Emerging Opportunities for a Clean Energy Future
India’s energy landscape is undergoing a structural transformation. Rising industrial demand, increasing fossil fuel imports, and the urgency to meet climate commitments are pushing our country to explore cleaner and more sustainable alternatives. In this transition, green hydrogen is emerging not just as an alternative fuel but as a strategic opportunity to reshape India’s energy economy.
From decarbonizing heavy industries to positioning India as a global export hub, green hydrogen is gaining momentum across policy, technology, and investment circles. As global economies accelerate toward net-zero targets, India’s early push into green hydrogen could unlock long-term economic and environmental gains.
India’s Shift Towards Energy Independence
India’s interest in green hydrogen is driven by multiple structural & environmental factors:
- Energy security: India imports a large portion of its energy requirements. Green hydrogen offers a pathway to reduce dependence on fossil fuel imports.
- Industrial decarbonization: Sectors like steel, refining, and fertilizers are hard to electrify and account for high emissions. Hydrogen can serve as a viable clean alternative.
- Renewable energy utilization: India has rapidly expanded its solar and wind capacity. Green hydrogen can help store and utilize excess renewable energy efficiently.
Together, these factors position green hydrogen as a critical pillar in India’s long-term energy independence strategy.
Policy Momentum for India’s Hydrogen Ambitions
India’s green hydrogen ambitions are being actively shaped by an evolving policy framework, driven by institutions such as the Ministry of New and Renewable Energy and NITI Aayog. These bodies are not only setting strategic direction but also creating an enabling ecosystem to accelerate large-scale adoption across industries.
At the center of this ecosystem is the National Green Hydrogen Mission, which provides a structured roadmap to position India as a global hub for the production, utilization, and export of green hydrogen. The mission reflects a long-term vision that integrates energy security, industrial decarbonization, and economic growth. According to official projections, green hydrogen could contribute up to 46% of India’s total hydrogen demand by 2030, indicating a significant shift from conventional fossil-based hydrogen.
Technologies Shape the Hydrogen Future
Technological advancements are at the core of making green hydrogen commercially viable and scalable in India. As the country accelerates its hydrogen ambitions, green innovations are not only improving production efficiency but also addressing critical challenges related to storage, transport, and end-use applications.
Electrolyzer Technologies Drive Production Efficiency
Electrolyzers are the backbone of green hydrogen production, and continuous improvements in this segment are helping reduce costs and enhance performance:
- Alkaline Electrolyzers: These are the most widely used systems known for their reliability and relatively lower capital costs. They use a liquid electrolyte such as Potassium Hydroxide or Sodium Hydroxide, and a porous diaphragm to separate electrodes, which prevents gas mixing. Water is split at the cathode, forming hydrogen and hydroxide ions travel through the electrolyte/diaphragm to the anode to form oxygen. Their maturity makes them suitable for large-scale deployment, especially in early-stage projects.
- Proton Exchange Membrane (PEM) Electrolyzers: The PEM technology uses a solid, specialty-plastic membrane as the electrolyte, which allows the hydrogen protons to pass through it to the other side, while blocking the oxygen and electrons. This process offers higher efficiency, faster response times, and better compatibility with intermittent renewable energy sources. Although currently more expensive, ongoing advancements are expected to bring down costs significantly.
India’s push toward domestic electrolyzer manufacturing is also expected to play a crucial role in reducing import dependency and improving long-term cost competitiveness.
Address the Logistics Challenge
One of the biggest hurdles in scaling green hydrogen is its storage and transportation. Hydrogen is a low-density gas, making it difficult to store and move efficiently. To overcome this:
- Technologies such as high-pressure compression and liquefaction are being refined
- Dedicated pipeline infrastructure is being explored for industrial clusters
- Decentralized production models are also emerging to minimize transport requirements
Hydrogen Derivatives
To simplify storage and transportation, hydrogen is being converted into derivatives such as ammonia and methanol. In a significant step, India has introduced standards for green ammonia and methanol, which will:
- Facilitate safer storage and long-distance transport
- Enable integration into existing industrial and shipping infrastructure
- Accelerate international trade of hydrogen-based fuels
Latest Developments Accelerate India’s Hydrogen Shift
India’s green hydrogen ecosystem is rapidly transitioning from policy intent to on-ground implementation. A series of strategic collaborations, pilot projects, and large-scale investments highlight the growing momentum across both public and private sectors.
- GAIL India Ltd partnered with Accelera by Cummins under the Ministry of Petroleum and Natural Gas to advance hydrogen and energy transition technologies. As part of this initiative, the company commissioned a 10MW green hydrogen plant in Vijaipur, Madhya Pradesh in February 2025, marking a significant step toward commercial-scale deployment.
- Sembcorp and Bharat Petroleum entered into a joint venture with to develop green hydrogen and renewable energy projects across India. With 6 GW of renewable assets in India, Sembcorp is well-positioned to enable large-scale, low-cost green hydrogen production.
- In July 2025, L&T Energy GreenTech, announced the establishment of India’s largest green hydrogen plant at Indian Oil Corporation’s Panipat refinery. Later in April 2026, L&T Energy GreenTech signed an agreement with Japanese company ITOCHU Corp for the long-term supply of 300,000 tons of green ammonia per annum to be used in the Japanese shipping industry.
- Construction on India’s largest green ammonia projecthas officially begun at Kakinada, Andhra Pradesh, with a near-2GW electrolyser complex aimed at European export markets. Led by AM Green, this project is designed to produce up to 1.5 million tonnes per year of green ammonia by mid-2027.
- Public sector giant NTPC is investing INR 85 lakh crore to set up a state-of-the-art Green Hydrogen Hub Project near Visakhapatnam in Andhra Pradesh. This is a part of the government’s big push for clean energy with a capacity of producing 1,500 TPD Green Hydrogen and 7,500 TPD of its derivatives.
- Beyond conventional electrolysis, India is also exploring more sustainable production methods. Researchers at the Indian Institute of Science have demonstrated the potential to produce green hydrogen from bio-waste. In the first step, biomass is converted into syngas – a hydrogen-rich fuel gas mixture – in a reactor using oxygen and steam. In the second step, pure hydrogen is generated from syngas using an indigenously developed low-pressure gas separation unit.
These developments collectively demonstrate a multi-stakeholder approach, where public sector enterprises, private corporations, global partners, and research institutions are working in tandem. The shift from isolated pilot projects to integrated hydrogen ecosystems indicates that India is steadily building the foundation for a scalable and competitive green hydrogen industry. Overall, India’s long-term outlook in green hydrogen is highly promising
About the Author
Shammi Thakur is a Research Director at MarkNtel Advisors with more than 15 years of experience in strategic market intelligence, industry forecasting, and competitive analytics.
