What is Green Hydrogen?
The clean energy carrier that will transform India's energy landscape and drive the nation towards net-zero emissions
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Green Hydrogen is hydrogen gas produced through the electrolysis of water using electricity generated from renewable energy sources like solar, wind, or hydro. This process emits zero greenhouse gases, making green hydrogen a clean and sustainable energy carrier.
Unlike grey or blue hydrogen, which are derived from fossil fuels and emit significant CO₂, green hydrogen offers a carbon-free alternative. It can be stored, transported and utilized across various sectors, including industry, transportation and power generation, thereby playing a pivotal role in the transition to a net-zero emissions future.
Decarbonization of Hard-to-Abate Sectors
Green hydrogen is critical for reducing emissions in sectors where direct electrification is either technically infeasible or economically unviable, including steel manufacturing (through Direct Reduced Iron), refineries (for desulfurization), fertilizer production, cement, chemicals, and long-haul transport, aviation and shipping.
Supports Energy Security and Import Substitution
India is heavily reliant on fossil fuel imports - over 85% of crude oil and 50% of natural gas needs are met through imports. Green hydrogen offers a domestically produced alternative, reducing strategic vulnerabilities and insulating the economy from global fuel price shocks.
Why Green Hydrogen Matters
Industrial Competitiveness and Future-Ready Manufacturing
Adoption of green hydrogen can position Indian heavy industries (steel, cement, petrochemicals) as green manufacturing hubs, compliant with emerging global carbon border adjustment mechanisms (CBAM) and ESG standards, especially from EU and OECD markets.
Enables Long-Duration Energy Storage
Hydrogen acts as a chemical energy carrier, allowing surplus renewable energy (especially solar and wind) to be stored over days, weeks, or even months. This enhances grid stability, addresses RE intermittency and supports round-the-clock clean power solutions.
Foundation for Green Molecules and Energy Trade
Green hydrogen can be converted into green ammonia, e-methanol, synthetic fuels or used for hydrogen-based synthetic aviation fuels. India, with its low renewable energy tariffs and evolving port infrastructure, has the potential to become a net exporter of clean hydrogen-based fuels.
Economic Growth and Job Creation
The green hydrogen ecosystem encompassing electrolyzer manufacturing, EPC services, hydrogen logistics, storage infra and allied industries can generate an estimated 1.5 to 2 million jobs by 2030. It will spur skilling, localised manufacturing and technology innovation.
Technology Leadership and Innovation
Building domestic capability in electrolyzer design, control systems, H₂ storage and digital monitoring will place India at the frontier of next-generation energy technologies. This can drive patents, IP development and Make-in-India solutions for a global green hydrogen market.
Decentralized Energy Development
Green hydrogen allows for the development of energy assets in RE-rich rural or coastal areas, promoting distributed generation models and regional development. It supports state-level green hydrogen clusters and local economic diversification.
National Green Hydrogen Mission
Launched in January 2023, India's National Green Hydrogen Mission (NGHM) aims to position the country as a global hub for the production, utilization and export of green hydrogen and its derivatives.
Key Targets by 2030
5 MMT p.a.
125 GW
Additional RE capacity for hydrogen
Green hydrogen production by 2030
₹8 lakh crore
Expected investment mobilization
600,000+
Clean energy jobs creation
50 MMT
Annual CO₂ emissions avoided
₹1 lakh crore
Fossil fuel import reduction
Green Hydrogen Policy
The Government of India introduced the Green Hydrogen Policy in February 2022 to create a conducive environment for green hydrogen production and utilization.
Key Policy Features:
Waiver of Inter-State Transmission Charges for 25 years
Simplified Open Access procedures within 15 days
Banking facility for unconsumed renewable power up to 30 days
Priority access to land in Renewable Energy Parks
Dedicated manufacturing zones for green hydrogen and ammonia
Port infrastructure support for bunkers and storage facilities
The Future of Green Hydrogen in India
Over the next 24 months, numerous pilot and demonstration-scale projects are scheduled to commence across key industrial verticals including refining, fertilizers, steelmaking and heavy mobility. These early deployments will prove technical feasibility and assess end-to-end supply logistics under Indian conditions.
By 2030, India aims to establish a green hydrogen production capacity of 5 MMTPA, supported by over 125 GW of renewable energy capacity. This will significantly decarbonize industrial hydrogen consumption and enable large-scale production of green ammonia and e-methanol for international markets in the EU, Japan and South Korea.
By 2047, India's 100th year of independence, green hydrogen is poised to be a foundational pillar of the country's net-zero transition, integrated deeply into transport, power, industrial and trade systems. India will emerge as a self-reliant energy economy and global green hydrogen manufacturing hub.
Near-term Outlook (2024-2026)
Medium-term Vision (2030)
Long-term Impact (2047)
Harit Molecules Foundation
The leading non-profit association driving policy formulations and collaborative action for India's green hydrogen sector advancement
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