India is aiming to bring down the cost of green hydrogen to USD 2 per kilogram by 2030, a target that will position the country among the lowest-cost producers globally, according to the Union Minister for New and Renewable Energy. The minister made this announcement on Thursday while speaking at the first annual Green Hydrogen R&D Conference.

Cost Reduction Progress

The government's interventions, combined with industry participation, are steadily pushing costs down, with recent auctions already discovering prices significantly lower than previous levels. According to EY, India can produce green hydrogen at one of the lowest costs in the world by 2030. The SECI auction recently discovered a price of INR 49.75 per kg, compared to INR 100.28 per kg in 2024, demonstrating that India is breaking cost barriers faster than expected.

National Green Hydrogen Mission Framework

The National Green Hydrogen Mission (NGHM), launched in 2023 with an outlay of INR 19,744 crore, is central to India's clean energy transition. The mission has four strategic pillars: policy and regulatory framework, demand creation, R&D and innovation, and enabling infrastructure. The R&D scheme under the mission carries a budgetary outlay of INR 400 crore till 2025–26.

Under the first call for proposals, 23 projects have been awarded across different areas. These include seven projects in safety and integration, supported by INR 10.83 crore, five projects on hydrogen production from biomass, seven projects on hydrogen applications, and four projects on non-biomass hydrogen production routes. IITs, IISERs, CSIR labs, and industry partners are carrying out these projects.

A second round of R&D proposals was launched on July 14, with submissions open until September 15. The National Green Hydrogen Mission has set clear goals of producing 5 million metric tonnes of green hydrogen annually by 2030, supported by 125 GW of additional renewable energy capacity, INR 8 lakh crore of investments, 6 lakh new jobs, and reduction of 50 million tonnes of CO2 emissions each year.

International Cooperation and Pilot Projects

On the global front, India is deepening cooperation with the European Union through the Trade and Technology Council. More than 30 proposals have already been received for joint R&D on hydrogen production from wastewater, involving both Indian and EU institutions. India has recently launched several pilot projects under the mission. The country's first port-based green hydrogen pilot project was inaugurated at V.O. Chidambaranar Port in Tamil Nadu, making it the first port in the country to produce green hydrogen.

In steel, five pilot projects are underway, while in shipping, vessels are being retrofitted and refuelling facilities are being developed at Tuticorin Port. In transport, hydrogen buses and refuelling stations are already operating. In fertilisers, the first-ever auction for green ammonia discovered a price of INR 49.75 per kg, with supply to Paradeep Phosphates in Odisha.

The minister also launched a new call for proposals for start-ups to undertake pilot projects in innovative hydrogen production and utilisation technologies. With an allocation of INR 100 crore, the scheme will provide up to INR 5 crore per project.

Infrastructure Development and Industry Support

At the conference, 25 start-ups are showcasing innovations from electrolyser manufacturing to AI-driven optimisation and biological hydrogen. The minister emphasized that India will not import innovation, stating that the country will innovate in India, for India, and for the world. India has already created the framework needed to support the sector, with the Green Hydrogen Standard and Certification Scheme giving clarity and credibility, adoption of over 140 global standards, five sanctioned testing facilities, and training of more than 5,600 certified professionals.

Waivers on transmission charges, exemptions from environmental clearance, and single-window approvals are also part of the facilitation measures. Ports such as Kandla, Paradip, and Tuticorin are being developed as hydrogen hubs to strengthen India's export potential. The minister stated that green hydrogen is no longer just a theoretical concept, emphasizing that it is happening on the ground and is the fuel of today.

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