The long-term success of hydrogen in India cannot depend only on production capacity. It will ultimately depend on how effectively the country develops a commercially viable hydrogen ecosystem involving storage, transportation, industrial integration and export infrastructure.
May 30, 2026. By News Bureau
India already possesses several advantages that support this transition, including abundant renewable energy resources, industrial capabilities, engineering expertise and increasing investments in clean technologies. According to the Ministry of New and Renewable Energy, the National Green Hydrogen Mission aims to position India as a leading global producer and exporter of green hydrogen while strengthening industrial decarbonisation, clean manufacturing and energy independence.
India’s clean energy ecosystem is also expanding at an unprecedented pace. In 2025, India’s total installed power generation capacity reached 476 GW, with 235.7 GW, nearly 49 percent, contributed by non-fossil fuel sources. Renewable energy alone contributes 226.9 GW, while solar energy capacity has crossed 110 GW.
India also achieved the milestone of 50 percent installed electricity capacity from non-fossil fuel sources nearly five years ahead of its Paris Agreement target. In the first half of 2025 alone, India’s renewable power generation reportedly grew by more than 24 percent, reflecting the rapid pace of clean energy expansion.
Globally, leading economies such as the EU, Japan and Australia are rapidly advancing hydrogen infrastructure through dedicated hydrogen corridors, export terminals and long-term supply agreements. India’s ability to remain competitive in this evolving landscape will depend not only on production scale but also on how quickly it develops integrated infrastructure ecosystems comparable to global benchmarks.
However, despite growing attention on electrolysers and renewable energy systems, one critical challenge continues to receive comparatively less attention, which is infrastructure.
The long-term success of hydrogen in India cannot depend only on production capacity. It will ultimately depend on how effectively the country develops a commercially viable hydrogen ecosystem involving storage, transportation, industrial integration and export infrastructure.
Infrastructure Challenges in India’s Hydrogen Ecosystem
Unlike conventional fuels, hydrogen presents unique engineering and operational challenges. Its production, storage, transportation, handling and industrial utilisation require entirely different systems, materials and safety standards. This transition, therefore, cannot be approached as a simple replacement of existing fuels. It demands a complete rethinking of industrial infrastructure.
Green hydrogen production itself remains highly dependent on renewable energy availability. Since renewable energy generation is variable in nature, maintaining uninterrupted hydrogen production becomes a major operational challenge. Cost competitiveness will play a decisive role in accelerating adoption. Industry estimates suggest that green hydrogen costs in India currently range between USD 4 to 6 per kilogram, significantly higher than grey hydrogen. However, with declining renewable energy tariffs, improving electrolyser efficiencies and scale-driven manufacturing, costs are expected to fall below USD 2 per kilogram by 2030, making it commercially viable across multiple sectors. The industry will require integrated energy management systems, reliable grid connectivity, hybrid renewable arrangements and large-scale energy storage solutions to ensure continuity and commercial feasibility.
Another equally important challenge is water availability. According to multiple hydrogen industry assessments, producing one kilogram of green hydrogen requires nearly 9 to 11 litres of purified water. In a country where several regions already face serious water stress, future hydrogen projects must integrate desalination systems, wastewater recycling and industrial water reuse infrastructure from the very beginning.
Storage and transportation infrastructure represent another major gap within India’s emerging hydrogen ecosystem. Hydrogen is highly flammable and extremely light, which makes its storage and movement technically demanding. It requires specialised compression systems, advanced metallurgy, leak-proof storage tanks, high-performance pipelines and sophisticated safety monitoring systems.
Industry studies further indicate that midstream infrastructure, including compression, storage and transportation, can account for nearly 30 to 40 percent of the final delivered hydrogen cost. This significantly impacts commercial viability and reinforces the importance of shared industrial infrastructure models.
Without coordinated investments in hydrogen corridors, storage terminals, industrial pipelines and export facilities, large-scale adoption may remain economically difficult.
Is Green Hydrogen the Only Way Forward?
While green hydrogen remains the most sustainable long-term pathway towards net zero emissions, India’s hydrogen transition will realistically involve multiple hydrogen variants during different stages of industrial adoption.
Green hydrogen is expected to become the backbone of India’s future energy system because it aligns directly with renewable integration, energy independence and long-term sustainability goals. However, industry leaders must also recognise the transitional relevance of blue and turquoise hydrogen in the medium term.
