India

India Flag
GH2 Country Portal – India

Green hydrogen vision

India’s National Hydrogen Mission is a major policy enabler to make India reach its climate targets and become a hub for green hydrogen and green ammonia production (National Hydrogen Mission). In addition, it is targeting to reduce its dependence on fossil fuels and scale up its renewable energy capacity GW 500. The aim is to bring down the cost of green hydrogen to $1.5 per kg and have five million tonnes per year green hydrogen capacity by 2030. 

India has an advantage here due to its geographical location, climate conditions and abundance of renewable sources of energy like solar, wind and hydropower making it ideal for becoming the world’s cheapest hub for green hydrogen by 2050.  

“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.”- Narendra Modi, Prime Minister of India 

National Strategy

India’s National Hydrogen Mission announced in August 2021 will set out a roadmap for using hydrogen to meet its climate targets and make India a green hydrogen hub. The Mission focuses both on the short term and the long term (a decade and more). The aim of the mission is to develop a global hub for hydrogen technologies manufacturing and support manufacturing via incentives. The Government will also facilitate demand creation in specific areas, including mandates for the use of green hydrogen in industry (fertilizer, steel, petrochemicals etc.), and its demonstration in transport applications. 

The Ministry of Power released a first part of the national green hydrogen policy on 17 February 2022 focused on measures towards green hydrogen research, demand, and infrastructure development. Further policy measures are expected, focusing on the demand-side and incentivizing use of green hydrogen in refineries, fertilizers, steel, shipping and heavy-duty transportation. 

The initial measure in the strategy enables more flexibility for hydrogen producers in terms of sourcing and development of renewable electricity. It offers liberty to set up renewable capacity for green hydrogen anywhere by manufacturers themselves or with a developer. A key measure mentioned in te strategy is that the renewable energy used for green hydrogen production will get open access. This is expected to bring down the cost of green hydrogen production by 40 to 50%1. A single portal will be established for all statutory clearances which would be provided within 30 days of receipt of application. 

In the very recent update, the Indian cabinet approved the National Green Hydrogen Mission on January 5th, 2023. The National Green Hydrogen Mission aims to make India a leading producer and supplier of Green Hydrogen in the world.

The Mission targets setting up of at least 5 MMT (Million Metric Tonne) per annum of green hydrogen capacity with an associated renewable energy capacity of about 125 GW by 2030. The targeted production capacity will bring over €2.24 billion in total investments. It is expected to have a total of €90 billion in investments by 2030 in India.

Capacity and price

  • The Indian government has set out an ambitious green hydrogen production target of 5 million metric tonnes per annum by 2030, with an associated renewable energy capacity of about 125 GW by 2030.

  • To reach this production target, the government aims for 15 GW by 2030 of electrolysis capacity.  

  • The policy measures in the Hydrogen Mission are expected to reduce the green hydrogen production cost to $1.5 per kg by 2030. 

Impact targets

Through the National Green Hydrogen Mission, the India government targets:

- Creation of 600,000 jobs by 2030.

- Cumulative reduction in fossil fuel imports over € 11.4 billion by 2030.

- Abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.

- An expected investment of over €90 billion in green hydrogen by 2030.

Policy spotlight

  • Purchase of renewable power: In February 2022, The Ministry of Power announced a set of policy measures to incentivise green hydrogen production. As part of these measures, green hydrogen and ammonia manufacturers can purchase renewable power from the power exchange or set up renewable energy capacity anywhere. Open access to renewable energy will be granted within 15 days of receipt of application.  

  • Waiver of inter-state transmission costs: green hydrogen and ammonia manufacturers shall be allowed a 25-year waiver of inter-state transmission charges for the projects commissioned before 30 June 2025.  

  • Bunker storage for shipping: green hydrogen and green ammonia producers will be allowed to set up bunkers near ports for storage of green ammonia for export and use by the shipping sector. The land for the storage for this purpose shall be provided by the respective port authorities at applicable charges. 

Financing

  • Under the National Green Hydrogen Mission, the Indian cabinet approved a total of €2.24 billion for the initial outlay. It includes €1.98 billion for the SIGHT programme, €166 million for pilot projects, €45 million for R&D and €44 million towards other Mission components.

  • According to India Hydrogen Alliance (IH2A), India needs approximately $15 billion in public and private funding to meet its targeted 15 GW electrolysis capacity.  

  • Reliance Industries has committed $75 billion for green hydrogen generation plants, solar panels and electrolyzers.  

  • Adani Industries has set a $70 billion investment target to produce the world's cheapest green hydrogen in India. 

Government GH Lead

Comments

India’s National Green Hydrogen Mission approved by the government in January 2023 is a major policy enabler by the government for production, export and utilisation of green hydrogen and ammonia. In the coming months, the government is planning to introduce Green Hydrogen Consumption Obligation in petroleum refining and fertiliser production on similar lines of renewable purchase obligation.