'India has potential to emerge as world’s green hydrogen hub'

New Delhi, Nov 2 Green hydrogen has emerged as a key fuel to cut emissions in difficult sectors such as steel, fertilisers, shipping, aviation, and road transport as the world fights the war against climate change, according to an article by former G20 Sherpa and NITI Aayog CEO Amitabh Kant.

While Europe, Japan, Korea, and the Middle East are investing billions into renewable hydrogen, India has the right mix of resources, policy, and demand to emerge as the world’s pre-eminent hub for this new energy vector, states the article by Amitabh Kant in India Narrative.

The article identifies five decisive strengths that are working in India’s favour.

First, India offers globally unmatched rates for round-the-clock renewable energy, with prices ranging from Rs 4.60 to Rs 5 per kWh, making green hydrogen production extremely cost-competitive. Second, government policy has been both consistent and ambitious: the National Green Hydrogen Mission sets clear targets and provides the regulatory confidence that investors and companies seek. Third, India’s industrial base is already strong, spanning engineering capabilities, pipelines, refineries, and ports, providing a ready ecosystem for scaling green hydrogen. Fourth, India’s large domestic demand for fertilisers, refining, steel, and chemicals ensures that hydrogen uptake will be driven not just by exports but also by domestic consumption. And fifth, the global export opportunity is immense. Markets like Europe and Japan are actively seeking clean hydrogen imports, and India is uniquely placed to serve them, the article states.

Highlighting the achievements of India’s green hydrogen drive, the article points out that the Solar Energy Corporation of India (SECI) has awarded contracts for 450,000 tonnes per annum of green hydrogen production with leading firms like Reliance, Greenko, ACME, and L&T in the fray. SECI has also finalised a 724,000 tonne green ammonia tender aggregating demand from 13 fertiliser plants nationwide. This tender achieved a record-low price of Rs 55.75 per kilogram, among the most competitive globally. Similarly, Indian Oil Corporation has awarded a landmark project at its Panipat refinery, and Bharat Petroleum has partnered with Singapore’s Sembcorp to develop green hydrogen and green ammonia projects in India.

The article also states that while the risks associated with expanding India’s green hydrogen industry are significant, they are not insurmountable. High capital costs can be addressed through concessional finance, sovereign green bonds, and blended finance models. Certification disputes must be preempted by adopting international standards and securing bilateral recognition agreements with major markets. Skill shortages can be mitigated through a national skilling mission tailored to hydrogen and allied industries. The challenge of tender cancellations and delays can be improved by better bid design and more realistic project timelines.

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