INDIA ADDA – Perspectives On India

IBEF works with a network of stakeholders - domestic and international - to promote Brand India.



Dikshu C. Kukreja
Dikshu C. Kukreja
Mr. V. Raman Kumar
Mr. V. Raman Kumar
Ms. Chandra Ganjoo
Ms. Chandra Ganjoo
Sanjay Bhatia
Sanjay Bhatia
Aprameya Radhakrishna
Aprameya Radhakrishna
Colin Shah
Colin Shah
Shri P.R. Aqeel Ahmed
Shri P.R. Aqeel Ahmed
Dr. Vidya Yeravdekar
Dr. Vidya Yeravdekar
Alok Kirloskar
Alok Kirloskar
Pragati Khare
Pragati Khare
Devang Mody
Devang Mody
Vinay Kalantri
Vinay Kalantri

National Hydrogen Mission: Step Towards Robust Energy Security

National Hydrogen Mission: Step Towards Robust Energy Security

India's energy landscape is at a crucial turning point, and green hydrogen will have an essential role in making the country self-sufficient and energy independent. As an energy carrier, hydrogen is becoming crucial for decarbonizing hard-to-abate sectors. Carbon-free hydrogen will enable substantial decarbonization in several industries, including those that produce iron ore and steel, fertilizers, methanol, refining, and marine shipping, which all emit significant volumes of carbon dioxide (CO2). Moreover, for other high-emitting sectors, such as heavy-duty trucking and aviation, hydrogen is one of the key solutions being investigated with an outlook to be the preferred solution for several applications. With the growing urgency for decarbonization and declining prices of hydrogen, the global demand for hydrogen could grow by almost 400% by 2050, fueled by industry and transportation. Presently, India spends more than US$ 160 billion in foreign exchange every year for energy imports, which are estimated to double in the next 15 years without remedial action. Prime Minister Mr. Narendra Modi announced the National Hydrogen Mission on the 75th Independence Day to provide a comprehensive action plan for establishing a Green Hydrogen economy making India a hub for the production and export of green hydrogen. The expected outcomes of the mission by 2030 are as follows:

  • By 2030, domestic consumption will have the largest electrolysis (green hydrogen generation) capacity in the world of over 60 GW/5 million tons, with India accomplishing its target of 500 GW of renewable energy.
  • 15-20 million tons of green steel will be produced worldwide by 2030, a ground-breaking endeavor to make green steel a global standard.
  • By 2028, the largest electrolyser in the world with an annual manufacturing capacity of 25 GW, delivering affordable prices to the world.
  • By 2030, India will have the largest green ammonia production in the world. Up to 100 GW of green hydrogen may be needed to assist India’s allies in their efforts to decarbonize.
  • By 2030, an investment of US$1 billion in hydrogen research and development will enable revolutionary innovations for the entire world at scale and at the appropriate pace.

Types of Hydrogen
Based on the sources and production, hydrogen can be classified into various colors:

  • Black / Brown / Grey hydrogen
    It is produced either by coal or lignite gasification (brown or black) or through the steam methane reformation (SMR) of methane (grey) or natural gas. Most of these have a high carbon footprint.
  • Blue hydrogen
    It is created by gasifying coal or natural gas with technologies like carbon capture storage (CCS) or carbon capture use (CCU) to reduce carbon emissions.
  • Green hydrogen
    It is generated by electrolyzing water using the power produced from renewable sources. The carbon intensity is determined by how carbon neutral the power source, that is utilized for generating the green hydrogen. In other words, the more renewable energy source is used in the electrical fuel mix, the “greener” the hydrogen is produced. To produce green hydrogen, two commercially accessible technologies are alkaline and polymer electrolyte membrane (PEM) electrolysers.

National Hydrogen Mission
The National Hydrogen Mission India launched by Prime Minister of India, Mr. Narendra Modi on 75th Independence Day (15th August 2021), states that, by 2030, India will increase its capacity to produce green hydrogen by at least 5 million tons (MT) annually with an associated capacity addition of 125 gigawatts (GW) of renewable energy. This would entail total investments of US$ 97.62 billion (Rs 8 lakh crore) and is anticipated to generate 6 lakh jobs.  Additionally, it will result in a cumulative decrease of over US$ 12.20 billion (Rs 1 lakh crore) in fossil fuel imports as well as a reduction of nearly 50 MT of greenhouse gas emissions annually.

Moreover, the initial outlay was US$ 2.4 billion (Rs 19,744 crores), which includes US$ 2.1 billion (Rs 17,490 crores) towards the Strategic Interventions for Green Hydrogen Transition Program (SIGHT), US$ 178.9 million (Rs 1,466 crores) for pilot projects, US$ 48.8 (Rs 400 crores) for Research and Development (R&D) and US$ 47.34 million (Rs 388 crores) for other mission components. The Ministry of New and Renewable Energy (MNRE) will formulate the guidelines for the scheme for implementation of respective components.

