Green Hydrogen Gains Momentum in India as National Mission Targets 5 Million Tonnes of Annual Production by 2030
By Suman Munshi | IBG NEWS
NEW DELHI, 2 November 2026: India is accelerating its transition towards a cleaner and more self-reliant energy economy, with green hydrogen emerging as a strategic alternative for industries and transport sectors that remain heavily dependent on fossil fuels. Supported by the National Green Hydrogen Mission (NGHM), the country is developing domestic manufacturing capabilities, production infrastructure, research programmes and international partnerships to position itself as a major global supplier of low-emission hydrogen and its derivatives.
The Government’s strategy combines renewable electricity, indigenous electrolyser manufacturing, industrial applications, investment incentives and certification mechanisms. The National Green Hydrogen Mission aims to establish an annual production capacity of at least 5 million metric tonnes (MMT) by 2030, with the potential to reach 10 MMT annually if export demand is included.
Hydrogen.pdf
The developments come as the Bharat Renewable Energy Summit & Expo (Bharat RE) 2026 is being held from 2 to 5 November at Bharat Mandapam, New Delhi, under the theme Invest. Innovate. Inspire. The event brings together policymakers, ministers, investors, financial institutions and industry representatives from more than 130 countries.
Understanding Green Hydrogen and Its Role in Clean Energy
Hydrogen is an energy carrier that can store and deliver energy for different applications. When used in a fuel cell, it reacts with oxygen to generate electricity, producing water and heat at the point of use.
However, hydrogen is not automatically a clean fuel. Its environmental impact depends largely on the production method.
Conventional hydrogen production often relies on fossil fuels and generates carbon emissions. Green hydrogen, by contrast, is produced by splitting water through electrolysis using renewable electricity, primarily from solar and wind energy.
The process separates water into hydrogen and oxygen:
\[ 2H_2O \rightarrow 2H_2 + O_2 \]
An electrolyser performs this operation using two electrodes—an anode and a cathode—with an electrolyte and a separator or diaphragm. Hydrogen is collected at the cathode, while oxygen is released at the anode.
According to the Ministry of New and Renewable Energy (MNRE), approximately nine litres of demineralised water are required to produce one kilogram of hydrogen. The hydrogen must subsequently be dried, purified and compressed for storage and transportation.
Hydrogen.pdf
India Establishes a Formal Green Hydrogen Standard
An important step towards building a credible domestic hydrogen industry was the notification of India’s Green Hydrogen Standard by the Ministry of New and Renewable Energy in August 2023.
Under this standard, hydrogen qualifies as green when its emissions do not exceed 2 kilograms of carbon dioxide equivalent per kilogram of hydrogen, calculated on a well-to-gate basis and measured as a 12-month average.
This provides a common benchmark for assessing production-related emissions and helps establish credibility in domestic and international markets.
The Government also launched the Green Hydrogen Certification Scheme of India in April 2025. The Bureau of Energy Efficiency (BEE) accredits agencies responsible for monitoring, verification and certification. A dedicated online portal became operational in June 2026 to support transparent certification and compliance.
Hydrogen.pdf
Hydrogen.pdf
Where Can Green Hydrogen Be Used?
Green hydrogen is particularly relevant to industries where reducing emissions through direct electrification is difficult or technically challenging.
1. Fertiliser manufacturing
Ammonia is produced using hydrogen and nitrogen and forms the basis of important nitrogen fertilisers, including urea. Much of the hydrogen currently used in this sector comes from natural gas. Replacing fossil-based hydrogen with green hydrogen could reduce emissions associated with ammonia and fertiliser production.
2. Petroleum refining
Refineries use hydrogen to remove sulphur from petrol and diesel and to process heavier petroleum products into fuels such as diesel, aviation turbine fuel and naphtha. Green hydrogen could reduce the carbon footprint of these operations.
3. Iron and steel manufacturing
Conventional steelmaking uses coal to remove oxygen from iron ore, generating carbon dioxide. In direct reduced iron processes, green hydrogen can perform this reduction, with water vapour produced instead of carbon dioxide during the reduction stage.
