Last Update 29 June 2023

Mapping of hydrogen production costs globally and comparing with India

Hydrogen market location fitment analysis in India

As a matter of fact, hydrogen can be produced in variety of ways, wherein some of the ways are “cleaner” when compared to others. It is pertinent to note that to maximize the environmental gains H2 must be produced GHGs. The cleanest method to producing hydrogen involves breaking of water down into its components through electrolysis, using electricity feed generated from renewable sources is called “green hydrogen”. For India, as a country it is pertinent to focus production of green H2 at a larger scale, as the country is promoting renewable installations, especially solar PV and solar roof top.

Currently the most common hydrogen produced globally is gray H 2 , involves use of a fossil fuel to heat water into steam and mixing the steam with methane in order to capture H2 thus released. While we add a filter to capture the released GHGs the filtered H 2 shall result will be referred as “blue hydrogen”. In near future blue hydrogen is likely to remain economically most viable globally as well as in India wherein the availability of methane, with CCS technology have achieved maturity.

Green hydrogen (H2) can be made at a cost of US$1/kg by 2030 in India. Reliance shall pursue this target before the turn of this decade and make India the 1 st country globally to achieve $1/1kg in 1 decade – “the 1-1-1 target for green H2”- Mr. Mukesh Ambani, Chairman & MD, Reliance Industries
Also, in the upcoming space of 5 -10 years in India the most viable H 2 production shall be either blue or green. The focus in the analysis done in this segment shall focus upon the green hydrogen production in the country as per regions and states to evolve with most preferred locations in the country for developing low-cost green hydrogen.


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