Green hydrogen is emerging as a pillar of India's clean‑energy transition. It is produced by splitting water using renewable electricity. It can help cut emissions in fertilizer manufacturing, petroleum refining, iron and steel production, heavy road transport and shipping. The National Green Hydrogen Mission (NGHM) supports domestic manufacturing, production, assured demand and reliable certification. From green ammonia auctions to India’s first hydrogen train, early projects point to a reliable pathway.
Why green hydrogen
Hydrogen is an energy carrier that stores energy and makes it available for various uses. In a fuel cell it reacts with oxygen to generate electricity, leaving only water and heat as by‑products and no pollutant compounds or greenhouse gases. Although pure hydrogen is not abundant in nature, it can be extracted from compounds such as water or natural gas. Hence its environmental impact depends on how it is made. Conventional methods rely on fossil fuels and emit carbon.
Using renewable electricity from solar and wind to produce hydrogen can greatly reduce those carbon emissions. Hydrogen made by electrolysing water with renewable power is called green hydrogen. Unlike fossil‑fuel‑based methods, this process emits very little carbon. India’s abundant solar and wind resources make domestic production feasible, diversifying energy sources and strengthening energy security. It also supports India’s net‑zero target for 2070.
Green hydrogen is most critical in sectors where emission cuts are hard. These include high‑temperature heat demand, chemical processes and areas with few fossil‑fuel alternatives. Sectors where reduction is difficult are fertilizer, petroleum refining, iron and steel, heavy road transport and shipping. Fertiliser and refining plants already use hydrogen, so green hydrogen can replace fossil‑fuel‑based supplies. It can also aid low‑emission steel making, specific transport uses and energy storage, especially where direct electrification is impractical.
For India, large‑scale adoption can lower dependence on imported fossil fuels, cushioning the impact of global fuel price volatility. It can open new manufacturing opportunities, attract investment, create jobs and boost exports. Building capabilities across the whole value chain will strengthen domestic supply chains and spur industrial innovation. Thus green hydrogen supports self‑reliance, sustainable industrial growth and a low‑carbon future.
What makes hydrogen “green”
When used, hydrogen releases no carbon dioxide, so its climate impact depends on how it is produced. In August 2023 the Ministry of New and Renewable Energy (MNRE) notified India’s green hydrogen standard. If emissions measured over a 12‑month average are ≤ 2 kg CO₂ per kg of hydrogen on a well‑to‑gate basis, the hydrogen qualifies as green. This makes India one of the first countries to formally define green hydrogen.
Creative mind, catalytic science, empowering technologies
ESTIC‑2026, India’s emerging science, technology and innovation conclave, is being held from 27‑29 October 2026 at Bharat Mandap, New Delhi. Organized by the Council of Scientific and Industrial Research (CSIR), the conference is themed “Creative mind, catalytic science, empowering technologies”. It showcases emerging frontiers in S&T, including energy technologies such as green hydrogen. The three‑day event features full sessions, technical discussions and exhibitions across 12 thematic areas and promotes strategic cooperation for the “Developing India 2047” vision. Read more on the agenda: ESTIC 2026
How green hydrogen is produced?
Green hydrogen is mainly produced by electro‑splitting water (H₂O). In electrolysis electricity is used to break the compound into simpler substances. Here, renewable electricity splits water into hydrogen (H₂) and oxygen (O₂) with minimal emissions.
2H₂O → 2H₂ + O₂
The key equipment is the electrolyser. It has two electrodes – a cathode and an anode – connected to a power source and immersed in an electrolyte that conducts ions. A diaphragm keeps the gases separate while allowing ions to pass. When current flows, hydrogen forms at the cathode and oxygen at the anode; the gases are then collected separately. Thus an electrolyser converts renewable electricity and water into low‑emission fuel for industry, transport and other uses.