4. Road and rail transport
Hydrogen fuel-cell vehicles convert hydrogen into electricity to power electric motors. This technology could support buses, trucks and trains requiring long operating ranges and relatively quick refuelling.
5. Shipping
Green hydrogen can be converted into green ammonia and green methanol, which may serve as alternatives to conventional marine fuels. Wider adoption will depend on fuel compatibility, safety regulations and suitable port infrastructure.
6. City gas networks and energy storage
Green hydrogen can be blended with natural gas in limited proportions, subject to safety requirements and infrastructure compatibility. It can also contribute to energy storage and help integrate renewable electricity into the wider energy system.
7. International exports
India’s renewable energy resources could support the production and export of green hydrogen, green ammonia and green methanol to countries seeking lower-emission fuels.
Hydrogen.pdf
National Green Hydrogen Mission: Major Financial and Production Targets
The Union Cabinet approved the National Green Hydrogen Mission in January 2023 with a total financial outlay of ₹19,744 crore.
The mission is designed to develop an integrated domestic ecosystem covering renewable electricity, electrolysers, hydrogen production, storage, transportation and end-use industries.
One of its principal components is the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, which has an allocation of ₹17,490 crore up to 2029–30. It provides incentives for domestic electrolyser manufacturing and green hydrogen production.
Hydrogen.pdf
Table 1: Key Progress under the SIGHT Programme
| Indicator | Reported progress |
|---|---|
| Companies awarded electrolyser manufacturing incentives | 15 |
| Manufacturing capacity supported | 3,000 MW per annum |
| Green hydrogen capacity commissioned by February 2026 | Approximately 8,000 tonnes per annum |
| Green hydrogen production capacity awarded incentives | 8,62,000 tonnes per annum |
| Green hydrogen offtake commitments signed by October 2026 | More than 5.5 lakh MTPA |
The backgrounder describes the offtake commitments as the world’s largest green hydrogen supply commitments, indicating growing interest from prospective buyers and industrial users.
Hydrogen.pdf
Pilot Projects Target Steel, Mobility and Shipping
The National Green Hydrogen Mission is also supporting pilot projects to test the use of hydrogen in sectors where replacing fossil fuels involves technological and infrastructure challenges.
The mission has earmarked ₹455 crore for low-carbon steel projects up to 2029–30, ₹496 crore for mobility projects and ₹115 crore for shipping projects up to 2025–26, as stated in the backgrounder.
Table 2: Progress in Pilot Projects
| Sector | Project details |
|---|---|
| Steel | Five pilot projects sanctioned |
| Hydrogen injection in steelmaking | ₹84 crore sanctioned for testing 100% hydrogen injection |
| Hydrogen mobility | 12 projects covering 70 vehicles |
| Buses | 27 |
| Trucks | 43 |
| Refuelling infrastructure | 16 hydrogen refuelling stations across 21 routes |
| Financial assistance for mobility infrastructure | ₹41.58 crore released |
| Green methanol for shipping | Pilot project awarded by V.O. Chidambaranar Port Authority |
The shipping initiative involves developing bunkering and refuelling facilities for green methanol. The project is estimated to cost ₹38.12 crore, including an MNRE grant of ₹35 crore.
Hydrogen.pdf
Hydrogen.pdf
Green Hydrogen Hubs to Strengthen Production and Distribution
Transporting hydrogen over long distances can be technically challenging and expensive. To address this issue, the mission promotes integrated production and consumption clusters known as Green Hydrogen Hubs and Hydrogen Valley Innovation Clusters (HVICs).
These clusters bring production facilities, industrial consumers and supporting infrastructure closer together, potentially improving project viability and reducing logistical costs.
Three ports have been recognised by MNRE as green hydrogen hubs:
- Deendayal Port, Kandla, Gujarat
- V.O. Chidambaranar Port, Tuticorin, Tamil Nadu
- Paradip Port, Odisha
An indigenously developed 1 MW green hydrogen plant was commissioned at Kandla Port in July 2025. Four Hydrogen Valley Innovation Clusters have also been awarded at Jodhpur, Odisha, Pune and Kerala.
Hydrogen.pdf
India’s First Indigenous Hydrogen-Powered Train
An important milestone in India’s hydrogen mobility programme was the inauguration of the country’s first indigenous hydrogen-powered train on 17 July 2026 on the Jind–Sonipat section.
