India's Green Hydrogen Revolution: Policies, Incentives, and Future Outlook
Key Ideas
  • India is on track to become a key player in the global green hydrogen economy, focusing on its potential as a clean fuel across various industries and as a means to achieve decarbonisation goals.
  • The National Green Hydrogen Mission (NGHM) with a substantial initial outlay aims to establish 5 million metric tonnes of annual green hydrogen production capacity by 2030, attracting significant investments and generating jobs.
  • Government policies, such as the waiver of interstate transmission charges, incentives for green hydrogen production, and funding guidelines for testing facilities, aim to accelerate the growth of the green hydrogen sector in India.
  • Recent tender activities, including calls for proposals for green hydrogen hubs, indicate a positive momentum in the sector, with a focus on large-scale production and use of green hydrogen.
India is stepping up as a significant player in the global green hydrogen economy, recognizing hydrogen's potential as a versatile and clean fuel crucial for decarbonization efforts. The National Green Hydrogen Mission (NGHM), launched in January 2023, aims to establish 5 million metric tonnes of annual green hydrogen production capacity by 2030, attracting substantial investments and creating over 600,000 jobs. The mission, with an initial outlay of Rs 197.44 billion, focuses on various industries like aviation, maritime, refining, fertilizers, and power generation. The government's policies, including strategic interventions like the SIGHT program to promote domestic manufacturing of electrolysers and green hydrogen production, have been instrumental. Waivers of interstate transmission charges and incentives for green hydrogen production units are set to propel the sector's growth. Moreover, funding guidelines for green hydrogen testing facilities aim to enhance testing infrastructure and promote collaboration between private and government entities. Recent tender activities have added further momentum to the sector, showcasing a positive outlook. Notable tenders include calls for proposals for green hydrogen hubs to support large-scale production and use of green hydrogen. The sector's potential in India aligns with broader objectives of expanding renewable energy capacity, ensuring energy security, and achieving self-sufficiency in energy needs. With a focus on innovation, policy support, and strategic investments, India's green hydrogen revolution is well underway.
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