Green Hydrogen Mission
National Green Hydrogen Mission:
India’s National Green Hydrogen Mission represents a transformative leap in the country’s clean energy journey, positioning the nation as a global leader in sustainable hydrogen production and utilization. Launched on January 4, 2023, this flagship initiative embodies India’s commitment to achieving energy independence by 2047 and net-zero emissions by 2070.
What is Green Hydrogen?
Green hydrogen is hydrogen produced through the electrolysis of water using renewable energy sources such as solar, wind, or hydroelectric power. Unlike conventional hydrogen derived from fossil fuels (grey hydrogen) or hydrogen produced with carbon capture technologies (blue hydrogen), green hydrogen generates zero carbon emissions during production. This makes it a truly clean and sustainable energy carrier capable of decarbonizing hard-to-abate sectors where direct electrification remains challenging.
The key distinction lies in the emissions profile: grey hydrogen produces approximately 10 kg of CO₂ per kg of hydrogen, blue hydrogen generates 3.5-4 kg of CO₂ per kg, while green hydrogen produces zero emissions.
Mission Objectives and Targets
The overarching objective of the National Green Hydrogen Mission is to establish India as a global hub for the production, usage, and export of green hydrogen and its derivatives. This ambitious vision will contribute to India’s goal of becoming Aatmanirbhar (self-reliant) through clean energy while inspiring the global clean energy transition.
Key Targets by 2030:
Develop green hydrogen production capacity of at least 5 million metric tonnes (MMT) per annum, with potential to reach 10 MMT based on export market growth
Add approximately 125 gigawatts (GW) of renewable energy capacity
Attract over ₹8 lakh crore in total investments
Create over 600,000 jobs across the value chain
Achieve cumulative reduction in fossil fuel imports exceeding ₹1 lakh crore
Avert nearly 50 million metric tonnes of annual greenhouse gas emissions
Financial Allocation and Budget
The Mission has been allocated an initial outlay of ₹19,744 crore up to the fiscal year 2029-30. This comprehensive budget is strategically distributed across various components:
₹17,490 crore for the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme
₹1,466 crore for pilot projects across multiple sectors
₹400 crore for research and development initiatives
₹388 crore for other Mission components including testing facilities, standards development, and institutional support
The SIGHT Programme: Catalyzing Domestic Manufacturing
The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme forms the cornerstone of the Mission’s supply-side incentive framework. Implemented by the Solar Energy Corporation of India (SECI), SIGHT comprises two distinct financial incentive mechanisms designed to stimulate the entire green hydrogen value chain.
Component I: Electrolyser Manufacturing Incentives
This component aims to maximize indigenous electrolyser manufacturing capacity with a total outlay of ₹4,440 crore from FY 2025-26 to FY 2029-30. The objectives include achieving lower levelized costs of hydrogen production, ensuring globally competitive performance and quality, progressively enhancing domestic value addition, and supporting both established and promising electrolyser technologies.
As of January 2024, 1,500 MW capacity has been awarded to eight companies, including major players like Reliance Electrolyser Manufacturing Limited and L&T Electrolyser Limited. The competitive bidding process attracted 21 companies proposing a combined electrolyser manufacturing capacity of 3.4 GW.
Component II: Green Hydrogen Production Incentives
With an outlay of ₹13,050 crore, this component focuses on maximizing green hydrogen and derivative production, enhancing cost-competitiveness versus fossil-based alternatives, and encouraging large-scale utilization. By January 2024, 412,000 tonnes per annum capacity was awarded to 10 companies, including Adani New Industries Limited.
As of 2025, substantial progress has been achieved, with 19 companies receiving allocations totaling 862,000 tonnes of annual production capacity.
Green Hydrogen Certification Scheme (GHCI)
Launched in April 2025 by the Ministry of New and Renewable Energy, the Green Hydrogen Certification Scheme of India establishes a robust framework for certifying green hydrogen production and ensuring transparency, traceability, and market credibility.
Key Features:
Hydrogen qualifies as “green” if produced using renewable energy with emissions below 2 kg of CO₂ equivalent per kg of hydrogen (averaged over 12 months)
Verification conducted by Bureau of Energy Efficiency (BEE) Accredited Carbon Verification (ACV) Agencies
Two types of certificates: concept certificate (voluntary) and facility-level certificate (mandatory)
Certificates are non-transferable, non-tradeable, and cannot be claimed for emission reduction credits
Applies to hydrogen produced through electrolysis or biomass conversion
The certification scheme prevents greenwashing, builds global trust in India’s green hydrogen exports, and provides a guarantee of origin ensuring transparency and authenticity.
