What Is Green Hydrogen and Why It Matters
Green hydrogen is hydrogen produced through electrolysis powered exclusively by renewable energy sources like solar or wind—offering a zero‑emission fuel alternative for hard‑to‑decarbonize sectors such as steel, chemicals, marine, and aviation. It also addresses seasonal storage and transport limitations of electricity grids while being an exportable clean energy vector.
India’s Strategic Push: The National Green Hydrogen Mission
In January 2023, the Union Cabinet approved the National Green Hydrogen Mission with a ₹19,744 crore (~$2.3 billion) outlay, targeting 5 million metric tonnes (MMT) of annual hydrogen production by 2030, supported by 125 GW of dedicated renewable capacity.
Its core goal: to establish India as the global hub for production, usage, and export of green hydrogen and derivatives like green ammonia and methanol, while reducing fossil fuel imports and enabling domestic technology and market leadership.
The mission aims to attract ₹8 lakh crore in investments (~$100 billion) and generate more than 600,000 jobs by 2030, averting nearly 50 MMT of CO₂ emissions annually.
Strategic Interventions Under SIGHT
The SIGHT programme (Strategic Interventions for Green Hydrogen Transition) forms the backbone of the mission:
Incentives for domestic electrolyser manufacturing and for green hydrogen producers.
Competitive procurement through tender routes.
Contracts involving 1,500 MW of electrolyser capacity and 412,000 tpa hydrogen production awarded in early 2024 and 2025.
Milestones and Developments
India’s first “Make in India” 1 MW electrolyser plant was commissioned at Deendayal Port, Kandla, with plans to expand to 10 MW producing ~140 tonnes per year—serving buses and port operations.
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Major investments:
BPCL–Sembcorp JV for green hydrogen/ammonia infrastructure across India.
Acme Cleantech won a tender under SIGHT to supply 75,000 MT green ammonia at ₹55.75/kg, setting a record low price.
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Emerging Green Hydrogen Hubs:
Deendayal Port, Gujarat: ~3400 acres slated for up to 7 MMTPA of green ammonia.
Tuticorin Port, Tamil Nadu: hosting ~200 kTPA ammonia plant by Sembcorp, among others.
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New R&D initiatives:
India’s Edge: Why It Could Become the Hub
Renewable Advantage: Abundant solar, wind, hydro resources and available land give India a cost edge in hydrogen production (~$1–1.50/kg targets by 2030).
Economies of Scale: Large-scale domestic demand across steel, fertilizer, refineries, shipping, and mobility can absorb early volumes.
Policy Alignment: Regulatory support includes green hydrogen consumption mandates, open access waivers, and GST cuts to 5%.
Export Potential: Global demand is projected over 100 MMT by 2030; India aims to supply ~10 MMT to international markets, especially via green ammonia trade.
Innovation Ecosystem: Partnerships like Netherlands–India innovation missions and strategic PPPs in SHIP R&D support technology localization and global competitiveness.
Challenges & Risks
High capex & technology cost: Electrolyser and fuel cell tech requires further cost reduction.
Transport & storage hurdles: Hydrogen’s characteristics demand strong infrastructure (pipelines, tankers).
Standards and certification gaps: Need globally accepted definitions (additionality, deliverability, temporal matching) to ensure trade credibility.
Global Comparisons
While EU, US, Japan, South Korea and Middle‑East countries are investing in hydrogen, India’s low-cost renewables and large domestic base provide a compelling alternative. If policy execution and international trade interoperability succeed, India can lead through scale, affordability and exportability.
Outlook: Can India Lead?
Yes — if strategic momentum continues:
Meeting production targets via scaling projects and rolling out more hydrogen hubs.
Ensuring cost declines through competitive procurement and local manufacturing.
Developing a cohesive global certification framework.
Strengthening infrastructure logistics for domestic use and exports.
Takeaway
India has laid a strong foundation—from policy, incentives, industry alignment, infrastructure, to R&D partnerships—to emerge as a global hub for green hydrogen and clean fuel exports. Success depends on conversion of plans into large-scale execution, cost competitiveness, and global alignment.
India isn’t just entering the green hydrogen arena—it’s positioning itself as the pace‑setter.
