By Anusshka Duggal
India’s favourable conditions for adopting green hydrogen are becoming increasingly evident. The country’s current hydrogen demand, estimated at 6.7 million tonnes per annum (mtpa), is projected to rise to 24 mtpa by 2050, driven primarily by industrial sectors such as refining, fertiliser production and steelmaking. This growing demand presents a significant opportunity for green hydrogen to replace fossil-fuel-based sources. The economic benefits of green hydrogen are substantial, as reducing reliance on imported fossil fuels can lower the country’s import bill and enhance energy security. Additionally, this transition is expected to create new jobs and stimulate growth in both the renewable energy and hydrogen sectors.
India’s abundant renewable energy resources, particularly solar and wind power, provide a solid foundation for this transition. With nearly 200 GW of renewable energy capacity, India is a global leader in renewable energy adoption and is aiming to achieve 500 GW of non-fossil fuel capacity by 2030.
However, significant investments are needed to fully integrate green hydrogen into India’s energy landscape, including the development of production facilities, storage infrastructure and transportation networks. The government’s focus on infrastructure development, along with collaboration between the public and private sectors, is key to ensuring a smooth transition to a green hydrogen economy.
Global developments
On a global scale, the green hydrogen opportunity is rapidly evolving, with demand expected to surge in the coming years. The global demand for green hydrogen is projected to double between 2021 and 2030, primarily due to reductions in production costs. According to the International Energy Agency, global hydrogen demand reached 95 mtpa in 2023, with expectations of a 6 per cent annual growth in production through 2030. It estimates that annual global demand could go up to 150 mtpa by 2030. While low-emission hydrogen accounted for less than 5 per cent of the total demand in 2021, this figure is anticipated to rise to nearly 10 per cent by 2030. However, to meet the climate pledges of various governments, low-emission hydrogen needs to contribute 18 to 20 per cent of total demand.
The global push for decarbonisation is also driving the demand for green ammonia, with regions such as the European Union (EU), Japan and South Korea setting ambitious import targets. The EU aims to import approximately 14.7 mtpa of green ammonia by 2030 as part of its efforts to reduce its carbon footprint. Japan has set a target of importing 68 mtpa of low-carbon ammonia by 2040, with the potential to shift towards green ammonia in the future. Similarly, South Korea plans to import about 11 mtpa by 2030, driven by its focus on clean energy and the growing need for hydrogen in
various applications.
Policy framework
The Government of India has taken significant steps to promote the adoption of green hydrogen and its derivatives. The release of the Green Hydrogen Policy in February 2022 and the National Green Hydrogen Mission (NGHM) in January 2023 have provided a clear framework for the development of the green hydrogen ecosystem in India. The Ministry of Shipping, Ports and Waterways has also identified three major ports–Deendayal Port, VO Chidambaranar Port and Paradip Port–to support export-oriented green ammonia projects.
The Green Hydrogen Policy, 2022, released in February 2022, establishes a comprehensive framework to facilitate the transition from fossil fuels to green hydrogen and green ammonia. It aims to promote their use as energy carriers and chemical feedstocks across various sectors, contributing to India’s net zero target. Key features of the policy include a single-window clearance system, land allocation in renewable energy parks for production units, the establishment of manufacturing zones and permissions for storage bunkers near ports. Additionally, renewable energy banking is allowed for up to 30 days, enabling producers to store excess renewable energy credits for future use. Infrastructure support, such as connections to the ISTS network and open access within 15 days of application, is prioritised. To further reduce costs, ISTS transmission fees will be waived for 25 years. Renewable energy used in green hydrogen production will count towards the renewable purchase obligation, incentivising clean energy use. Finally, the Ministry of New and Renewable Energy may aggregate demand from various consumers, allowing for consolidated bids to procure green hydrogen and green ammonia.
The NGHM aims to position India as a global leader in the production, use and export of green hydrogen and its derivatives. The mission’s key objectives include enhancing India’s technological capabilities in electrolysers and enabling green hydrogen production. The NGHM has allocated Rs 197.44 billion for this, with Rs 174.9 billion dedicated to promoting electrolyser manufacturing and green hydrogen projects. An additional Rs 14.66 billion will fund pilot projects, Rs 4 billion will go towards research and development, and Rs 3.88 billion will support policy development and
capacity building.