Did you know? Water is purified before electrolysis because impurities can damage the cell and shorten its life. According to MNRE, about nine litres of de‑mineralised water are needed per kilogram of hydrogen. After electrolysis the hydrogen is dried and purified before compression. India’s “Green Hydrogen Standard” accounts for emissions from all these stages.
Applications of green hydrogen
Fertiliser: Ammonia and urea – the basis of nitrogen fertilisers – are made from hydrogen and nitrogen. Most of this hydrogen now comes from natural gas. Green hydrogen can replace it and produce green ammonia with far lower emissions.
Petroleum refineries: Refineries use hydrogen to remove sulphur from petrol and diesel, ensuring cleaner burning fuels. They also use it to upgrade heavy oil into diesel, aviation turbine fuel and naphtha for road, aviation and industrial use. Since most refinery hydrogen is fossil‑fuel‑derived, a green supply can cut refining emissions.
Steel: Conventional steelmaking uses coal to remove oxygen from iron ore, emitting CO₂. In direct‑reduced iron routes, green hydrogen can perform the reduction, releasing water vapour instead of CO₂ in the reduction stage.
City‑gas network: Subject to safety standards and infrastructure compatibility, green hydrogen can be blended in limited proportions with natural gas. This allows existing gas pipelines to deliver a hydrogen‑natural‑gas mix to homes, businesses and industry, reducing fossil‑fuel consumption and associated emissions.
Road and rail transport: Fuel‑cell vehicles convert onboard hydrogen to electricity that drives electric motors. Their only emission at the point of use is water vapour. This suits buses, trucks and trains that need long range and quick refuelling.
Did you know?
India’s first indigenous hydrogen‑powered train was inaugurated on 17 July 2026 on the Jind–Sonepat section. The 10‑coach train can carry about 2,600 passengers. A facility at Jind stores roughly 3,000 kg of hydrogen. The train emits only water vapour and heat. Click to read more.
Shipping: Green hydrogen can be converted into green ammonia or green methanol for use as ship fuel. These can replace conventional marine fuels on long voyages, depending on engine compatibility, safety requirements and port infrastructure.
Exports: India can supply green hydrogen and its derivatives – such as green ammonia and green methanol – to countries seeking low‑emission fuels. Renewable energy resources in India can support this supply, opening industrial opportunities and strengthening India’s position in the low‑carbon fuel market. Click to read: Potential of green hydrogen production in India
Aligning government approach
The government has adopted an integrated strategy to promote green hydrogen across sectors, coordinating central and state ministries, departments, agencies and institutions. Each ministry has a defined role. For example, the Ministry of Petroleum and Natural Gas promotes its use in refineries and city‑gas distribution; the Ministry of Chemicals and Fertilisers encourages indigenous green‑ammonia‑based fertilisers; the Ministry of Road Transport and Highways enables its use in transport through regulations, standards and codes; the Ministry of Steel promotes its use in steelmaking; and the Ministry of External Affairs facilitates international cooperation.
India’s green hydrogen policy framework
NGHM: Mission for the whole ecosystem
MNRE is implementing the NGHM to make India a global hub for green hydrogen and its derivatives. The central cabinet approved the mission in January 2023 with a budget of ₹19,744 crore. The goal is to achieve at least 5 million metric tonnes (MMT) of annual production capacity by 2030, which could rise to 10 MMT per year based on export demand. The main components are:
SGHT: Support for both market sides
The Strategic Interventions for Green Hydrogen Transition (SGHT) programme, a flagship of NGHM, has a budget of ₹17,490 crore for 2029‑30. It provides incentives for two objectives – domestic electrolyser manufacturing and green hydrogen production – strengthening the country’s capabilities and accelerating production pace.
Key progress
15 companies received incentives for a combined 3,000 MW electrolyser manufacturing capacity, reducing dependence on imported supply chains.
By February 2026, roughly 8,000 tonnes of green hydrogen capacity had been commissioned annually.
Incentives have been granted for an annual production capacity of 8,62,000 tonnes of green hydrogen.
