer manufacturers but today several players have already established operations. The initiative is expected to mitigate 50 million metric tonnes of CO₂ emissions annually, save Rs 1 lakh crore in foreign exchange, and generate nearly 6 lakh green jobs. Launched by the Prime Minister in 2021, the mission has made tangible progress: 3,000 MW of electrolyzer manufacturing contracts have been awarded to 15 companies, MNRE has allocated 8.5 kilotonnes of green hydrogen under PLI tenders to 18 companies, and 7.4 kilotonnes of green ammonia for fertilizer and other applications. On the deployment side, Indian Oil’s R&D Centre in Faridabad is currently running 15 hydrogen fuel cell buses supported by refueling infrastructure. Additionally, 23 projects have been awarded to various industry and academic entities as part of the mission’s roadmap, with 157 proposals screened and evaluated. Unlike previous efforts, this time we are serious and the momentum over the past few years is clear proof of that commitment.”
Chandrasekhar N., Head (R&D), Bharat Petroleum Corporation Ltd. shared a few latest latest examples of hydrogen initiatives with a few use cases in India and globally.
“Anyone who has travelled through Kochi airport may have noticed the newly established hydrogen station right outside, a sign that the Prime Minister’s green hydrogen vision is taking shape. A 500 kW electrolyzer has already been installed there, with space reserved for two more. The facility will store around 500 kg of hydrogen, and fuel cell buses will soon operate between the airport and the metro, showcasing to the public that hydrogen is not only viable but also a safe alternative fuel. If we look at global examples like South Korea, where over 250 hydrogen refueling stations (HRS) are operational and buses run seamlessly alongside fossil-fuel vehicles, India can certainly replicate that success. BPCL is actively working to help realize this national goal. Under the Green Hydrogen Mission, a government agency in Trivandrum has allocated land for another electrolyzer in Kochi, and we expect hydrogen-powered buses to begin operating along the Kochi-Trivandrum corridor soon. In terms of mobility, we’ve made significant progress, but now it’s time to take the hydrogen economy to India’s rural heartland. As the Prime Minister has rightly envisioned, the mission will only be truly successful when an electrolyzer—powered by solar energy—can be installed in a rural home and used to burn hydrogen for cooking. At BPCL, we are committed to making that vision a reality in the near future.”
P. V. Balaramakrishna, General Manager – Technology, Larsen & Toubro highlighted the key initiatives being undertaken by his company to promote green hydrogen in India.
“At Larsen & Toubro, we have established a dedicated vertical, L&T Energy to drive our traditional fossil fuel-based businesses. In parallel, we’ve also launched L&T Green Manufacturing, aligning with the broader shift toward sustainable energy. Given India’s heavy reliance on fossil fuels, it’s clear that this path is no longer viable for long-term economic and environmental resilience. We believe green hydrogen and green chemicals are poised to become significant growth drivers in India’s transition. Leveraging our deep expertise in conventional petrochemical and refining technologies, we are now applying that knowledge to help realize the government’s ambitious target of producing 5 million metric tonnes (MMT) of green hydrogen annually. It’s encouraging to see an increasing number of companies stepping into this evolving space. As part of L&T’s own initiatives, we installed a 300 kW electrolyzer at one of our manufacturing facilities, where we successfully replaced natural gas with hydrogen in a furnace, giving us crucial hands-on experience in real-time hydrogen substitution. Further, we have established a state-of-the-art electrolyzer manufacturing facility in Hazira, which not only produces green hydrogen derivatives but is also scalable, from 500 MW to 1 GW capacity, as demand increases. This site serves as a futuristic pilot hub, enabling integrated R&D, pilot testing, and electrolyzer production all under one roof. However, one of the biggest challenges is the high cost of green hydrogen compared to grey hydrogen. Our response to that is focused on indigenization. At L&T, we’ve made substantial progress in developing domestic capabilities, both as a technology developer and solution provider, and we are now successfully delivering green hydrogen solutions to clients.”
Vipul Kumar Maheshwari, Executive Director – R&D, Hindustan Petroleum Corporation Ltd. stressed on the need for developing indigenous technologies for hydrogen production and dispensing stations.
“At HPCL, we are making steady strides across all three of our core verticals—business, research, and development, with a strong emphasis on achieving technological self-reliance. Presently, much of the hydrogen-related innovation and infrastructure relies heavily on imported technologies, which we aim to change. Our primary focus is on indigenizing the technology stack, with the vision of not only becoming a hydrogen hub but also a technology provider to the industry. In this direction, we have successfully developed our own electrolyzer technology, and having demonstrated a working prototype, we are now preparing to scale it up to the megawatt level for deployment at operating plants. On the mobility front, we are advancing hydrogen-powered internal combustion (IC) engines, which we believe offer unique advantages. We are setting up a hydrogen dispensing station in Visakhapatnam to support a fleet of 700 hydrogen-powered trucks capable of covering up to 300 kilometers per refuel, minimizing refueling needs. Currently, hydrogen dispensing infrastructure depends on imports from countries like China and Europe. To eliminate this dependency, we are also developing indigenous designs for hydrogen dispensing stations, ensuring we are fully prepared when hydrogen mobility scales up. Notably, our Visakhapatnam refinery was the first in the country to implement a megawatt-scale electrolyzer, reflecting our proactive approach and commitment to India’s green hydrogen mission.”