Blue hydrogen, produced through Steam Methane Reforming combined with carbon capture technologies, can serve as a practical bridge while renewable energy ecosystems and electrolyser capacities continue scaling. Existing gas infrastructure can support faster industrial adoption until green hydrogen approaches wider cost competitiveness around 2030.
At present, India’s refining and fertiliser sectors alone consume nearly 5 million metric tonnes of hydrogen annually. This existing industrial demand creates a major opportunity for scaling dedicated hydrogen production systems, transportation corridors and storage infrastructure.
Turquoise hydrogen may also emerge as a useful alternative in selected industrial applications where methane decomposition technologies can reduce carbon intensity while maintaining operational flexibility.
However, according to international energy agencies and global clean energy studies, green hydrogen is expected to dominate in the long term as renewable energy costs continue declining and electrolyser technologies improve further.
Industrial Readiness and the Role of Engineering
Without industrial readiness, the hydrogen economy cannot scale effectively. Refining, fertilisers, chemicals, steel and shipping sectors will require substantial modifications in process technologies, operational systems, safety frameworks and workforce capabilities before hydrogen utilisation can expand meaningfully.
There is still hesitation among industrial consumers due to concerns regarding supply reliability, infrastructure readiness and commercial feasibility. This creates a cycle where producers hesitate to scale without guaranteed demand, while industrial buyers remain cautious without reliable supply systems.
Globally, many countries are addressing this challenge through hydrogen hubs and industrial clusters. India can significantly benefit from adopting a similar approach. In the Indian context, coastal states such as Gujarat, Tamil Nadu and Odisha offer strategic advantages for developing hydrogen hubs due to their proximity to ports, renewable energy potential and existing industrial ecosystems. Developing such regional clusters can reduce logistics costs while supporting both domestic utilisation and export opportunities. Establishing industrial clusters is vital for commercial viability.
Industry studies indicate that green ammonia can carry nearly 50 percent more hydrogen by volume compared to liquid hydrogen while also being easier to store and transport using existing shipping systems. This gives India a significant opportunity to strengthen its position as a future exporter of clean energy derivatives.
Engineering will remain central throughout this transformation. Hydrogen development is not merely an energy transition issue but a large-scale industrial engineering opportunity. Every stage of the hydrogen value chain requires advanced engineering expertise, automation systems, material handling capabilities, process safety and operational reliability.
Digitalisation and automation will further enhance the efficiency and safety of hydrogen infrastructure. Advanced monitoring systems, predictive maintenance technologies, and AI-driven energy management platforms can optimise production cycles, reduce operational risks and improve overall system reliability.
Experienced EPC companies, therefore, have a critical role to play in accelerating India’s hydrogen ambitions. The implementation of hydrogen plants, purification facilities, storage systems, transportation infrastructure and downstream industrial integration demands execution capabilities built through years of industrial project experience.
Fortunately, India already possesses strong engineering expertise developed across chemicals, fertilisers, refineries and energy infrastructure sectors. With the right investments and industry collaboration, India can strengthen indigenous hydrogen capabilities while simultaneously boosting domestic manufacturing and employment generation.
In this evolving landscape, companies like Nuberg Green Energy are playing an increasingly important role in shaping India’s emerging hydrogen and clean energy ecosystem through engineering-led execution and innovation. As part of their broader commitment to environmental stewardship and low-carbon development, such organisations are actively engaged in several projects across the green energy space, spanning hydrogen, biofuels and next-generation clean technologies. This includes initiatives such as India’s first hydrogen fuel station, along with multiple developments supporting hydrogen mobility and refuelling infrastructure.
In parallel, work on advanced biofuel solutions like 2G bio-ethanol plants is gaining momentum, reflecting a wider industry shift towards circular economy-driven fuel alternatives. Leveraging deep EPC expertise and industrial experience, these companies are steadily expanding project portfolios across hydrogen, biofuels and integrated green energy infrastructure, enabling the transition from concept to commercial-scale deployment.
Financing, Skill Development and Policy Alignment
Financing and skill development will become equally important in the years ahead. Large-scale hydrogen infrastructure requires long-term capital commitment, investor confidence and commercially sustainable business models.
Green hydrogen projects are increasingly attracting global ESG-focused investments. Institutional investors and climate funds are actively seeking large-scale infrastructure opportunities that align with decarbonisation goals. India’s ability to create bankable hydrogen projects with clear revenue models will be critical in unlocking this capital.
At the same time, India will require a specialised workforce trained in hydrogen safety, automation systems, industrial operations and risk management. Global labour and clean energy studies suggest that hydrogen technologies will create substantial demand for specialised technical skills over the coming decade.
