Centre says India would attract $100 bn investments in green hydrogen

India is set to become a major global hub for green hydrogen production, with the government projecting $100 billion worth of investments and the creation of more than 600,000 jobs by 2030. Union Minister of New and Renewable Energy Pralhad Joshi announced that the country is on track to achieve its target of producing 5 million tonnes per annum (mtpa) of green hydrogen by the end of the decade.

Speaking at the ‘World Hydrogen India Summit’ organised by S&P Global Commodity Insights, Joshi said India has already installed 1,100 MW of electrolyser manufacturing capacity, moving steadily towards the 3 GW annual target.

The Minister added that India’s renewable energy growth offers a strong foundation to scale up green hydrogen production for both domestic use and exports.

According to a new report by S&P Global released at the summit, hydrogen currently accounts for 1.8% of India’s energy demand, which could rise beyond 3% by 2060. Globally, hydrogen’s share in energy demand may increase from 1.7% today to over 7% by 2060, with green hydrogen supporting nearly 80% of that growth.

The government has also stepped-up research and development. About $43.3 million has been allocated for R&D, with $13 million already sanctioned for 23 projects. So far, 19 green hydrogen projects with a combined capacity of over 4,300 tonnes annually have been commissioned across sectors like steel, glass, refining and transport.

Minister of Petroleum and Natural Gas Hardeep Singh Puri underlined the role of oil and gas public sector enterprises, which plan to set up 1 mtpa of green hydrogen by 2030. He also argued that the government’s 5 mtpa production target may be a conservative estimate given the pace of progress.

Significantly, costs are already dropping. Puri highlighted that the price of green hydrogen has fallen by more than $1 per kg in recent tenders floated by state-run companies such as Indian Oil Corporation.

Launched in 2023 with an outlay of ₹19,744 crore, the National Green Hydrogen Mission (NGHM) aims to establish India as a leader in this clean fuel. With abundant renewable energy resources and a strong industrial base, experts say India is well-positioned to build a globally competitive hydrogen economy.