Green Hydrogen Hubs: Strategic Port Development
The Ministry of New and Renewable Energy has identified three major ports as Green Hydrogen Hubs under the National Green Hydrogen Mission:
Deendayal Port (Kandla), Gujarat – Features India’s first port-based green hydrogen plant, inaugurated in July 2025, with a 1 MW capacity producing approximately 140 metric tonnes annually
V.O. Chidambaranar Port (Tuticorin), Tamil Nadu
Paradip Port, Odisha
These strategically located ports leverage India’s position on global trade routes to facilitate green hydrogen production, utilization, and export. The hub recognition enables access to incentives under various central and state schemes, catalyzes industrial participation, and promotes clean fuel innovation across maritime logistics.
Applications and Pilot Projects
The Mission supports pilot projects across emerging end-use sectors to demonstrate technical feasibility, validate performance, and evaluate economic viability.
Steel Sector Transformation
In January 2024, the government sanctioned three pilot projects for integrating hydrogen into steel production with total financial support of ₹347 crore:
Matrix Gas and Renewables Ltd (50 tonnes per day capacity)
Simplex Castings Ltd (40 tonnes per day capacity)
Steel Authority of India Ltd, Ranchi (3,200 tonnes per day capacity)
These projects focus on producing Direct Reduced Iron (DRI) using 100% hydrogen, reducing coal/coke consumption in blast furnaces, and injecting hydrogen in vertical shaft-based DRI units.
Fertilizer Industry Decarbonization
India’s fertilizer sector, which currently consumes approximately 17-19 million tonnes of ammonia annually, presents a significant opportunity for green hydrogen adoption. The Solar Energy Corporation of India issued a landmark tender for 724,000 tonnes of green ammonia annually across 13 fertilizer plants.
In a historic development, India’s first green ammonia auction in 2024 discovered a record low price of ₹49.75 per kg (later reported as ₹55.75/kg), compared to ₹100.28 per kg in 2024, for supply to Paradeep Phosphates in Odisha. This breakthrough demonstrates the improving cost competitiveness of green hydrogen derivatives.
Mobility and Transport Sector
Five pilot projects under the Mission will deploy 37 hydrogen-powered vehicles (15 fuel cell and 22 hydrogen internal combustion engines) across key routes including Greater Noida-Delhi-Agra, Bhubaneshwar-Konark-Puri, and Ahmedabad-Vadodara-Surat. Nine hydrogen refueling stations will support these initiatives with government allocation of approximately ₹208 crore.
Notable achievements include NTPC’s fuel cell electric buses operational in Leh at 11,500 feet altitude, demonstrating hydrogen’s resilience in extreme conditions. Indian Railways has announced plans to deploy hydrogen-powered Vande Bharat trains by 2026.
Renewable Energy Foundation
India’s abundant renewable energy resources provide the foundation for green hydrogen production. As of March 2025, India’s renewable energy installed capacity reached 220.10 GW, with record addition of 29.5 GW in FY 2024-25. The country has installed over 223 GW of renewable energy, including 108 GW from solar and 51 GW from wind, ranking 4th globally in renewable energy installed capacity.
India’s favorable geographic location and abundance of sunlight and wind create ideal conditions for cost-competitive green hydrogen production. States like Rajasthan, Gujarat, Karnataka, Tamil Nadu, and Andhra Pradesh possess some of the highest solar and wind potential.
Implementation Phases
The Mission unfolds in two strategic phases:
Phase I (2022-23 to 2025-26): Focus on creating demand and supply by incentivizing domestic electrolyser production, with initial deployment in existing hydrogen-using sectors like refineries, fertilizers, and city gas distribution. This phase includes pilot projects for steel, mobility, and shipping, alongside establishing regulatory frameworks.
Phase II (2026-27 to 2029-30): Anticipates green hydrogen achieving cost competitiveness with fossil fuels, leading to expanded production and commercial-scale projects in new sectors such as steel, mobility, shipping, railways, and aviation. Intensified research and development will drive continuous innovation and deep economic decarbonization.
Testing Infrastructure and Standards Development
In July 2024, the government issued scheme guidelines for funding testing facilities, infrastructure, and institutional support with a budgetary outlay of ₹200 crore till FY 2025-26. The National Institute of Solar Energy (NISE) serves as the scheme implementation agency.
Over 100 green hydrogen standards and protocols have been adopted or are under development to ensure quality, safety, and performance across the value chain. Five new testing facilities have been sanctioned to support safe and secure operations.
