India has successfully commissioned approximately 8,000 tonnes per annum of green hydrogen production capacity as of February 2026, according to Minister of State for the Ministry of New and Renewable Energy, Shripad Yesso Naik, who made this announcement in the Rajya Sabha.

This milestone represents significant progress under India's National Green Hydrogen Mission (NGHM), which aims to establish the country as a global hub for the production, usage, and export of green hydrogen and its derivatives. The government's ambitious targets project India's green hydrogen production capacity to reach 5 million metric tonnes per annum by 2030.

Competitive Bidding Results and Pricing

The National Green Hydrogen Mission has achieved notable cost reductions through competitive bidding processes. For supply to Indian Oil Corporation Limited's refinery, the discovered cost of green hydrogen stands at INR 397 per kg, inclusive of 18% GST. Meanwhile, supply contracts for both Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited refineries have been secured at INR 387 per kg, also inclusive of 18% GST.

These pricing levels reflect the current market conditions for green hydrogen in India's emerging clean energy sector. The competitive bidding mechanism has enabled the government to establish benchmark prices for green hydrogen supply to major public sector refineries.

Production Cost Structure Analysis

According to the World Bank Group report titled "Electrolysers for Hydrogen Production," renewable energy sources, including solar and wind power, represent the largest component of green hydrogen production costs. The report estimates that renewable energy accounts for approximately 50% to 70% of total green hydrogen production expenses, translating to about INR 235 per kg of the overall cost structure.

This cost breakdown highlights the critical role of renewable energy infrastructure in making green hydrogen economically viable. The substantial portion attributed to renewable energy costs underscores the importance of continued investment in solar and wind power generation capacity to support the green hydrogen mission's objectives.

Strategic Framework and Implementation

The Government of India is implementing the National Green Hydrogen Mission as part of its broader clean energy transition strategy. The mission encompasses multiple aspects of the hydrogen value chain, from production and usage to export capabilities, positioning India to compete in the global green hydrogen market.

The 8,000 TPA capacity commissioned by February 2026 represents the initial phase of what is expected to be a rapid scaling of green hydrogen infrastructure across the country. With the target of reaching 5 million metric tonnes per annum by 2030, India faces the challenge of expanding its current capacity by more than 600 times within the next four years.

The focus on supplying major public sector refineries demonstrates the government's strategy of creating immediate demand for green hydrogen production while supporting the decarbonization of existing industrial operations. Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited represent significant consumers that can provide stable demand for the growing green hydrogen sector.

The pricing achieved through competitive bidding processes indicates that India is making progress toward cost-competitive green hydrogen production. The relatively small difference between the rates for different refineries suggests a maturing market with standardized pricing mechanisms.

The renewable energy cost component identified in the World Bank Group report points to the interconnected nature of India's clean energy initiatives. Success in the green hydrogen sector depends heavily on continued expansion and cost reduction in solar and wind power generation, making the National Green Hydrogen Mission part of a broader renewable energy ecosystem.

As India moves forward with this initiative, the commissioning of 8,000 TPA capacity provides a foundation for the massive scale-up required to meet the 2030 targets and establish the country's position in the global green hydrogen market.

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