India's Green Hydrogen Roadmap

India's Green Hydrogen Roadmap

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Why in News

  • This editorial analyzes a recent piece from The Hindu BusinessLine about making green hydrogen practical for Indian industries.
  • It argues that achieving true energy security through the NGHM requires moving away from just large central projects.
  • The analysis stresses that leaders must focus on delivered costs rather than production expenses.
  • Policymakers need to support small modular electrolyzers for small businesses.
  • Integrating power sector reforms will make green hydrogen a bankable solution for hard-to-abate sectors like fertilizers and refining.

What is Green Hydrogen

  • Green hydrogen is a clean fuel created through the electrolysis of water using renewable energy sources like wind, solar, or hydropower.
  • An electrolyzer applies an electrical current to separate water (H2O) into oxygen (O2) and hydrogen (H2).
  • This fuel is called green because the entire creation cycle produces virtually zero greenhouse gas emissions, unlike fossil fuel methods.
  • The National Green Hydrogen Mission (NGHM), 2023 is a major initiative by the Ministry of New and Renewable Energy (MNRE) to make India a global hub.
  • By the year 2030, the mission aims to develop a production capacity of at least 5 Million Metric Tonnes (MMT) per annum.
  • It plans to add approximately 125 GW of new renewable energy capacity to run the extraction process.
  • The government hopes to attract over ₹8 lakh crore in total investments through this program.
  • This initiative is expected to create over 6 lakh jobs and cut fossil fuel imports by more than ₹1 lakh crore.
  • It will also help abate nearly 50 MMT of annual greenhouse gas emissions.
  • Hydrogen is classified into different colors based on its production method and carbon footprint.
  • Green hydrogen uses electrolysis with renewable energy and has zero carbon footprint.
  • Grey hydrogen relies on Steam Methane Reforming (SMR) using natural gas and leaves a high carbon footprint.
  • Blue hydrogen uses SMR + Carbon Capture & Storage with natural gas, resulting in a low carbon footprint because carbon is captured.
  • Brown hydrogen uses gasification with coal, creating a very high carbon footprint.

What are the Key Applications of Green Hydrogen

  • Steel production is one of India's most carbon-heavy industries, traditionally using coking coal in blast furnaces.
  • Green hydrogen replaces coking coal in the Direct Reduced Iron (DRI) process, leaving water vapor as the only emission.
  • The Ministry of Steel has received Rs. 455 crore to run pilot projects for green hydrogen in steel making up to FY 2029-30 under the NGHM.
  • Private companies like Tata Steel and Jindal Steel Works (JSW) are actively testing Hydrogen-DRI plants.
  • Tata Steel successfully injected 6Kg/(ton of hot metal) of hydrogen, cutting 7-10% of CO2 emissions per tonne of crude steel.
  • Jindal Steel Works (JSW) built a carbon capture and storage facility with a 100 tonnes per day (TPD) capacity at its DRI plant in Dolvi (Maharashtra).
  • India is the 2nd-largest consumer and 3rd-largest producer of fertilizers across the world.
  • Producing Ammonia (NH3) drives heavy natural gas imports, but green hydrogen combines with nitrogen to make green ammonia for fertilizers.
  • The Solar Energy Corporation of India (SECI) signed 10-year agreements to supply 7,24,000 tonnes of green ammonia every year to 13 fertilizer plants.
  • This step will save India roughly $2.5 billion in foreign currency over the next ten years.
  • Refineries use massive amounts of hydrogen to remove sulfur from crude oil and upgrade heavy crude through desulfurization.
  • Indian Oil Corporation (IOCL) is opening India's first green hydrogen plant at its Panipat Refinery.
  • This plant replaces grey hydrogen to significantly lower the refinery's Scope 1 emissions.
  • SECI is also launching refinery projects with a capacity of 30,000 tonnes per year.
  • The shipping sector needs clean bunker fuels, and green hydrogen derivatives like green methanol offer a great alternative.
  • The government designated three major facilities, Deendayal Port (Kandla), V.O. Chidambaranar Port (Tuticorin), and Paradip Port (Odisha), as Green Hydrogen Hubs.
  • These hubs will store, distribute, and fuel ships along major global maritime trade routes.
  • Battery electric vehicles struggle with heavy trucks, but Hydrogen Fuel Cells offer long ranges and fast refueling times.
  • Five pilot projects will deploy 37 hydrogen-fueled buses and trucks across 10 diverse topographic routes.
  • These are backed by 9 dedicated hydrogen refueling stations to test Fuel Cell Electric Vehicles (FCEVs).
  • Excess solar and wind energy can run electrolyzers during peak hours to balance the power grid.
  • The generated hydrogen is stored in tanks or salt caverns and turned back into electricity at night.
  • NTPC Limited is building a massive Green Hydrogen Hub at Pudimadaka, Andhra Pradesh for grid-scale energy storage.
  • Hydrogen can also be turned into Sustainable Aviation Fuel (SAF) by making synthetic hydrocarbons.
  • An English company named OXCCU raised $22.7 million to make sustainable aviation fuel more affordable using a special catalyst.