The 10-car trainset has a reported passenger capacity of approximately 2,600. A hydrogen storage facility at Jind can hold nearly 3,000 kilograms of hydrogen.
The train uses hydrogen fuel-cell technology and produces water vapour and heat at the point of operation. The project represents an early step towards evaluating hydrogen-powered rail transport in India.
Hydrogen.pdf
Policy Incentives to Make Green Hydrogen More Competitive
The Government has introduced several policy measures intended to reduce production costs and encourage investment.
Among the measures highlighted in the backgrounder are:
- Green hydrogen and green ammonia plants commissioned by 31 December 2030 are eligible for exemption from Inter-State Transmission System (ISTS) charges for 25 years.
- The Green Energy Corridor Scheme supports the transmission of renewable electricity.
- Eligible renewable energy installations within Special Economic Zones can receive specified duty benefits.
- Certain standalone green hydrogen and green ammonia plants using renewable-powered water electrolysis are exempt from prior Environmental Clearance under the applicable notification.
- Eligible renewable energy facilities supplying electricity exclusively to green hydrogen production units can receive specified exemptions from ALMM and RLMM requirements.
- The Green Hydrogen and Green Ammonia Policy provides for Open Access within 15 days and banking of surplus renewable electricity for up to 30 days, subject to applicable provisions. Hydrogen.pdf
Research, Innovation and Skill Development
The mission places considerable emphasis on research and development to improve the affordability, efficiency, reliability and safety of hydrogen technologies.
The Strategic Hydrogen Innovation Partnership (SHIP) provides a public-private framework for research collaboration, supported by a dedicated funding arrangement. The R&D programme has an allocation of ₹400 crore. As of June 2026, an initial research roadmap worth ₹113 crore was supporting approved projects involving hydrogen production, storage and safety technologies.
The Government has also allocated ₹100 crore for start-ups developing green hydrogen technologies. The first nine start-ups have been approved for support amounting to ₹22 crore.
Skill development is another important component. The mission aims to generate more than six lakh employment opportunities across the green hydrogen value chain by 2030.
Table 3: Skill Development and Innovation Progress
| Indicator | Reported figure |
|---|---|
| Employment opportunities targeted by 2030 | More than 6 lakh |
| Candidates trained | 8,149 |
| Candidates certified | 7,248 |
| States and Union Territories covered | 14 |
| Start-up support allocation | ₹100 crore |
| Initial start-ups approved | 9 |
| Funding for approved start-ups | ₹22 crore |
Training covers renewable electricity supply to electrolysers, electrolysis, hydrogen storage and transportation, safety practices, and applications in steelmaking, mobility and refining.
Hydrogen.pdf
International Partnerships and State-Level Policies
India is developing international cooperation to strengthen technology access, investment, export opportunities and common certification standards.
According to the backgrounder, MNRE, directly or through the National Institute of Solar Energy, has signed memoranda of understanding, letters of intent or joint declarations with Australia, Finland, France, Germany, Saudi Arabia, the United Arab Emirates and Uzbekistan.
An additional renewable energy agreement has been signed with the Netherlands. India and the United States have also established a Hydrogen Task Force under the Strategic Clean Energy Partnership. Green hydrogen is among the focus areas of the India–US New and Emerging Renewable Energy Technology Action Platform.
Hydrogen.pdf
At the domestic level, six states have notified dedicated green hydrogen policies.
Table 4: State-Level Green Hydrogen Initiatives
| Policy status | States |
|---|---|
| Dedicated policies notified | Gujarat, Andhra Pradesh, Maharashtra, Uttar Pradesh, Rajasthan and West Bengal |
| Draft policies under preparation | Haryana, Punjab, Bihar and Kerala |
| Hydrogen integrated into existing industrial and renewable energy policy frameworks | The backgrounder identifies Himachal Pradesh, Madhya Pradesh, Odisha, Telangana and Chhattisgarh as examples |
The backgrounder states that seven states have integrated hydrogen into existing policy frameworks but names five states in its accompanying list. The distinction is retained here as presented in the source document.
