What is green hydrogen
Green hydrogen is hydrogen gas (H2) produced through electrolysis of water using electricity from renewable sources, primarily solar and wind. The electrolysis reaction (2H2O → 2H2 + O2) splits water into hydrogen and oxygen using electrical energy, producing pure hydrogen without direct carbon emissions.
This contrasts with grey hydrogen (steam methane reforming of natural gas, emitting CO2), blue hydrogen (grey with carbon capture and storage) and brown/black hydrogen (from coal). Green hydrogen is the only truly zero-emission form, making it central to deep decarbonisation strategies for sectors where direct electrification is difficult.
India launched the National Green Hydrogen Mission in January 2023, led by the MNRE, with a target of 5 million tonnes annual green hydrogen production by 2030, supported by approximately 125 GW of dedicated renewable energy capacity. The mission has an outlay of ₹19,744 crore and aims to position India as a global green hydrogen hub, running alongside the broader 500 GW renewable capacity roadmap that solar is expected to anchor.
Why green hydrogen matters
Hard-to-abate sectors. Steel, fertiliser, refineries, heavy mobility cannot easily switch to direct electricity.
Carbon abatement at scale. 5 MMT green hydrogen avoids ~50 MMT CO2 annually.
Export potential. India’s solar resource makes it cost-competitive globally, as falling C&I solar LCOE directly lowers the cost of electricity feeding the electrolyser.
Energy security. Reduces fossil fuel import dependence.
Industrial transformation. Anchors a new domestic value chain.
Production process
- Water purification.
- Electricity delivered to electrolyser from a dedicated industrial-scale solar or wind installation.
- Electrolyser splits water: 2H2O → 2H2 + O2.
- Hydrogen compressed and stored.
- Oxygen vented or sold.
- Hydrogen distributed by pipeline, truck or as ammonia/methanol carrier.
Technical deep dive
Electrolyser technologies
| Type | Maturity | Efficiency | Cost | Use case |
|---|---|---|---|---|
| Alkaline | Mature | 60-70% | Lower | Large-scale steady state |
| PEM | Commercial | 65-75% | Higher | Variable renewable |
| AEM | Emerging | 65-75% | Medium | Future |
| SOEC | Pre-commercial | 80-85% | Highest | Heat integration |
Energy intensity
| Process | kWh per kg H2 |
|---|---|
| Theoretical minimum | 39 |
| Alkaline electrolyser | 50 to 55 |
| PEM electrolyser | 48 to 53 |
| SOEC (with heat) | 35 to 40 |
Indian green hydrogen cost
| Year | Approximate cost ($/kg) |
|---|---|
| 2023 | 4.5 to 6.0 |
| 2025 | 3.5 to 4.5 |
| 2027 | 2.5 to 3.5 |
| 2030 target | 2.0 |
National Green Hydrogen Mission components
| Component | Outlay |
|---|---|
| SIGHT (Strategic Interventions for Green Hydrogen Transition) | ₹17,490 crore |
| Pilot projects | ₹1,466 crore |
| R&D | ₹400 crore |
| Other | ₹388 crore |
Real-world applications
Ammonia and fertiliser production (~50% of current grey hydrogen use).
Oil refining (~30% of current use).
Direct reduced iron (DRI) for green steel.
Methanol production.
Fuel cell vehicles (heavy mobility).
Long-duration energy storage.
Backup power for data centres and telecom.
Major Indian green hydrogen projects
| Company | Project |
|---|---|
| Reliance | 1 MMT/year Jamnagar |
| Adani | 1 MMT/year green hydrogen + green ammonia |
| NTPC | 80 tonnes/day Vindhyachal |
| Indian Oil | Mathura refinery green H2 |
| L&T | 70 MW electrolyser + 1 GW dedicated solar |
| ACME | 1.3 MMT green ammonia Oman |
| JSW | Green steel pilot |
Advantages
Zero direct emissions.
Energy carrier for hard-to-abate sectors.
Export market access.
Cost decline trajectory.
Government support through SIGHT scheme.
Limitations
High capital cost today.
Round-the-clock renewable needed.
Storage and transport infrastructure underdeveloped.
Limited downstream demand maturity.
Water consumption (~10 kg water per kg H2).
Common challenges
Electrolyser cost decline pace.
Renewable PPA structuring for round-the-clock supply.
Water availability in arid regions.
Hydrogen pipeline infrastructure gap.
Off-take agreements still maturing.
Best practices
Site projects near both strong solar yield and water availability.
Use round-the-clock renewable through wind plus utility-scale solar plus storage.
Plan for downstream off-take before electrolyser commissioning.
Align with SIGHT eligibility for incentives.
Document carbon abatement for ESG reporting and credits.
Indian market context
National Green Hydrogen Mission launched January 2023.
SIGHT Tranche I tendered in 2024 for 412,000 tonnes annual production.
Major Indian and international electrolyser manufacturers establishing capacity, a trend visible on the trade floor at events like REI Expo, where green-hydrogen exhibitors now sit alongside solar and storage.
Green ammonia export pilots underway.
R&D centres at IIT Bombay, IIT Madras, NCL Pune and others.
Standards and certifications
| Standard | Scope |
|---|---|
| Green Hydrogen Standard (MNRE) | Indian definition: <2 kg CO2eq/kg H2 |
| ISO/TC 197 | Hydrogen technologies |
| IEC TC 105 | Fuel cell technologies |
| SIGHT scheme guidelines | Indian incentives |
| EU CertifHy | European green hydrogen certification |
Common mistakes
Underestimating round-the-clock renewable requirement.
Inadequate downstream off-take planning.
Ignoring water requirements.
Skipping certification for export markets.
Treating green hydrogen as drop-in replacement for grey.
Key takeaways
Green hydrogen is hydrogen produced from renewable electricity via electrolysis. India’s National Green Hydrogen Mission targets 5 MMT by 2030 with ₹19,744 crore outlay. Solar electricity at sub-₹3/kWh makes green hydrogen economically viable, with $2/kg cost target by 2030. Key applications: fertiliser, refining, steel, methanol, mobility. Major Indian players: Reliance, Adani, NTPC, Indian Oil, L&T, ACME, JSW.
Further reading
For how Green Hydrogen plays out in real projects, these guides go deeper:
Sources
- National Green Hydrogen Mission Document, MNRE.
- SIGHT Scheme Guidelines, MNRE.
- IEA Global Hydrogen Review 2024.
- IRENA Green Hydrogen Cost Reduction.
- BloombergNEF Hydrogen Outlook.
- Reliance Industries Annual Report on green hydrogen.
- Adani Group ESG reports.
- MNRE Annual Report 2023-24.
- ISO/TC 197 Hydrogen technologies standards.
Frequently Asked Questions
What is green hydrogen in simple words?
How is green hydrogen made?
What is grey vs blue vs green hydrogen?
What is the National Green Hydrogen Mission?
Why does green hydrogen matter?
What is the production cost?
How much renewable energy is needed?
What are electrolyser types?
Where is green hydrogen used?
Is there green hydrogen PLI?
Who are major Indian green hydrogen players?
What is round-the-clock renewable?
Is green hydrogen export viable?
What is the role of solar?
When does green hydrogen become economic?
From the Blog
Co-founder & CEO driving Qbits Energy's product strategy and growth across India.