Challenges

  • The biggest obstacle is that green hydrogen is much more expensive than grey hydrogen made from natural gas.
  • As of 2026, green hydrogen costs between ₹397-₹560 per kg, while fossil-fuel grey hydrogen costs ₹150-₹200 per kg.
  • Without help from the SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme, industries will not switch voluntarily.
  • Making electrolyzer stacks requires specialized materials like iridium or platinum and high-precision engineering.
  • India depends heavily on imported components, and building a local supply chain is a long-term research challenge.
  • Producing 1 kg of hydrogen through electrolysis requires 9 to 11 liters of high-purity demineralized water.
  • Many potential production zones in Rajasthan and Gujarat already suffer from severe water shortages.
  • Plants must invest in costly water treatment like desalination to avoid taking water from local residents.
  • Hydrogen is extremely light, highly flammable, and can embrittle steel pipelines, making transport very difficult.
  • Existing natural gas pipelines cannot carry pure hydrogen without expensive retrofits.
  • Long-distance transport requires expensive high-pressure tube trailers or cryogenic liquid tankers.
  • National safety standards for handling a high-pressure hydrogen economy are still in early development.
  • Ports like Kandla and Tuticorin must build special safety protocols before functioning as massive hubs.
  • India faces fierce competition from countries like Australia, Chile, and Middle Eastern nations that heavily subsidize hydrogen.
  • India spends only 0.6% of its GDP on R&D, lagging behind the US (3.4%), China (2.6%), and South Korea (5.3%).
  • This low research spending slows down innovative technology adoption across domestic industries.

Way Forward

  • Expanding the SIGHT program to include small modular electrolyzers from 10 kW to 2 MW will help smaller industrial units.
  • Increasing production-linked incentives (PLI) will bridge the cost gap until economies of scale arrive.
  • Building Hydrogen Valley Innovation Clusters (HVIC) by co-locating production near refineries and steel plants cuts midstream transport costs by 70-85%.
  • Using hubs like Kandla (Deendayal Port) and Paradip will link production directly to industrial buyers.
  • The government should introduce Green Hydrogen Purchase Obligations (GHPO) for hard-to-abate sectors to create bankable demand.
  • Promoting Hybrid Renewable Energy Parks combining solar, wind, and battery storage ensures consistent power for electrolyzers.
  • Waiving inter-state transmission charges for 25 years helps lower electricity costs for green projects.
  • Intensifying R&D through the ₹100 crore Call for Proposals will help manufacture local electrolyzers.
  • The India-US critical minerals pact will help localize supply chains and reduce reliance on imports.
  • Initiating pilot projects to blend hydrogen into existing natural gas pipelines solves the last-mile transport problem.
  • Fast-tracking the National Hydrogen Safety Protocol will ensure uniform safety standards across all refueling routes.
  • The NGHM skilling component and new Centres of Excellence (CoEs) will prepare a skilled workforce.
  • The Indian Carbon Market (ICM) will let companies monetize emission reductions, naturally narrowing the cost gap between green and grey hydrogen.