India has embarked on an ambitious journey to become a green hydrogen superpower. This landmark initiative has huge implications for the nation’s sustainability and energy security. It is also hugely consequential for the global energy transition, coming from the world's third-largest energy consumer. Given the stakes involved, this article looks at the significant milestones of this journey so far – and the big developments to watch out for.

The quest for alternative energy

India's post-liberalization growth was powered largely by fossil fuels. Energy use grew exponentially after 2000 to cater to a more prosperous population. The ensuing rise in energy imports and emissions worried policymakers, sparking a quest for alternative energy sources. The National Hydrogen Energy Roadmap 2006 promoted hydrogen use and identified power generation and transportation as promising sectors. A push towards cleaner energy after the Paris Accord culminated in the Green Hydrogen Policy of 2022. This led to pilot projects like India’s first green hydrogen blending project at Hazira, Gujarat. However, the green hydrogen sector still lacked investment, infrastructure and an enabling ecosystem.

NGHM – turbocharging India's green hydrogen journey

The Rs 19,744 crore National Green Hydrogen Mission (NGHM) was launched in January 2023, to make India a green hydrogen hub. Its SIGHT scheme (Strategic Interventions for Green Hydrogen Transition) offered financial incentives for green hydrogen and electrolyzer production. It was backed by infrastructure initiatives, research and skilling programs and a new regulatory framework. NGHM targeted 5 MMTPA green hydrogen production by 2030, powered by 125 GW new renewable energy capacity. It aimed to attract USD 100 billion (85,476 crore) in investment, create 600,000 jobs and cut fuel imports by USD 12 billion (approx. 10,257 crore) a year.

Industrial pioneers take up the baton

Green hydrogen attracted interest from hard-to-abate industries facing decarbonization pressures. Refineries and fertilizer units were early movers, being large consumers of grey hydrogen. An example of this was ACME’s green hydrogen plant in Bikaner, Rajasthan, launched in 2021. By 2023, the transportation sector saw Fuel Cell Electric Vehicles (FCEV) and Hydrogen Internal Combustion Electric Vehicles (HICEV) concepts from the likes of Tata Motors (trucks) and Olectra (city buses). The steel industry embraced green hydrogen for processes like direct-reduced iron production. During 2024–25, both the steel and transportation sectors began green hydrogen pilot projects under MNRE’s USD 65 million (approx. Rs 555 crore) pilot project guidelines. These would refine the commercial viability of the technology, generate price signals and pave the way for a green hydrogen ecosystem.

Regional hubs take green hydrogen across India

NGHM envisaged the creation of green hydrogen hubs to integrate production, storage and usage, in partnership with states. These hubs were designed to promote economies of scale, reduce infrastructure costs, attract investment and drive exports. The first such hub was launched in 2025 near Visakhapatnam, in a partnership between NTPC and the Andhra Pradesh government. Major upcoming coastal hubs include Kandla in Gujarat (involving Reliance and L&T) and Thoothukudi in Tamil Nadu.

Four companies—Reliance Green Hydrogen & Green Chemicals Ltd, Larsen & Toubro Green Energy Tech Ltd, AM Green Hydrogen Pvt Ltd. and Welspun New Energy Ltd.—have been allocated a combined 3,400 acres by the Deendayal Port Authority near Kandla to establish green hydrogen and ammonia production facilities. Among these, AM Green Hydrogen Pvt Ltd secured approximately 450 acres and Welspun New Energy Ltd. was allotted about 150 acres for their production units as part of the Kandla Green Hydrogen Hub initiative.

From India to the world – green hydrogen goes global

India's emerging green hydrogen ecosystem positions it as a large-scale, cost-competitive exporter of green hydrogen and its derivatives. It is now eyeing 10% of the global market, up to 10 MMTPA by 2030. This ambition is supported by its growing renewable capacity, strategic location and global alliances. Decarbonization will also drive domestic demand, which is consequential given that India is the world’s third-largest energy consumer. India's domestic and export growth will inexorably combine to shape the global energy transition.

India has thus made significant strides in its green hydrogen journey, from pilot industrial applications to an increasingly central role in its energy strategy. Ambitious targets and progressive policies are in place to foster a green hydrogen ecosystem, positioning India to become a clean energy frontrunner – and potentially a world leader in green hydrogen.