Green Hydrogen in India: Big Targets, High Costs and the Road to 2030
A recent analysis reviewed how far India has come under the National Green Hydrogen Mission (NGHM), which aims to produce at least 5 million tonnes (Mt) of green hydrogen a year by 2030.
By December 2025, incentives had been awarded for 0.862 million tonnes per annum of production capacity, about 17% of the 2030 target, and for 3,000 MW per annum of electrolyser (hydrogen-making machine) manufacturing.
Cost is the biggest barrier. Renewable electricity makes up about 50–70% of the cost of making green hydrogen. Government production subsidies cover only about 10–15% of the gap between green and grey hydrogen (hydrogen made from natural gas).
Three ports, Deendayal (Kandla), V.O. Chidambaranar (Thoothukudi) and Paradip, have been named green hydrogen hubs for production, storage and shipping.
In July 2026, a company producing under the mission signed long-term deals to supply green ammonia and green methanol from Paradip to buyers in Japan.
The analysis suggests a Green Hydrogen Production Obligation (a rule requiring industries to use some green hydrogen), cheaper renewable power, home-made electrolysers, carbon pricing on grey hydrogen and export markets as long-term fixes.
Electrolysers: How Water Is Split to Make Green Hydrogen
An electrolyser is a machine that uses electricity to split water (H2O) into hydrogen gas and oxygen gas. This process is called electrolysis. When the electricity comes from renewable sources like solar or wind, the hydrogen made is called green hydrogen, because almost no carbon dioxide is released. The electrolyser is the heart of any green hydrogen plant, in the same way that an engine is the heart of a car.
The analysis notes that India has backed 3,000 MW a year of electrolyser manufacturing, and that cheaper electrolysers and renewable power are key to closing the cost gap. Making electrolysers at home also reduces dependence on global supply chains, which the analysis flags as a risk.
National Green Hydrogen Mission (2023)
The National Green Hydrogen Mission is India's main programme to make the country a global hub for producing, using and exporting green hydrogen. It was approved by the Union Cabinet in January 2023 and is run by the Ministry of New and Renewable Energy (MNRE). Its goal is to cut emissions in industries that are hard to run on electricity alone, such as fertilisers, refining and steel, and to reduce fossil fuel imports.
The analysis measures India's progress against this mission's 2030 target and finds that subsidies alone cover only a small part of the cost gap. It argues the mission now needs demand-side tools, such as a production obligation and carbon pricing, to reach its goals.
Green Ammonia
Green ammonia is ammonia (NH3) made using green hydrogen and nitrogen taken from the air. It is the same chemical as normal ammonia, but its production releases almost no CO2. It is used to make fertilisers, can be burned as a fuel, and is an easy way to carry hydrogen over long distances because it turns liquid much more easily than hydrogen does.
The analysis says shipping green hydrogen as ammonia is more practical than shipping pure hydrogen. The Paradip export deals with Japan show this route in action, while EU certification rules show what Indian exporters must prepare for.
- NGHM launched January 2023; target at least 5 Mt green hydrogen a year by 2030
- Production capacity awarded by December 2025: 0.862 MTPA (about 17% of target); electrolyser manufacturing awarded: 3,000 MW per annum
- SIGHT programme allocation: ₹17,490 crore
- Green hydrogen incentive: ₹50 to ₹30 per kg over three years; green ammonia: ₹8.8 to ₹5.3 per kg
- Electrolyser incentive: ₹4,440 to ₹1,480 per kW over five years
- Subsidies cover about 10–15% of the green-grey cost gap; renewable power is 50–70% of production cost
- Green hydrogen hub ports: Deendayal, V.O. Chidambaranar, Paradip
- Hydrogen transport: compression at 200–700 bar or liquefaction at minus 253°C
- India's hydrogen trade in 2024: imports about $871,700, exports about $17,400; Nigeria took 45.8% of exports
- EU and East Asia may together import about 3.4–6 Mt of green hydrogen a year by 2030
- Green Hydrogen Standard: not more than 2 kg CO2 equivalent per kg hydrogen (12-month average)