National Green Hydrogen Mission (2023)

The National Green Hydrogen Mission is the Government of India's main programme to make India a global hub for producing, using and exporting green hydrogen. Green hydrogen is hydrogen made by splitting water with electricity from renewable sources like solar and wind, so almost no carbon dioxide is released. The Union Cabinet approved the Mission on 4 January 2023 with an initial budget of ₹19,744 crore.

Its main target is to build the capacity to produce at least 5 million metric tonnes (MMT) of green hydrogen a year by 2030.

Why does India need it?

India already uses about 6 million tonnes of hydrogen every year, mostly in oil refineries and fertiliser plants (to make ammonia). Almost all of it is grey hydrogen, made from natural gas, which releases about 10 to 12 kg of CO2 for every kg of hydrogen. India also imports most of its oil and much of its gas, which costs a lot of foreign exchange.

Green hydrogen can cut emissions in industries that are hard to run on electricity alone, such as steel, fertilisers, refining and shipping. It can also reduce fuel imports. This supports India's goal of net zero by 2070.

Where did it come from?

• On 15 August 2021, in the Independence Day speech, the Prime Minister announced a National Hydrogen Mission, with the goal of making India a global hub for green hydrogen.
• On 17 February 2022, the Ministry of Power notified the Green Hydrogen and Green Ammonia Policy. Its main benefit was a waiver of inter-state transmission (ISTS) charges for 25 years for renewable power used to make green hydrogen or ammonia, for projects commissioned before 30 June 2025. It also allowed open access within 15 days and banking of renewable power for up to 30 days.
• On 4 January 2023, the Union Cabinet approved the full National Green Hydrogen Mission.

Who runs it?

The Ministry of New and Renewable Energy (MNRE) is the nodal ministry. It writes the scheme guidelines. The Solar Energy Corporation of India (SECI) runs the tenders for the main incentive programme.

How is the money divided?

The initial outlay of ₹19,744 crore is split as follows:

• ₹17,490 crore: SIGHT (Strategic Interventions for Green Hydrogen Transition), the main incentive programme. It has two parts:
• Component I: ₹4,440 crore for making electrolysers in India.
• Component II: ₹13,050 crore for producing green hydrogen.
• ₹1,466 crore for pilot projects (such as using hydrogen in steel, transport and shipping).
• ₹400 crore for research and development (R&D).
• ₹388 crore for other components of the Mission.

What are the 2030 targets?

• Green hydrogen production capacity of at least 5 MMT per year, possibly rising to 10 MMT if export markets grow.
• About 125 GW of new renewable energy capacity linked to this production.
• Over ₹8 lakh crore of investment and over 6 lakh jobs.
• Cumulative cut in fossil fuel imports of over ₹1 lakh crore.
• Avoiding nearly 50 MMT of greenhouse gas emissions every year.

What makes hydrogen "green" in India?

In August 2023, MNRE notified the Green Hydrogen Standard for India. Hydrogen counts as green only if its emissions are not more than 2 kg of CO2 equivalent per kg of hydrogen. This is measured "well-to-gate", meaning all emissions from treating the water, splitting it, cleaning, drying and compressing the hydrogen are counted. It is taken as an average over the last 12 months. The Bureau of Energy Efficiency (BEE), under the Ministry of Power, accredits the agencies that check and certify this.

Progress so far

• Under SIGHT, incentives have been awarded for about 8.62 lakh tonnes per year of green hydrogen production and about 3,000 MW per year of electrolyser manufacturing capacity.
• MNRE has recognised three major ports as green hydrogen hubs: Deendayal Port (Kandla, Gujarat), V.O. Chidambaranar Port (Tuticorin, Tamil Nadu) and Paradip Port (Odisha), under hub guidelines issued in 2025.
• On 8 January 2025, the Prime Minister laid the foundation stone of NTPC Green Energy's Green Hydrogen Hub at Pudimadaka (Anakapalli district, near Visakhapatnam, Andhra Pradesh). The Government calls it the first green hydrogen hub under the Mission. It is a joint project of NTPC Green Energy and the Andhra Pradesh state renewable energy agency, with a planned investment of about ₹1.85 lakh crore. It plans to make about 1,500 tonnes of green hydrogen a day. Most of this will be turned into products such as green ammonia and green methanol, and much of it is meant for export.
• As of early 2026, actual commissioned green hydrogen capacity was still small (around 8,000 tonnes per year [Unverified]) compared with the 5 MMT target.
• Pilot projects include hydrogen buses, hydrogen in steel-making and hydrogen blending in city gas networks.

The colours of hydrogen

Hydrogen itself is colourless; the "colour" tells you how it was made:

• Grey: made from natural gas (steam methane reforming), with the CO2 released into the air.
• Blue: made from natural gas, but most of the CO2 is captured and stored.
• Green: made by splitting water with renewable electricity.
• Pink: made by splitting water using nuclear electricity.
• Brown/black: made from coal.

Commonly confused concepts

• National Hydrogen Mission (2021) vs National Green Hydrogen Mission (2023): The 2021 announcement was the idea; the 2023 Cabinet approval created the actual Mission with money and targets.
• Green Hydrogen Policy (2022) vs the Mission (2023): The 2022 policy (Ministry of Power) gave transmission and open-access benefits. The 2023 Mission (MNRE) gave a full programme with incentives and targets.
• Green hydrogen vs green ammonia: Green ammonia is made by combining green hydrogen with nitrogen from the air. It is easier to store and ship, so much export is planned as ammonia.
• Hydrogen fuel cell vs battery: A battery stores electricity. A fuel cell makes electricity from hydrogen and oxygen, releasing only water.

Issues, criticism and the way forward

• High cost: Green hydrogen still costs much more than grey hydrogen. Electrolysers and renewable power must become cheaper.
• Water and land: Electrolysis needs clean water (about 9 litres per kg of hydrogen, before treatment losses) and large areas for solar and wind plants. This can be a concern in dry regions.
• Slow uptake: Awards and announcements are large, but actual production is still small. Demand from buyers is not yet certain.
• Storage and transport: Hydrogen is light and leaks easily, so storing and moving it is hard and costly.
• Imported technology: Many electrolyser parts are imported. SIGHT Component I tries to build them in India.
• Way forward: Create assured demand (for example, obligations for refineries and fertiliser plants to use some green hydrogen), lower costs through scale, build hubs near ports and renewable sites, develop common standards and certification, and attract global partners and buyers.

Concepts to Know

• Steam methane reforming: The common way of making hydrogen by reacting natural gas with very hot steam. It releases a lot of CO2.
• Electrolysis: Using electricity to split water into hydrogen and oxygen.
• ISTS (Inter-State Transmission System) charges: Fees paid for carrying electricity over the national grid from one state to another.
• Open access: The right of a large consumer to buy electricity from any supplier, not only the local distribution company.
• Net zero: A state where a country removes as much greenhouse gas from the air as it releases, so the total added is zero.
• CO2 equivalent: A way to express the warming effect of all greenhouse gases as if they were carbon dioxide.