With climate change now a global concern, the urgency is mounting to find cleaner, sustainable energy solutions. Along with technologies that may provide substitutes, green hydrogen is now seen as a strong contender for a global energy transition to renewable energy.
In India where dependence on fossil fuels is high, green hydrogen provides a chance to help reduce carbon emissions, improve energy independence, and assist with a transition to a fossil free future. However, can green hydrogen deliver on its promises or revolutionize India’s energy landscape?
What Is Green Hydrogen?
Green hydrogen is made via a process called electrolysis, in which renewable electricity (derived from solar, wind, or hydropower) is utilized to split a water molecule into hydrogen and oxygen. In the electrolysis process, H₂ is separated from O₂ without converting any fossil fuel, which means no carbon dioxide is generated in the process. As a result, it is a clean and sustainable energy source.
Green hydrogen is inherently renewable and free of carbon emissions in the production process (as opposed to grey or blue hydrogen), making it a crucial part of the plan for reducing fossil fuel utilization and ultimately creating carbon-neutral energy solutions for the planet.
According to Marketintelo, “The Global Green Hydrogen market size was valued at $4.7 billion in 2024, and is forecasted to hit $65.2 billion by 2033, growing at a robust CAGR of 33.1%.”
Why Green Hydrogen Matters for India
India is now one of the largest emitters of carbon dioxide, being #3 globally, and imports almost 85% of its crude oil. The increasing energy demand, in conjunction to climate change, makes the need for energy source diversity very clear. Green hydrogen addresses several of India’s challenges:
- Decarbonizing key sectors – while electricity will decarbonize most energy usages, heavy industries, such as steel, cement, and fertilizers, will be challenging to decarbonize only with electricity, thus hydrogen can provide a fossil fuel replacement.
- Reduction of energy import – Hydrogen can be produced across India and will reduce India’s foreign energy dependence, especially the very costly fossil fuel imports.
- Energy storage solution – Hydrogen is now viewed as a storing solution for and capturing surplus energy generation from religion processes, offgrid, as well as, grid integration.
- Supporting renewables expansion – In this capacity, hydrogen can process and sequester surplus renewable energy production, a prescription required to support higher renewable percentages in grid loading without overwhelming but balancing interdependence.
India’s Green Hydrogen Mission
In 2021, the Indian government launched the National Green Hydrogen Mission, which intends to reach 5 million metric tonnes of green hydrogen producers by 2030. India is expected by the government to be one of the predominant producers and exporters of green hydrogen for commercial purposes worldwide.
The listed goals of the mission include:
- Electrolyzer production facilitation: India would like to establish an internal supply chain for producing electrolysis, in order to achieve reduction in costs.
- Hydrogen hub development: Hydrogen hubs will be developed to support the development of sites to produce, store, and ultimately utilize hydrogen.
- Industry Participation: Fertilizer, refineries, and steel manufacturing can emit a lot lower greenhouse gas with higher usages of hydrogen, the industry participation part will deal with this portion of green hydrogen and hydrogen technology.\
- Retrenching: Exporting green hydrogen produced in India with renewable sources, to countries transitioning away from fossil fuels (i.e. Europe, Japan).
Current Developments in India’s Green Hydrogen Sector
India has seen some major developments – both in public and private opportunities:
Public sector opportunities: NTPC and Indian Oil Corporation have all announced green hydrogen initiatives for mobility and refineries.
- Private sector opportunities: Large conglomerates such as Reliance Industries and Adani Group are already signaling to put a lot of money into green hydrogen and electrolyzer production.
- Renewable energy opportunities: States like Gujarat, Rajasthan, and Tamil Nadu that have renewables potential from solar and wind sources are emerging as green hydrogen hubs.
The evidence is building that India is looking to develop a hydrogen economy.
Challenges Facing Green Hydrogen in India
While there is enthusiasm surrounding the future possibilities, there are major challenges to address before green hydrogen can become the primary hydrogen carrier in India:
- Production cost: Currently green hydrogen is around $4 – $6/kg, while grey hydrogen is $1 – $2/kg. There will also need to be a significant upfront investment in electrolysers and renewable energy, often on large scale, before a significant reduction in price occurs.
- Lack of infrastructure: Hydrogen will need to free up safe and secure means of transport, storage, and distribution, which we will need to invest in applications for infrastructure.
- Technological challenges: Electrolyser efficiency and longevity will need to be improved to produce hydrogen in greater volumes and utilise hydrogen on a larger scale.
- Water insecurities: Producing renewable hydrogen requires significant amounts of purified water which could also be challenging in drier parts of India.
- Policy clarification: Some high level guidance has been given by the government, but they are still in the early days of finalising a regulatory regime, and incentives that are appropriate for green hydrogen.
Opportunities for India’s Energy Transition
Overall, that means that despite some challenges, green hydrogen will create huge opportunities for promoting United Nations sustainable development in India.
- Decarbonizing industrial emissions: Hydrogen could be the next major market in India for the steel and fertilizer fossil fuel industry; a clean alternative that helps India meet decarbonization commitments.
- Green transportation: Hydrogen, though just a small segment of hydrogen-powered vehicles today, can serve as a viable alternative for heavy/long-distance transport vehicles, while charging battery electric vehicles.
- Jobs: A hydrogen economy will generate jobs throughout the associated markets, tied to manufacturing, engineering employers and renewable energy.
- Global leadership: India’s renewable energy development potential could be leveraging the low-cost options to export green hydrogen.
Green Hydrogen vs. Other Clean Alternatives
The future of clean energy for India features solar, wind, and biofuels, but has multiple unique advantages over these sources too.
- Hydrogen is storable and transportable, unlike renewable energy sources that are intermittent and need storage batteries.
- Hydrogen can also decarbonize some other sectors that electricity alone cannot.
- Hydrogen enhances, rather than competes with other renewables, creating a mix of renewables that are flexible and integrated in use.
Hydrogen will help contribute to a fossil-free ecosystem, but it would be part of a number of a choice – not simply replace or directly replicate other renewables.
Global Lessons for India
Countries like Germany, Japan, and Australia are already heavily investing in green hydrogen.
- On the other hand, Germany is already working to set up international partnerships to import hydrogen.
- Japan is promoting hydrogen vehicles and supporting hydrogen infrastructure.
- Australia will use its renewable energy potential to become a significant exporter.
India can benefit from the international experiences to adapt a local strategy. Partnership with Germany, Japan and Australia may also facilitate technology transfer and investments.
The Road Ahead
In order for India to position green hydrogen as a genuine disruptor, some, or all of the following changes will need to be enacted:
- Policy support: Meaningful development of subsidies, tax breaks and hydrogen use directives for industry.
- Scaling renewable capacity: We need to develop readiness for low-cost solar and wind power to electrolyze.
- Investing in R&D: We need to be advancing electrolyzer technology, performance and reduce reliance on foreign equipment.
- International collaboration: We need to create trade partnerships and agreements to export hydrogen to other nations and import technology to advance a hydrogen economy.
- Public-private partnerships: We need to encourage alignment of government programs and contracts to encourage private sector development and innovation.
Conclusion
Green hydrogen has fantastic potential for India’s clean energy transition, but issues remain, including costs, technology and infrastructure. Still, the long-term advantages for India from decarbonization potential, energy security and deep industrial transformation will make the journey justifiable.
If India and the ecosystem can move up the green hydrogen production curve successfully, this is likely to be a game-changer for a fossil fuel free future for India and the globe.