Several Indian states, including Uttar Pradesh, Odisha, Rajasthan, Maharashtra and Andhra Pradesh, have released state-level green hydrogen policies that outline specific targets and incentives for green hydrogen projects. For instance, Maharashtra’s policy offers a 30 per cent capital subsidy on renewable energy, green hydrogen/green ammonia equipment and end uses, along with operational expenditure (opex) subsidies, including waivers on electricity duty, stamp duty and network and open access charges. Andhra Pradesh provides opex subsidies, concessional land rates and similar waivers, though it does not offer a capital subsidy. Odisha’s policy includes a 30 per cent capital subsidy on renewable energy, green hydrogen equipment and green hydrogen/green ammonia, in addition to opex subsidies and waivers. Other states, such as Gujarat, Tamil Nadu, Haryana and Punjab, are in the process of drafting their green hydrogen policies. Most states have offered incentives for renewable energy generation and concessions on transmission and wheeling, as well as support for green hydrogen production, equipment manufacturing and related activities.
Recent auction results
Recent developments under the NGHM include the various auctions conducted under the SIGHT programme, which offers financial incentives for domestic electrolyser manufacturing and green hydrogen production.
Electrolyser Manufacturing (Component I, Tranche I): In July 2023, SECI invited bids to establish 1,500 MW of electrolyser capacity in India. It received 21 bids totalling 3,328.5 MW. In January 2024, eight companies were ultimately selected, including Reliance, John Cockerill and Jindal, each securing 300 MW with a maximum incentive of Rs 4.44 billion. Among the other selected companies were Ohmium Operations (137 MW, polymer electrolyte membrane), Advait Infratech Limited (100 MW, alkaline) and Larsen & Toubro Electrolysers (63 MW, alkaline), with a maximum incentive allocation of Rs 2.03 billion, Rs 1.48 billion and Rs 932.4 million respectively. In Bucket 2, HomiHydrogen won 101.5 MW (AMSE/solid oxide) and Adani New Industries Limited secured 198.5 MW (alkaline), with a maximum incentive allocation of Rs 1.5 billion and Rs 2.94 billion respectively.
Green Hydrogen Production (Component II): In July 2023, SECI launched another bid for green hydrogen producers with a Rs 130.5 billion budget. Capacity was divided into 410,000 mtpa for technology-agnostic pathways and 40,000 mtpa for biomass-based pathways. In January 2024, bid submissions exceeded the available capacity of 450,000 mtpa, reaching 551,500 mtpa across 13 bidders. The winners included Reliance Green Hydrogen and Green Chemicals Limited, Greenko ZeroC and ACME Cleantech, each securing 90,000 mtpa of capacity, while HHP Two (Hygenco) won 75,000 mtpa. Other winners included Torrent Power (18,000 mtpa), CESC Projects Limited (10,500 mtpa), Welspun New Energy (20,000 mtpa), UPL Limited (10,000 mtpa) and JSW Neo Energy Limited (6,500 mtpa). Bharat Petroleum Corporation Limited secured 2,000 mtpa of capacity under Bucket 2, with 38,000 mtpa
remaining unallocated.
Electrolyser Manufacturing (Component I, Tranche II): In August 2024, SECI announced the winners of Tranche II of the electrolyser manufacturing auction, with a total capacity of 1,500 MW under the SIGHT scheme. Thirteen companies were selected across three categories. The largest, Bucket 1, with 1,100 MW of capacity based on any stack technology, saw Waaree Energies secure 300 MW, followed by Matrix Gas and Renewables with 237 MW and Advait Infratech with 200 MW. Other winners included Ohmium Operations (137 MW), GH2 Solar (105 MW), Newage Green Electro (71.5 MW) and Avaada Electrolyser (49.5 MW). In Bucket 2B, which focused on indigenously developed stack technology for smaller units, the maximum capacity awarded was 100 MW. Of this, Adani Enterprises, Eastern Electrolyser and Newtrace were each awarded 30 MW, while Suryaashish KA1 Solar Park secured 10 MW. Meanwhile, in Bucket 2A, dedicated to indigenously developed stack technology, Adani Enterprises was awarded 71.5 MW and Newage Green Electro received 228.5 MW, filling the total capacity of 300 MW.
Future outlook
Looking ahead, India’s hydrogen consumption, which currently accounts for around 7 per cent of global use (approximately 6.7 million metric tonnes per annum [mmtpa]), is set to increase. The government aims to meet at least 5 mmtpa of this demand through green hydrogen by 2030, focusing initially on refining, fertilisers and natural gas blending, with potential future applications in steel, mobility and shipping. As technology matures and costs decline, significant growth is expected in the production, trade and utilisation of green hydrogen and green ammonia, contributing to a decarbonised energy future.
Based on discussions at Renewable Watch’s recent Green Hydrogen in India conference