New Delhi: India is accelerating its National Green Hydrogen Mission, moving from policy planning to large-scale execution, with green hydrogen costs already dropping below $4/kg. The government aims to reach a 5 million metric tonnes (MMT) annual production target by 2030, supporting the country’s Net-Zero 2070 and energy independence goals.
₹4,440 Crore Incentives to Build Electrolyser Manufacturing Capacity
Under the SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme, the government is localizing the hydrogen supply chain:
- Electrolyser Manufacturing: Fifteen companies, including Reliance, Adani, L&T, and Ohmium, have been awarded contracts to achieve a 3,000 MW annual manufacturing capacity, supported by ₹4,440 crore in incentives.
- Hydrogen Production: Eighteen companies secured agreements for a cumulative 862,000 tonnes per year production capacity.
- Refinery Integration: IOCL and BPCL have received strategic letters to incorporate green hydrogen into their refining processes, reducing industrial carbon footprints.
Read also: NTPC Green Energy Signs MoU with Uttar Pradesh to Boost Renewable Energy and Green Hydrogen Projects
Targeting Green Hydrogen Costs of $1.5–$2/kg by 2030
At India Energy Week 2026, Union Minister Hardeep Singh Puri noted that competitive bidding has already reduced green hydrogen prices to $3–$4/kg. The government aims for $1.50–$2.00/kg by 2030 through:
- Transmission Benefits: Exemption from Inter-State Transmission System (ISTS) charges for plants commissioned before December 2030.
- Green Energy Corridor: New transmission lines and substations are being funded to deliver low-cost renewable power to hydrogen hubs without bottlenecks.
Dedicated Green Hydrogen Hubs Along India’s Coastline
The Ministry has formally recognized three Dedicated Green Hydrogen Hubs to centralize production, storage, and export:
- Deendayal Port, Kandla, Gujarat
- V.O. Chidambaranar Port, Tuticorin, Tamil Nadu
- Paradip Port, Odisha
These hubs leverage India’s strategic location along global trade routes to support both domestic supply and export potential.
Mission 2030 Quick Stats
Under Mission 2030, India has set ambitious targets for the green hydrogen sector:
- Annual Production: 5 MMT (Million Metric Tonnes)
- Renewable Energy Addition: ~125 GW
- Total Expected Investment: Over ₹8 Lakh Crore
- Fossil Fuel Import Savings: Over ₹1 Lakh Crore
- CO2 Emission Reduction: 50 MMT per year
These targets aim to strengthen India’s energy independence, reduce carbon emissions, and establish the country as a global leader in clean hydrogen production.
Global Export Potential and Strategic Outlook
India is positioning itself as a global green hydrogen leader:
- 100% FDI is permitted under the automatic route.
- Partnerships like the India-Netherlands Hydrogen Fellowship aim to foster technological collaboration.
- Industry experts view the next two years as a launchpad for India to become the world’s cheapest producer of clean fuel, targeting 10% of the global green hydrogen market.
The government’s aggressive push on manufacturing, infrastructure, and strategic hubs signals India’s intent to dominate the green hydrogen economy while achieving its climate and energy targets.