Hydrogen.pdf
Bharat Renewable Energy Summit & Expo 2026: A Global Platform for Clean Energy
The Bharat Renewable Energy Summit & Expo 2026, taking place from 2 to 5 November at Bharat Mandapam in New Delhi, provides an international platform for discussing investment and technological cooperation in the renewable energy sector.
Organised under the theme Invest. Innovate. Inspire., the four-day event brings together participants from more than 130 countries, including over 40 ministers, policymakers, investors, financial institutions and industry leaders.
Nine countries and regional partners—Australia, Denmark, the European Union, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom—are participating as Country Partners. Thirteen Indian States and Union Territories are also showcasing their renewable energy capabilities.
The summit focuses on solar and wind energy, green hydrogen, energy storage, grid integration, domestic manufacturing, digitalisation and artificial intelligence applications in the energy sector.
More than 400 exhibitors are participating. The event is being held alongside the Ninth International Solar Alliance Assembly and the Fourth International Conference on Green Hydrogen, strengthening opportunities for international collaboration.
Hydrogen.pdf
Safety and Certification: Essential Conditions for Industry Growth
Although hydrogen offers significant opportunities, its storage and handling require specialised safety measures. It is the lightest chemical element and is highly flammable, making leak detection, appropriate storage systems and handling procedures particularly important.
India has notified standards for green hydrogen, green ammonia and green methanol. The Government is also supporting testing facilities and institutional infrastructure to improve safety and certification practices.
Credible verification is particularly important for international trade, where buyers need confidence that hydrogen products meet recognised emissions criteria.
Hydrogen.pdf
India’s Green Hydrogen Ambitions by 2030
The National Green Hydrogen Mission is expected to have significant implications for India’s energy security, industrial competitiveness and climate commitments.
Table 5: Expected Outcomes by 2030
| Target or expected outcome | Government projection |
|---|---|
| Annual green hydrogen production capacity | 5 MMT |
| Potential annual capacity with export demand | 10 MMT |
| Reduction in cumulative fossil fuel imports | Approximately ₹1 lakh crore |
| Investment expected to be mobilised | More than ₹8 lakh crore |
| Employment generation | More than 6 lakh jobs |
| Annual carbon dioxide emissions potentially avoided | Nearly 50 MMT |
| India’s net-zero emissions target | 2070 |
These are mission targets and projected outcomes, not completed achievements. Their realisation will depend on the expansion of renewable electricity, competitive production costs, infrastructure development, industrial demand, financing and successful commercial deployment.
Hydrogen.pdf
Conclusion: Building a Cleaner and More Self-Reliant Energy Economy
India’s green hydrogen programme is moving beyond policy announcements towards the development of production facilities, manufacturing capacity, industrial pilot projects, transport applications and international partnerships.
The National Green Hydrogen Mission aims to connect renewable energy generation with sectors that are difficult to decarbonise through conventional electrification. Its success will depend on affordable renewable electricity, efficient electrolysers, dependable storage and distribution systems, strong safety standards and a reliable market for green hydrogen.
The development of hydrogen hubs, the first indigenous hydrogen-powered train, new industrial pilots and growing offtake commitments indicate that the sector is entering an important implementation phase.
As India works towards its 2030 production ambitions and its broader commitment to net-zero emissions by 2070, green hydrogen could become an important component of the country’s energy security strategy, industrial transformation and international clean-energy trade.
Sources and References
- Press Information Bureau, Government of India – Green Hydrogen: Emerging Pillar of India’s Clean Energy Transition, 2 November 2026.
- Ministry of New and Renewable Energy – National Green Hydrogen Mission.
- Ministry of New and Renewable Energy – Green Hydrogen Certification Scheme of India.
- Bureau of Energy Efficiency – Green Hydrogen certification and verification framework.
- Government of India – Bharat Renewable Energy Summit & Expo 2026 backgrounder.
IBG NEWS | Energy, Environment and Technology Reporting
Editorial note: This article is an original journalistic presentation of the supplied PIB backgrounder. Financial allocations, production capacities, project milestones and 2030 outcomes are distinguished from targets and projections. The article does not treat projected benefits as already achieved.