Yash Gupta, Assistant Vice President- Strategy & Diversification, Gujarat Fluorochemicals Ltd offered a grounded perspective on the evolving hydrogen economy, outlining four critical pillars necessary to build a cost-effective and scalable green hydrogen ecosystem:
“There are four key areas that must be addressed: supply-side development, demand generation, enabling infrastructure, and financing mechanisms. On the supply side, the biggest challenge is producing green hydrogen at a price that is competitive with grey hydrogen. The current cost differential is significant, and multiple interventions are required to bridge this gap. Technological advancements in electrolyzer and non-electrolyzer pathways, coupled with economies of scale, will help bring down costs over time. These are market-driven shifts, but they need to be supported by favorable policy and regulatory measures. For example, the existing 18% GST on electrolyzers and stacks, and 14% GST on renewable energy assets, poses a barrier. Reducing these rates would significantly strengthen the supply-side ecosystem. On the demand side, while refining and fertilizers currently account for nearly 95% of green hydrogen usage, we must also explore scalable, low-hanging opportunities such as 5% green hydrogen blendingacross industries, to stimulate broader market adoption. The third pillar is infrastructure. To optimize logistics and reduce costs, hydrogen production and consumption centres should be co-located wherever possible. Finally, financial support is essential, as green hydrogen projects are capital-intensive. Strategic government interventions in the form of green debt instruments or concessional equity financing can help de-risk investments and attract private capital at scale.”
Samir Saxena, VP – Engineering, Green Hydrogen Business, ReNew outlined the company’s growing commitment to advancing the green hydrogen and green molecule ecosystem:
“At ReNew, our vision goes beyond just generating green electrons, we are equally focused on enabling the shift to green molecules to help decarbonize hard-to-abate sectors. Currently, we have about 15 GW of operational renewable energy capacity, with an additional 5 GW in the development pipeline, spanning both solar and wind projects, which are expected to come online in the next few years. Recognizing the need for deeper decarbonization, we are spearheading a flagship 300 KTA green ammonia project in Paradip, Odisha, alongside a green methanol project in the same region, both geared towards export markets in Europe and South Asia. While these are primarily export-oriented, we are also observing growing domestic demand, particularly with six Indian refineries issuing tenders for green ammonia, for which we are actively bidding. Additionally, we are collaborating with partners in North East Asia on project development. A recent milestone includes securing a US$ 200,000 grant from Germany’s Federal Ministry of Renewable Energy to conduct a feasibility study for a green methanol project in India, a testament to our leadership in this space. Through such initiatives, ReNew is striving to become a key player in building a global green molecule supply chain and contributing meaningfully to global decarbonization goals.”
Amrit Singh Deo, Senior Managing Director, FTI Consulting, shared insights into the evolving green hydrogen landscape in India:
“The transition to green hydrogen is both technically demanding and financially intensive, involving not just industrial innovation but a fundamental infrastructural transformation. These are long-gestation, capital-heavy projects, often running into billions of dollars and requiring large-scale designs. Despite these challenges, India has made encouraging progress, four green hydrogen projects were commissioned in March this year, and notable ventures like JSPL’s plant and AM Green’s large-scale project are expected to reach commissioning by year-end. It’s important to recognize the diverse business models emerging in this space, from merchant and export-driven projects to captive use cases, each tailored to industry-specific needs. Refineries and steel makers are playing a critical role, with early adopters like JSPL and JSW leading the way, even in the face of significant cost deltas that challenge economic feasibility. These pioneering companies and developers deserve recognition for their commitment. Going forward, sector-specific interventions will be crucial. While the government has taken important steps, more policy and financial support is needed, especially in refining. On the export front, creating globally aligned carbon trading frameworks would help ease offtake agreements with partners in Japan, Singapore, and Europe, allowing them to claim carbon credits. The absence of such a system in India remains a major bottleneck for scaling exports effectively.”
Daljit Singh Kohli, India Representative, Port of Antwerp – Bruges shared the port’s global green ambitions.
“As the second-largest port in Europe, our strategic vision is to become a leading gateway for green molecule imports into the European market, with seamless distribution across Belgium, Germany, and the Netherlands. While we operate as a port authority, the bulk of activities within our port cluster are carried out by major industrial players, including global chemical giants like BASF and ExxonMobil. We offer long-term land concessions and house one of Europe’s most integrated industrial clusters, making us an attractive destination for green energy value chains. Our approach is comprehensive, we are not only investing in infrastructure and logistics, but also facilitating supplier partnerships and offtake agreements. We have been actively collaborating with countries like Oman, Chile, Brazil, and several African nations, and naturally, India is a key partner in this effort. We are working closely with Indian companies and port authorities to develop the necessary infrastructure that will support their entry into the European green energy market. Our goal is to enable Indian players to explore and capitalize on emerging opportunities in Europe’s evolving green economy.”
The 5th edition of NextGen Chemicals and Petrochemicals Summit 2025 themed ‘Preparing for the future’ witnessed massive attendance by leading industry experts and stakeholders from pan India. The 12 sessions at the two-day event were attended by a total of 85 speakers and more than 500 delegates.
The Country Partner of the event was Flanders Investment & Trade. The State Partner was Andhra Pradesh Economic Development Board (EDB). The Principal Partner was DCM Shriram Chemicals. The Gold Partners included Revvity Signals, Ingenero, Tubacex, GloGreen, BTG (A Voith company), Gujarat Fluorochemicals, Excel Industries, Epsilon Carbon, Aquapharm, HPCL, BPCL, and WoodField.
The Associate Partners were Zodiac Tank Container Terminals, ReGreen Excel and AnalytikJena. The Supporting Partner was Archroma.
Industry Association Partners of the event included AMAI, CropLife, Gujarat Chemical Association, and Agro Chem Federation of India.