Mission’s Sub-Components

  • SIGHT Programme: The Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) incentives 2 distinct financial incentive mechanisms, targeting domestic manufacturing of electrolysers and the production of green hydrogen.
  • Pilot Projects: It will support pilot projects in emerging end-use sectors and production pathways. Regions that can sustain large-scale hydrogen generation and/or use will be found and developed as Green Hydrogen Hubs.
  • R&D Projects: The Mission will assist the Strategic Hydrogen Innovation Partnership (SHIP), a public-private partnership structure for research and development. The objectives, deadlines, and magnitude of R&D initiatives shall be appropriate for creating globally competitive technology.
  • Skill Development: Under the Mission, a well-coordinated skill-development program will also be implemented.
  • Green Hydrogen/Green Ammonia Policy: According to the policy, if the production facility is commissioned before June 2025, the government will establish manufacturing zones for production, prioritize connectivity to the ISTS (Inter-State Transmission System), and provide free transmission for 25 years. (i.e., the manufacturers of green hydrogen/ammonia would be waived off from the inter-state transmission charges for 25 years). Moreover, a single portal for carrying out all the activities including statutory clearances in a time-bound manner will be set up by MNRE to ensure ease of doing business. Furthermore, the manufacturers can avail of many more benefits like storage, Renewable Purchase Obligation (RPO), concessional prices, etc.

Hydrogen Economy Benefits

  • Making India the top global producer and supplier of green hydrogen
  • Providing green hydrogen and its derivatives with export opportunities
  • Less reliance on imported fossil fuels and raw materials
  • Improvement of domestic manufacturing capacity
  • Generating commercial and investment prospects for the sector
  • Providing chances for economic growth and employment
  • Supporting R&D initiatives

Mission Implementation Timeline

Energy Security

Energy security refers to ensuring the uninterrupted availability of energy sources at an affordable price. There are two types of energy security:

  • Long-term energy security primarily involves making timely investments to supply energy in accordance with environmental needs and prevailing economic factors.
  • Short-term energy security is the ability of the energy system to quickly respond to unexpected changes in the supply-demand balance.

 Nations can achieve energy security through a range of robust energy security strategies:

  • Exploiting own resources to achieve as close to full self-sufficiency as possible
    Utilizing resources in one's possession to come as near to complete self-sufficiency as possible. With a population of just over 5 million, Norway can utilize its offshore oil and gas fields and hydroelectric power (HEP) resources to supply 96% of its energy demands. It has an excess of energy that it exports to its neighboring countries, such as through an extensive undersea gas pipeline to the UK.
  • Supplementing own energy resources with imports from reliable and consistent supplier nations
    The United States and Canada jointly supply power in various regions and are part of the largest integrated energy network in the world. Canada is a net exporter of gas and oil to the United States and an importer of coal from the United States.
  • Importing energy from a wide range of suppliers.
    Japan imports Liquid Natural Gas (LNG) from more than five nations, ranging from Indonesia (51%) to the USA (3%), as it has comparatively limited energy resources of its own.
  • Switching supply - so there is less dependency on imports
    In the past 20 years, the United States has dramatically decreased its reliance on oil and gas imports from the Middle East and South America by tapping into its own domestic deep onshore shale gas through the controversial practice of hydraulic fracturing, or "fracking".
  • Reducing domestic demand for energy
    Increasing home insulation, promoting more cycling instead of driving, and subsidizing solar panels for homes and businesses rooftops can all help with efforts to lessen reliance on foreign energy sources.

Role of Hydrogen in various Sectors

The future of hydrogen energy usage across various high-carbon emitting sectors is as follows:

  • Green Steel: In the next ten years, it is anticipated that green hydrogen-based steel will be cost-competitive due to the declining costs of renewable energy and electrolysers. Market restrictions on carbon-intensive steel and the provision of carbon credits are projected to further increase the sustainability of steel made from green hydrogen. Seven out of the ten largest steel-producing nations have declared the launch of green steel projects. Major steel makers have announced their entry into this market.  Sweden leads the way in terms of the concentration of investments in Europe.  Swedish green steel start-up H2GS AB just raised US$ 105 million intending to reach 5 million tonnes of yearly output by 2030.  Tata Steel, an Indian company, has stated that it will use green steel in its UK facilities. 
  • Transport:  Hydrogen fuel is used to power fuel cell electric cars (FCEVs), which emit no hazardous gases. Due to its limited operating range, battery electric vehicles (BEVs) may be appropriate for the light passenger car category. In the upcoming years, this advantage of hydrogen fuel cell electric cars is projected to become cost-competitive for heavy-duty vehicles with longer trip ranges, such as buses, lorries, and other commercial vehicles. While lithium and cobalt are imported as raw materials for lithium-ion batteries, which are used in battery electric vehicles (BEVs), the supply chain for hydrogen fuel cells may be completely domesticated, making India Aatmanirbhar in the clean transportation sector.
  • Shipping: One of the major industries that are predicted to propel future Green Hydrogen trade and demand is shipping and port operations. By using green hydrogens or their derivatives, such as green ammonia and green methanol, as fuel for propulsion and other operations, maritime transportation and ports have a significant potential to reduce their carbon footprint. The creation of Green Hydrogen/Ammonia refuelling hubs at Indian ports, the creation and use of Green Hydrogen/Ammonia-fuelled vessels, the use of Green Hydrogen/Ammonia to power zero-emission technologies for vehicles and terminal equipment at ports, and the growth of supply chains are all potential prospects. At least two ships will be converted by The Shipping Corporation of India, or in the event of its disinvestment, its successor private organization, to run on Green Hydrogen or other Green Hydrogen produced fuels by 2027. Furthermore, by 2025, green ammonia bunkers and refuelling stations will be built in at least one port. By 2035, PSUs will be required to charter at least one ship each to be powered by Green Hydrogen or derived fuels in 2027, in order to encourage excursions into Hydrogen-powered shipping lines. After that, for each year of the mission, the firms will have to add at least one spacecraft fuelled by green hydrogen or its derivatives.