Pilot projects
NGHM backs pilot projects that replace fossil fuels and feedstocks in sectors where emission cuts are especially tough, such as steel, heavy‑duty mobility and shipping. These pilots identify technical, regulatory and infrastructure gaps, test supply‑chain and technology integration, and generate results that will guide large‑scale commercial deployment and policy support. The mission has allocated ₹455 crore for low‑carbon steel by 2029‑30, ₹496 crore for mobility by 2025‑26 and ₹115 crore for shipping.
Key progress
Five pilot projects in the steel sector have been approved, with ₹84 crore earmarked to test 100 % hydrogen use.
Under 12 projects, 70 hydrogen vehicles – 27 buses and 43 trucks – will be deployed, including fuel‑cell electric vehicles (FCEV) and hydrogen internal‑combustion engine (H₂‑ICE) units.
The projects include 16 hydrogen refuelling stations across 21 routes, with a financial outlay of ₹41.58 crore.
V.O. Chidambaranar Port Authority approved a pilot to develop bunkering and refuelling facilities for green methanol, costing ₹38.12 crore, of which ₹35 crore is a MNRE grant.
Green hydrogen hubs and Hydrogen Valley Innovation Clusters (HVIC)
Transporting hydrogen is challenging. To address this, the mission promotes “hubs” and HVICs that integrate production, consumption and infrastructure, improving project viability and enabling scale‑up. Projects in designated hubs can leverage central and state plans. A budget of ₹400 crore has been set for hubs and related projects up to 2025‑26, aimed at attracting green investment and accelerating innovation.
Key progress
MNRE has recognised Deendayal Port (Kandla, Gujarat), V.O. Chidambaranar Port (Tuticorin, Tamil Nadu) and Paradip Port (Odisha) as hubs.
In July 2025, a domestically‑built 1 MW green hydrogen plant was commissioned at Kandla Port.
Four HVICs have been approved: Jodhpur, Odisha, Pune and Kerala.
Policy framework development
The mission adopts a whole‑of‑government approach to make green hydrogen affordable, coordinating central and state departments. Key measures include waiving inter‑state transmission charges and enabling renewable energy banking, with time‑bound open‑access and grid‑connectivity provisions. The government will coordinate planning for renewable capacity, transmission, banking and storage. Solar parks, manufacturing zones and special economic zones (SEZs) can be expanded to host hydrogen facilities. International green finance, green bonds and innovative funding options will also be explored.
Key progress
Green hydrogen and green ammonia plants slated to start by 31 December 2030 will receive a 25‑year exemption from inter‑state transmission system (ISTS) charges, reducing electricity costs.
The “Green Energy Corridor” scheme supports lines and substations that convey renewable power to the grid, improving connectivity between generation and consumption points. Click here to read more.
Under Section 26 of the SEZ Act 2005, fee concessions are extended to units that install and operate renewable‑energy equipment solely for their own consumption, lowering the cost of setting up renewable facilities within SEZs.
Plants that produce green hydrogen or green ammonia via water electrolysis using renewable power are exempted from the Environmental Impact Assessment Notification 2006, streamlining approval for eligible projects.
Renewable‑energy plants located in SEZs or export‑oriented units (EOUs) that supply electricity exclusively to green hydrogen production or its derivatives qualify for exemptions under the Approved List of Models and Manufacturers (ALMM) and Revised List of Models and Manufacturers (RLMM), providing greater flexibility in sourcing equipment, provided they meet the exemption criteria.
Under the Green Hydrogen and Green Ammonia Policy, “open access” is granted within 15 days, and surplus renewable electricity can be banked for up to 30 days as per applicable rules. Open access lets producers purchase renewable power from sources other than their local distribution company, while banking allows excess electricity to be stored as a credit for later use.
Rules and Standards
The mission is drafting rules and standards aligned with industry needs, aimed at promoting sector growth and harmonising with international benchmarks.
