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The Hydrogen Horizon: How India is Shaping the Clean Energy Future
The global race to cut emissions from hard-to-abate sectors such as steel, fertilisers, shipping, aviation, and long-haul transport is underway, with green hydrogen emerging as the decisive fuel. 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.
India’s advantage rests on five decisive strengths. First, India offers globally unmatched rates for round-the-clock renewable energy, with prices ranging from ₹4.60 to ₹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 momentum behind India’s green hydrogen push is already becoming visible. 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, L&T, and others 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 ₹55.75 per kilogram, among the most competitive globally. Complementing these results, the Indian Oil Corporation has awarded a landmark project at its Panipat refinery in Haryana: a 10,000 tonnes per annum green hydrogen facility to be executed by L&T Energy Green Tech, with a tax-inclusive price of USD 4.5 per kilogram over 25 years. Meanwhile, Bharat Petroleum has partnered with Singapore’s Sembcorp to develop green hydrogen and green ammonia projects in India. While it is true that some tenders have faced delays and retendering, which is inevitable in an emerging industry, the trajectory is clear: India is moving from ambition to
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