Upcoming Projects

Some of the prominent conglomerates and state-run industrial players plan to foray into the green hydrogen space:



Project Details


Adani Group

In June 2022, Adani New Industries Ltd (ANIL) partnered with France’s TotalEnergies to invest US$ 50 billion over the next 10 years in India to produce green hydrogen and develop an ecosystem. ANIL aims to develop a green hydrogen production capacity of 1 million tons per annum before 2030. Furthermore, in December 2022, to develop alkaline electrolysers, polymer exchange membranes (PEMs), anion exchange membranes (AEMs), and CRT's cutting-edge "C-Cell" technology for mass production, ANIL signed a development and licensing agreement with Cavendish Renewable Technology (CRT), a hydrogen technology company with headquarters in Melbourne.


Reliance Industries Ltd (RIL)

By 2025, RIL is planning to switch from producing grey hydrogen to green hydrogen. By the end of this decade, the company wants to bring the price of producing green hydrogen down to less than US$ 1/kg.


Indian Oil Corporation Ltd (IOCL)

As part of a decarbonization effort, IOCL aims to replace at least a tenth of the present fossil fuel-based hydrogen at its refineries with green hydrogen. The company will also establish a subsidiary this year to house its green energy companies.


Oil & Natural Gas Corporation (ONGC)

India's state-run Oil & Natural Gas Corporation (ONGC) and joint venture partner Greenko signed an agreement in July 2022 to invest up to US$ 6.2 billion in green hydrogen and renewable energy projects.


Greenko-Keppel Deal

In October 2022, Singapore's Keppel Infrastructure and the Greenko Group signed an MoU, announcing that India will begin exporting green energy in 2025, with the first shipments going to Singapore's power plant. The two firms will investigate the potential of green hydrogen in India through the MoU. They aim to secure a 250,000 tonnes contract per year to supply Singapore's new Keppel 600 MW power plant. Moreover, Greenko has invested US$ 5 billion in the storage of green hydrogen energy that is carbon-free throughout India.


GAIL India Ltd

It plans to establish one of India's largest proton exchange membrane (PEM) electrolysers. The renewable energy-based project would be set up at GAIL's Vijaipur Complex in Madhya Pradesh's Guna district. The plan calls for the project to produce about 4.3 MT of green hydrogen each day (approx. 10 MW capacity). It will be put into operation by November 2023. GAIL began India's pioneering project to mix hydrogen into the natural gas supply in January 2022.


Bharat Petroleum Corporation Ltd (BPCL)

BPCL plans to establish a green hydrogen production facility to deploy a 5 MW electrolyser system in one of its city gas distribution projects. In April 2022, BPCL and the government of Odisha signed a five-year MoU to investigate the viability of establishing, a renewable energy plant and a green hydrogen plant (both for local and export clients). Additionally, the company and Bhabha Atomic Research Centre (BARC) have collaborated to create alkaline electrolyser technology to produce green hydrogen as it intends to increase electrolyser production for commercial use, particularly in refineries.


National Thermal Power Corporation Ltd (NTPC)

NTPC intends to use around 5 GW of capacity in the green hydrogen and ammonia business out of its 60 GW green portfolio target by 2032. Moreover, it has started three pilots in the hydrogen business, one is a trial project at its Kawas plant in Gujarat to mix renewable hydrogen and natural gas. The second is in Leh, where the business is constructing solar farms combined with a green hydrogen filling station. Buses powered by hydrogen-based fuel cells will also be operated there. Lastly, the third is a pilot project at its Vindhyachal plant in Madhya Pradesh to produce hydrogen along.


Hindustan Petroleum Corporation Ltd (HPCL)

HPCL is planning to build a 370-tonne-per-year green hydrogen facility at its Vizag refinery, providing it with a capacity of 24,000 tons of green hydrogen annually.


The Road Ahead
Green Hydrogen is likely to play a critical role in India’s energy transition, particularly in the decarbonization of hard-to-abate sectors. The Green Hydrogen mission is anticipated to speed up the deployment of the Green Hydrogen ecosystem and open new avenues for innovation and financial investment throughout the Green Hydrogen value chain, leading to financial transactions, employment possibilities, and economic expansion. The Government of India's initiatives will jumpstart the procedure and give the market potential in many industries, the needed boost through cost-cutting and economies of scale.