International Collaboration
India actively pursues international partnerships to accelerate green hydrogen development:
Netherlands: Indo-Dutch Green Hydrogen Taskforce collaborates on research, technology transfer, and implementation of hydrogen valley innovation clusters
Germany: Indo-German Green Hydrogen Partnership focuses on clean energy transition, with collaborations through the Indo-German Energy Forum and the 2024 Indo-German Green Hydrogen Roadmap
Japan, Australia, UAE: Partnerships for technology transfer and investment in green hydrogen production
European Union: Second India-EU Green Hydrogen Forum held in Rotterdam in May 2025 to strengthen bilateral cooperation
China: GH2 India signed MoU with International Hydrogen Fuel Cell Association (IHFCA) to foster global hydrogen ecosystem collaboration
Challenges and the Path Forward
Despite ambitious targets, several challenges require strategic attention:
Cost Competitiveness: As of 2025, green hydrogen production costs in India range from $3.7 to $6 per kg, significantly higher than grey hydrogen. Renewable power costs account for 65-70% of total production expenses. However, technological advances and economies of scale are progressively reducing costs.
Infrastructure Development: India currently lacks comprehensive hydrogen transport, storage, and refueling infrastructure at commercial scale. Developing pipelines, cryogenic tankers, and distribution networks requires substantial investment and new engineering standards.
Water and Land Constraints: Each kilogram of green hydrogen requires 9-20 liters of ultra-pure water, posing challenges in water-stressed regions like Rajasthan and Gujarat. Additionally, utility-scale renewable installations require large land parcels, adding complexity to project siting.
Transmission Challenges: For projects connected to Inter-State Transmission System (ISTS), transmission-related charges can raise landed power costs to 1.5-2.5 times the base electricity generation cost. However, state-specific waivers and incentives vary widely, with reductions ranging from 1% in West Bengal to 61% in Odisha.
State-Level Policy Support
Fifteen Indian states have announced dedicated green hydrogen policies to support Mission objectives. States like Maharashtra, Uttar Pradesh, and Odisha offer capital subsidies of 25-35%, reducing power costs by 20-22%. These policies facilitate land allocation, ensure water availability, promote renewable power banking, and incentivize innovation through hydrogen hub development.
Export Potential and Global Leadership
India aims to capture approximately 10% of global green hydrogen demand, projected to exceed 100 million metric tonnes by 2030. The Mission positions India not only as a major producer but as a reliable global exporter, leveraging strategic port locations and competitive production costs.
The development of dedicated hydrogen hubs at Kandla, Paradip, and Tuticorin enables India to serve international markets efficiently, contributing meaningfully to global decarbonization efforts.
Employment Generation and Economic Impact
The Mission is expected to create over 600,000 jobs across manufacturing, installation, operation, maintenance, research, and allied sectors by 2030. This employment generation spans the entire value chain from electrolyser manufacturing to hydrogen production, storage, transportation, and end-use applications.
The ₹8 lakh crore investment projection encompasses public and private sector participation, driving economic growth while advancing environmental sustainability.
Significance for India’s Energy Transition
The National Green Hydrogen Mission addresses multiple strategic imperatives:
Energy Security: Reduces dependence on imported fossil fuels and feedstock, with cumulative import reduction exceeding ₹1 lakh crore by 2030
Climate Action: Supports India’s commitment to reduce emissions intensity of GDP by 45% by 2030 from 2005 levels and achieve net-zero emissions by 2070
Industrial Decarbonization: Enables clean energy transition in hard-to-abate sectors including steel, fertilizers, petroleum refining, cement, and heavy transport
Technological Leadership: Develops indigenous manufacturing capabilities and positions India at the forefront of green hydrogen technology and innovation
Economic Development: Catalyzes investments, creates high-quality employment, and establishes new industrial value chains
Conclusion
India’s National Green Hydrogen Mission represents a comprehensive, strategic approach to clean energy transition, combining ambitious production targets with robust policy frameworks, financial incentives, infrastructure development, and international collaboration. The Mission’s phased implementation, emphasis on indigenous manufacturing, and focus on demonstration projects position India to achieve its 2030 targets while building a foundation for long-term energy security and climate leadership.
The progressive reduction in green hydrogen costs, breakthrough pricing in green ammonia auctions, successful pilot deployments across steel, fertilizer, and transport sectors, and establishment of strategic hydrogen hubs demonstrate that India’s green hydrogen ambitions are transitioning from vision to tangible reality. As renewable energy capacity expands and technological innovations continue, green hydrogen will play an increasingly vital role in India’s journey toward a sustainable, self-reliant, and carbon-neutral future.
