Key Takeaways
- India aims for a green hydrogen production capacity of 5 million metric tonnes per year by 2030.
- Approximately ₹700 crore has been allocated for the National Green Hydrogen Mission, with significant funds already utilized.
- Renewable energy costs (solar and wind) currently make up 50–70% of green hydrogen production expenses, around ₹235 per kg.
Green Hydrogen Production in India
India’s green hydrogen production capacity is projected to reach 5 million metric tonnes (MMT) annually by 2030, with 8,000 tonnes per annum already commissioned under the National Green Hydrogen Mission (NGHM), which started in 2023. This initiative aims to establish India as a global leader in green hydrogen production, usage, and export.
Minister of State for New and Renewable Energy, Shripad Yesso Naik, reported this development during a session in the Rajya Sabha. He noted that since the mission’s launch, ₹700 crore has been allocated for the initiative. As of now, ₹250.12 crore has been spent across various fiscal years: in FY24, ₹100 crore was assigned, with only ₹0.11 crore used; in FY25, the budget increased to ₹300 crore, with ₹46.26 crore utilized; and for FY26, ₹300 crore was allocated, of which ₹203.75 crore has been spent as of March 19.
The NGHM’s competitive bidding process for green hydrogen supply has revealed prices between ₹387 and ₹397 per kg, which includes an 18% Goods and Services Tax (GST). The reported prices are for supplying green hydrogen to major refiners including Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.
According to a World Bank Group report cited by the minister, the costs associated with renewable energy—specifically solar and wind—account for approximately 50–70% of total green hydrogen production costs, translating to about ₹235 per kg. This indicates that the pricing of renewable energy will play a significant role in determining India’s competitiveness in the green hydrogen market.
The government launched the NGHM to encourage large-scale green hydrogen deployment, stimulate innovation, and support the development of necessary infrastructure. The mission’s progress suggests a strategic shift in India’s energy landscape, emphasizing sustainability and renewable resources.
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