In present times, both energy security and climate action are demanding a radical energy landscape transformation. With a strong ambition to tackle this rising challenge, India launched its National Green Hydrogen Mission with an outlay of approximately $2.4 billion in January 2023. It is not merely a policy but a transformative initiative that aims to position India as a global leader of the 21st century in the clean energy revolution via the generation, usage, and export of greener hydrogen along with its derivatives by 2030.
Understanding Green Hydrogen
Green hydrogen is basically produced by the electrolysis of water, and renewable energy sources such as solar, wind, and hydropower are used for this electrolysis. Unlike fossil fuels derived from blue or grey hydrogen, which can emit a large amount of greenhouse gases, this green hydrogen offers the best zero-emission alternative, which makes it a crucial pillar to achieve carbon neutrality and eventually decarbonize hard-to-abate sectors like cement, steel, shipping, and fertilizers.
Objectives of India’s Mission for Fuelling A Clean Future
A set of ambitious targets is proposed in India’s Green Hydrogen Mission, which includes the development of a production capacity of at least 5 million metric tonnes per year of green hydrogen by 2030. The addition of a renewable energy capacity of nearly 125 GW dedicated to green hydrogen production is also the keen objective of this project. The facilitation of the development of a green hydrogen ecosystem, including electrolyzer manufacturing, storage, transportation, and utilization, is also required for the smooth working of the project.
The adoption of this large-scale green hydrogen enables India to reduce its annual carbon emissions by 50 million metric tonnes and cut fossil fuel imports by ₹1 lakh crore by 2030. This mission aligns with India’s broader climate commitments, including the COP26 “Panchamrit” pledge, which seamlessly includes achieving a target of net-zero carbon emissions by 2070 and a reduction in the carbon intensity of its economy by nearly 45% by 2030.
Strategic Pillars and Implementation
India has taken several financial incentives in this regard. The Strategic Interventions for Green Hydrogen Transition program, also known as the SIGHT program, allocated ₹17,490 crores for the production of green hydrogen and the manufacturing of domestic electrolyzers.
The industrial integration is also part of the initiative. Several Pilot projects in critical sectors such as mobility, shipping, steel, and fertilizers are underway and demonstrate central significance to industrial decarbonization.
The government of India is also paying attention to increasing manufacturing capacity, and to achieve this government has allocated a sharp production capacity of 862,000 tonnes per year among 19 different companies and awarded nearly 3,000 MW of annual electrolyzer manufacturing capacity to 15 diverse firms.
Furthermore, the Ministry of Environment, Forest and Climate Change has exempted green hydrogen projects plants and green ammonia plants from all environmental clearance requirements.
Renewable Advantage, Economic, and Environmental Impact of the Mission
The Prime Minister of India, Narendra Modi, expressed his views regarding this mission and said:
“Green hydrogen will play a crucial role in helping the nation to mitigate climate change. India should become a global hub for green hydrogen production and exports.”
A strong foundation for the production of affordable green hydrogen is provided by NGHM as 223 GW of renewable energy capacity is installed, which constitutes 108 GW of solar and 51 GW of wind power, with a future target of 500 GW by 2030. Significant investments from corporate players such as Reliance and Adani are further accelerating the progress. The mission is expected to attract rapid investments which are exceeding $100 billion, generating over 600,000 jobs by 2030.
Since India is the world’s third-largest energy consumer and thus it faces rapidly growing energy demands, and its fossil fuel imports have reached $190 billion in 2024. Green hydrogen offers a smooth pathway to reduce this fossil fuel dependence, and thus, it can enhance energy security.
The reduction in the cost of green hydrogen in India by Government support and incentives is projected to be up to 40%, with costs being levelised and expected to fall to ₹260–310 per kg. The mission aims for cost parity between green hydrogen and fossil fuels by the late 2020s.
Policy and Global Partnerships
The Indian Government is focusing on developing global standards, strong regulatory mechanisms, and a supportive “Green Hydrogen/Ammonia Policy” to streamline necessary land allocation, powerful grid connectivity, and other interstate transmission waivers.
The public-private partnerships are actively being promoted by the Indian government. The government is offering financial incentives, and it is also simplifying regulations to attract investments in its green hydrogen sector. India is also trying to collaborate with countries like Japan, Germany, and the UAE for technology sharing, other joint ventures, and export agreements.
Mohamed Jameel Al Ramahi from UAE frames green hydrogen as a “critical enabler” for net-zero emissions, calling for intensified Research and investment through platforms like the Green Hydrogen Summit.
Challenges and Road Ahead
Since Green Hydrogen promises greater benefits, but it faces several challenges. Firstly, the high production costs, as compared to that of conventional hydrogen, are a hurdle. It is reported in the Journal of Sciencedirect that green hydrogen is twice as expensive as fossil fuel sources. Scientists are trying to overcome the cost by scale and innovation, but the challenge persists. Secondly, the infrastructure is limited, and standardized frameworks are absent, which poses great hurdles in the adoption of this mission. Thirdly, robust supply chains need to be built up, and securing long-term demand is important for industry viability. Lastly, other nations such as China, the EU, and the UAE are also investing in green projects, so India needs swift action to win the race.
Conclusion
A watershed moment is presented by this Green Hydrogen Mission in the country’s clean energy revolution. By harnessing its renewable resources, fostering scaling and innovation, and aligning policy with acute market needs, India is not only addressing its issues of energy security and climate challenges but also setting a great example for the world. If executed effectively, with strong political will, robust investments, and strategic international collaborations, this project has the potential to place India at the forefront of the global green energy revolution, driving both economic growth as well as environmental sustainability.
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Qandeel Fatima is a Lecturer of Chemistry at the University of Mianwali. Alongside her dedication to teaching and research, she remains deeply engaged with Pakistan's socio-political landscape and global dynamics, believing that scientific thinking must inform public policy for meaningful national progress. As a committed aspirant of CSS and PMS, she aims to combine her scientific knowledge with public service.