The Indian government’s push to increase green hydrogen
production through additional tenders and capacity awards is a significant step
in fulfilling its Green Hydrogen Mission. With an ambitious target to reach 5
million tonnes of green hydrogen production annually by 2030, India aims to
position itself as a global leader in the green hydrogen market. By scaling up
capacity through these tenders, India is not only focusing on energy production
but also creating a robust framework for the entire green hydrogen value chain.
This includes production, storage, transportation, and applications across
sectors such as aviation, railways, and heavy industries. The increased
production capacity will ensure that hydrogen can serve as a viable alternative
to fossil fuels, advancing the decarbonization goals of critical industries
that contribute heavily to carbon emissions.
A core challenge for India’s green hydrogen adoption remains
the high production cost, which has prevented large-scale deployment despite
policy incentives. The government's effort to issue additional tenders and
implement further standards for green hydrogen production could help reduce
costs over time by promoting competition and attracting private investments. By
introducing a Green Hydrogen Certification Scheme and accrediting agencies to
monitor projects, the government is working to create standardized processes
and improve transparency, which can ultimately build confidence among
stakeholders and facilitate broader market participation. A structured,
transparent market will play a key role in driving the economic viability of
green hydrogen technologies.
India’s progress in developing electrolyser manufacturing
capacity is another critical aspect of its green hydrogen strategy.
Electrolysers, which use renewable electricity to split water into hydrogen and
oxygen, are key to scaling up green hydrogen production. The two completed
bidding tranches for setting up a 3,000 MW per annum electrolyser manufacturing
capacity are promising steps in ensuring India’s ability to meet its green
hydrogen goals. Furthermore, the government’s focus on incentivizing state-level
policies in Andhra Pradesh, Gujarat, and Maharashtra is an effective way to
leverage regional advantages in renewable energy generation and infrastructure
development, further promoting green hydrogen production across the country.
In addition to the environmental and economic benefits of
green hydrogen, the expansion of production and related infrastructure will
create significant opportunities for investment and job creation in the clean
energy sector. With commitments from major companies like Reliance Industries,
Adani Enterprises, and Indian Oil Corporation, the sector is likely to attract
even more capital in the coming years. As green hydrogen projects scale up,
there will be a growing demand for skilled labor, technology innovation, and
manufacturing capabilities. The long-term vision of India’s National Green
Hydrogen Mission, backed by substantial investment and policy support, can
catalyze a sustainable green energy ecosystem, contributing to the country’s
energy security, reducing dependence on fossil fuel imports, and boosting its
position as a clean energy hub globally.
