SUKUMAR SAH
In a world increasingly driven by the imperatives of decarbonisation and energy security, green hydrogen has emerged as a compelling solution. Produced using renewable energy and water electrolysis, it emits no carbon dioxide and holds immense potential to decarbonise hard-to-abate sectors like steel, cement, shipping, and heavy transport. India, with its abundant solar and wind resources, is making an aggressive bid to become not just self-sufficient but a global hub for green hydrogen. The ambition is grand — but is it realistic?
At the forefront of this effort are industrial giants like Reliance Industries and the Adani Group, along with state-owned enterprises such as NTPC, GAIL, and Indian Oil Corporation. Mukesh Ambani has committed more than Rs 85,000 crore to build a fully integrated green energy ecosystem — including electrolyser manufacturing, solar panel production, and hydrogen fuel infrastructure. Gautam Adani has set his sights even higher, declaring his goal of becoming the world’s largest green hydrogen producer, backed by his group’s fast-expanding renewable energy portfolio.
The Government is equally bullish. Under the National Green Hydrogen Mission, launched in January 2023, the Centre has allocated Rs 19,744 crore to develop capacity, support R&D, and encourage domestic demand. The target is to produce 5 million metric tonne (mmt) of green hydrogen annually by 2030, reduce import dependency, and emerge as a competitive exporter. Several states — including Gujarat, Maharashtra, Rajasthan, and Tamil Nadu — have jumped into the fray, offering incentives to attract investment in hydrogen parks and related infrastructure.
However, the challenges are significant. The cost of producing green hydrogen in India is between $4 and $6 per kg, more than double the global benchmark of around $2 per kg required for mass commercial adoption. The technology for electrolysers, which are central to hydrogen production, is still expensive and largely imported, with domestic manufacturing only beginning to scale. Additionally, storage, safety, and distribution infrastructure — especially pipelines and hydrogen-ready ports — are at a nascent stage, lacking both regulatory frameworks and investment-grade viability assessments. Without rapid progress on these fronts, India risks losing momentum in the global hydrogen race.
India’s vision of becoming global hub of clean fuel hinges on consistent policy and sound investment
Compounding this is stiff global competition. Countries like Australia, Saudi Arabia, Chile, Germany, and the UAE are racing to build capacity, backed by larger subsidies and faster regulatory approvals. These nations are actively signing long-term supply agreements with energy-hungry regions like the European Union and Japan, markets that India also hopes to tap.
Yet, India has some unique strengths. It enjoys one of the lowest solar energy costs globally, a robust industrial base, and a large domestic market that can create scale. The country can also leverage its manufacturing capability to become a low-cost supplier of electrolysers and fuel cells, helping to drive down costs both at home and abroad and gain a strategic edge as supply chains diversify from China.
Doubtless, India’s green hydrogen aspirations are ambitious, timely, and strategically sound. But turning this vision into reality will require sustained investment, policy consistency, international collaboration, and a relentless focus on reducing costs. If executed well, India could not only meet a significant share of its domestic energy demand through clean fuels but also emerge as a serious player in the global green hydrogen value chain.