Policy alignment will also remain essential. Faster approvals, standardised safety regulations, infrastructure incentives and stronger public-private collaboration can accelerate project execution and large-scale investments across the hydrogen value chain. Key policy interventions such as viability gap funding, production-linked incentives, open access to renewable energy, and clear hydrogen purchase obligations can significantly accelerate market development. Additionally, the creation of hydrogen-specific regulatory frameworks and certification systems will be essential for enabling global trade and export competitiveness.
There is still hesitation among industrial consumers due to concerns regarding supply reliability, infrastructure readiness and commercial feasibility. This creates a cycle where producers hesitate to scale without guaranteed demand, while industrial buyers remain cautious without reliable supply systems.
Globally, many countries are addressing this challenge through hydrogen hubs and industrial clusters. India can significantly benefit from adopting a similar approach. In the Indian context, coastal states such as Gujarat, Tamil Nadu and Odisha offer strategic advantages for developing hydrogen hubs due to their proximity to ports, renewable energy potential and existing industrial ecosystems. Developing such regional clusters can reduce logistics costs while supporting both domestic utilisation and export opportunities. Establishing industrial clusters is vital for commercial viability.
Industry studies indicate that green ammonia can carry nearly 50 percent more hydrogen by volume compared to liquid hydrogen while also being easier to store and transport using existing shipping systems. This gives India a significant opportunity to strengthen its position as a future exporter of clean energy derivatives.
Engineering will remain central throughout this transformation. Hydrogen development is not merely an energy transition issue but a large-scale industrial engineering opportunity. Every stage of the hydrogen value chain requires advanced engineering expertise, automation systems, material handling capabilities, process safety and operational reliability.
Digitalisation and automation will further enhance the efficiency and safety of hydrogen infrastructure. Advanced monitoring systems, predictive maintenance technologies, and AI-driven energy management platforms can optimise production cycles, reduce operational risks and improve overall system reliability.
Experienced EPC companies, therefore, have a critical role to play in accelerating India’s hydrogen ambitions. The implementation of hydrogen plants, purification facilities, storage systems, transportation infrastructure and downstream industrial integration demands execution capabilities built through years of industrial project experience.
Fortunately, India already possesses strong engineering expertise developed across chemicals, fertilisers, refineries and energy infrastructure sectors. With the right investments and industry collaboration, India can strengthen indigenous hydrogen capabilities while simultaneously boosting domestic manufacturing and employment generation.
In parallel, work on advanced biofuel solutions like 2G bio-ethanol plants is gaining momentum, reflecting a wider industry shift towards circular economy-driven fuel alternatives. Leveraging deep EPC expertise and industrial experience, these companies are steadily expanding project portfolios across hydrogen, biofuels and integrated green energy infrastructure, enabling the transition from concept to commercial-scale deployment.
Financing, Skill Development and Policy Alignment
Green hydrogen projects are increasingly attracting global ESG-focused investments. Institutional investors and climate funds are actively seeking large-scale infrastructure opportunities that align with decarbonisation goals. India’s ability to create bankable hydrogen projects with clear revenue models will be critical in unlocking this capital.
At the same time, India will require a specialised workforce trained in hydrogen safety, automation systems, industrial operations and risk management. Global labour and clean energy studies suggest that hydrogen technologies will create substantial demand for specialised technical skills over the coming decade.
Policy alignment will also remain essential. Faster approvals, standardised safety regulations, infrastructure incentives and stronger public-private collaboration can accelerate project execution and large-scale investments across the hydrogen value chain. Key policy interventions such as viability gap funding, production-linked incentives, open access to renewable energy, and clear hydrogen purchase obligations can significantly accelerate market development. Additionally, the creation of hydrogen-specific regulatory frameworks and certification systems will be essential for enabling global trade and export competitiveness.
The Road Ahead for India’s Green Hydrogen Vision
Green hydrogen represents one of India’s most transformative industrial opportunities. It has the potential to reshape energy systems, strengthen industrial competitiveness and position the country as a global clean energy leader.
However, the transition will not be defined by ambition alone. It will be defined by execution. Building robust infrastructure, enabling industrial readiness and aligning policy with market realities will determine the pace of progress.
In India’s journey towards net zero, green hydrogen may be the opportunity, but infrastructure will be the decisive enabler that transforms vision into reality.
– AK Tyagi, Founder, Chairman & Managing Director, Nuberg Green Energy