Key Progress
India's 'Green Hydrogen Standard' has been notified. Based on a 12‑month average, it caps emissions at 2 kg CO₂ per kg of hydrogen at the well‑to‑gate level, establishing a common benchmark.
Guidelines have been issued to fund testing facilities, infrastructure and institutional support for the standards.
Standards for green ammonia and green methanol have been notified, setting emission limits and eligibility criteria to aid their production and trade.
MNRE launched the 'Green Hydrogen Certification Scheme of India' in April 2025. The Bureau of Energy Efficiency (BEE) accredits agencies for monitoring, verification and certification.
A dedicated portal was launched in June 2026 to ensure transparent certification and compliance, helping Indian producers compete globally with confidence.
Research and Development (R&D)
The mission promotes R&D to make green hydrogen more affordable, efficient, safe and reliable. The Strategic Hydrogen Innovation Partnership (SHIP) is a public‑private framework with a dedicated R&D fund. In March 2024, R&D guidelines were issued with a budget of ₹400 crore. By June 2026, an initial ₹113 crore roadmap is supporting approved projects on hydrogen production, storage and safety technologies.
Skill Development
A coordinated skill‑development drive is underway. The mission aims to create over 6 lakh jobs across the value chain by 2030. To date, 8,149 candidates in 14 states and UTs have been trained for hydrogen‑related qualifications and 7,248 have been certified. Training covers renewable energy for electrolyzers, electro‑lysis, storage, transport, safety standards and end‑use sectors such as steel, mobility and refining. To spur innovation, ₹100 crore has been allocated to startups working on green hydrogen technologies; nine startups have been approved with total funding of ₹22 crore.
International Cooperation
The mission encourages partnerships to develop technology, raise investment, ready export markets and harmonise standards.
Key Progress
MNRE has directly or through the National Solar Energy Institute signed MoUs, letters of intent or joint declarations with partner countries Australia, Finland, France, Germany, Saudi Arabia, United Arab Emirates and Uzbekistan.
A memorandum of understanding on renewable energy has been signed with the Netherlands.
Under a strategic clean‑energy partnership, an India‑USA Hydrogen Task Force has been formed.
Green hydrogen is a flagship area of the India‑USA New and Emerging Renewable Energy Technology Platform (RETP).
State‑Level Initiatives
Six states – Gujarat, Andhra Pradesh, Maharashtra, Uttar Pradesh, Rajasthan and West Bengal – have notified their own specific policies for green hydrogen as complements to the National Green Hydrogen Mission.
Four more states – Haryana, Punjab, Bihar and Kerala – are finalising draft policies for green hydrogen.
Seven states – Himachal Pradesh, Madhya Pradesh, Odisha, Telangana and Chhattisgarh – have incorporated hydrogen into their existing industrial and renewable‑energy policy frameworks.
Way Forward
The National Green Hydrogen Mission is a crucial step toward a clean, self‑reliant and globally competitive energy economy. India aims to develop an annual production capacity of 5 million metric tonnes (MMT) of green hydrogen by 2030, which could cut fossil‑fuel imports and strengthen long‑term energy security. The mission is expected to reduce total fossil‑fuel imports by about ₹1 lakh crore by 2030.
Beyond energy security, the mission seeks to generate new industrial growth, investment and employment opportunities, attracting over ₹8 lakh crore of investment and creating more than 6 lakh jobs in manufacturing, infrastructure, research and project development. Achieving the targeted green‑hydrogen output could also avert roughly 50 MMT of CO₂ emissions annually. Through these efforts, the government aims to rapidly cut carbon emissions in the industrial sector, boost domestic manufacturing and position India as a global hub for green‑hydrogen production, use and export. This contributes to India’s vision of a ‘Developed India’ by 2047 and its commitment to net‑zero emissions by 2070.
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Click here to view the PDF
PIB Research
पीके/केसी/आरटी/एमपी
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