Green hydrogen capacity to rise sharply in 2-3 years: MNRE director

India will see a rapid expansion of green hydrogen capacity over the next 2-3 years as new projects come online, with MNRE estimating growth from 8,000 tonnes to at least 200,000 tonnes

India is set for a major jump in green hydrogen production capacity within the next two to three years, with a long list of sectoral projects in the pipeline to start commissioning. The growth will ramp up decarbonisation efforts across hard-to-abate sectors and bring the country closer to its Net Zero target for 2070.

 

The government has initiated projects in the steel, transport, and shipping sectors, many of which are operational or partially completed, Prasad Chapekar, director, Ministry of New and Renewable Energy (MNRE), said, adding that in the refinery segment, tenders have already been awarded for around 20,000 tonnes, with another 10–12 tenders in the pipeline.

 

“We have issued tenders for 1 MTPA of green hydrogen production capacity, supported by subsidies. Several plants currently under construction are expected to be commissioned soon. The commissioned green hydrogen capacity currently stands at 8,000 tonnes, and over the next three years, the government expects a sharp rise in capacity, targeting at least 200,000 tonnes,” he said, speaking at an event here.

 

Chapekar said that smaller plants, which do not require connectivity and land support and can be commissioned faster, are being left out of the current subsidies. He added that the government is introducing a subsidy scheme for small-scale plants, which is yet to be officially approved.

 

“We have also worked on standards, regulations, and enabling frameworks, including policies related to SEZs, environmental clearances, and transmission waivers,” he said, commenting on the government's efforts to increase green hydrogen deployment.

 

Recently, India recorded its lowest-ever price for green hydrogen supply at ₹279 ($3.08) per kilogram. It was recorded in a bid to supply 10,000 tonnes of green hydrogen annually to Numaligarh Refinery in Assam, which is majority-owned by state-run Oil India.

 

In contrast, grey hydrogen is priced below ₹200 per kg. Introducing a carbon tax or a clear carbon taxonomy framework would drive faster adoption of green hydrogen, said Anuj Sharma, CEO of Waaree Energies’ hydrogen business, speaking at the same event.

 

“With continued research, development, and efficiency improvements in electrolysis, this gap can close further. Demand mandates would scale the industry, attract investment into R&D and accelerate cost reductions,” he said.

 

Under the National Green Hydrogen Mission (NGHM), launched in 2023 with an initial outlay of ₹19,744 crore, India is targeting 5 MT of green hydrogen production annually by 2030.