Context: 

Recently, FICCI has released a report on green hydrogen which highlights that India can capture 10% of the global green hydrogen market by2030 by addressing existing economic and infrastructural barriers.

About green hydrogen:

Green hydrogen, produced via electrolysis using renewable energy, is a zero-emission fuel critical for decarbonising sectors such as steel, fertilisers, mobility, and shipping. It is central to achieving India’s net-zero targets and ensuring long-term energy security.

India’s Green Hydrogen Initiatives:

• Under the National Green Hydrogen Mission (2023), the government allocated ₹19,744 crore to achieve 5 million tonnes (MMT) of annual green hydrogen production by 2030. This will require around 125 GW of renewable energy capacity and significant scale-up in electrolyser manufacturing and water logistics.
• Pilot projects have been initiated, including 37 hydrogen-powered vehicles and 9 upcoming refuelling stations. This reflects India’s early commitment to building a domestic green hydrogen ecosystem.

Challenges to Green Hydrogen Adoption:

Despite potential, India faces several obstacles:

• High Costs: At ~$4–4.5/kg, green hydrogen is nearly double the cost of grey hydrogen.
• Subsidy Distortion: Ongoing fossil fuel subsidies reduce the competitiveness of hydrogen.
• Infrastructure Gaps: Limited storage, pipelines, and logistics remain bottlenecks.
• Demand Uncertainty: Industry hesitates to adopt without assured long-term contracts.
• Global Competition: Countries like Japan, South Korea, and the EU are advancing faster in hydrogen imports and infrastructure.

Key Recommendations of FICCI–EY Report:

The report outlines actionable reforms:

• Redirect fossil fuel subsidies towards renewable energy and hydrogen.
• Introduce green hydrogen purchase obligations (GHPOs) for industrial sectors.
• Implement a carbon pricing mechanism to level the playing field.
• Create demand aggregation platforms with secure payment systems.
• Develop an export strategy targeting EU and East Asian markets.
• Promote domestic R&D and electrolyser manufacturing.

Conclusion:

India holds a strategic advantage in the global green hydrogen economy due to its renewable energy base, low power costs, and favourable geography. With timely policy action, infrastructure investment, and global partnerships, India can become a major hydrogen exporter and a pillar in the clean energy transition. Achieving a 10% global market share by 2030 is realistic—but only if existing gaps are addressed proactively.