India Green Hydrogen

India Green Hydrogen Market Research Report: Forecast (2025-2030)

By Technology (Proton Exchange Membrane Electrolyzer, Alkaline Electrolyzer, Solid Oxide Electrolyzer), By Energy Source (Solar, Wind, Other Renewable Sources), By End Users (Power Generation & Energy Read more

  • Energy
  • Aug 2022
  • 92
  • EN45085

Market Overview

Hydrogen is a prominent source of energy and shares a long history, finding applications in different aspects, right from powering combustion engines years back to being an important part of the modern-day refining industry. It is a light, easy to store, and energy-dense element that does not directly generate emissions or affects greenhouse gases, but for it to become green & clean, hydrogen needs to find utilization in areas where its previous application has been entirely absent, like building, transportation, and power generation among others.

Green Hydrogen is nothing but hydrogen generated by splitting and separating oxygen from water using renewable electricity to expand the application. As the government of different countries, including India, are keenly focusing on exploring the potential of its use, green hydrogen is enjoying an unparalleled political & business momentum to scale technologies and reduce the cost of hydrogen, thereby expanding its utilization.

Market Insights

The India Green Hydrogen Market is projected to grow at a CAGR of almost 20% during the forecast period, i.e., 2025-30. The market will be driven by the rapidly escalating concerns of the government on the exponentially rising carbon emission and their focus on reducing its effects on the environment, thereby bringing sustainability. It, in turn, is augmenting the need to develop & utilize clean resources for various applications across industries and demonstrating greater inclination toward clean elements like green hydrogen.

Besides, with the growing need to bring energy efficiency & minimize dependency on fossil fuels, the government of India is supporting the green hydrogen industry substantially, viewing it as the solution to mitigate emissions while producing power. Moreover, conventional hydrogen has a prevalent role across different sectors in India, owing to which, its demand is quite high. Consequently, carbon emissions have been widespread across several cities in India.

Report Coverage Details
CAGR (2025-2030) 20%
Key Companies Profiled Air Products, Adani Green Energy Ltd, Reliance Industries Ltd., Other Potential Players (Bharat Petroleum Corporation Limited (BPCL), JSW Energy Neo Ltd, Others)
Unit Denominations USD Million/Billion

 

Hence, more than any other country, India needs green hydrogen to minimize air pollution, reduce the financial burden from energy imports, and decarbonize the environment rapidly. Such aspects are generating growth opportunities for the stakeholders to invest substantially in the industry and expand their research, development, and production initiatives, backed by massive government support through favorable policies & funding, leading the overall market toward a substantial rise in the coming years. For Instance:

  • On 15 August 2021, Prime Minister Narendra Modi formally announced the inauguration of the "National Hydrogen Mission," aiming to generate carbon-free fuel from renewables and make the country a global hub for the production & export of green hydrogen.

Market Segmentation

By End Users

  1. Power Generation & Energy Storage
  2. Automotive & Transportation
  3. Mining
  4. Refineries & Petrochemicals
  5. Others (Food & Beverage, Steel, Cement Industries, etc.)

Here, industries like Petrochemicals are anticipated to make substantial contributions to the expansion of the India Green Hydrogen Market and generate lucrative opportunities for the leading companies during the forecast period. The growth attributes principally to the growing refining activities across the petroleum industry, demonstrating high utilization of hydrogen, thereby generating opportunities for cleaner alternatives like green hydrogen for desulphurization of products.

Besides, the presence of stringent government regulation to limit sulfur from petroleum products augment the demand for hydrogen, green hydrogen might project profitability in the industry and drive the market through 2030.

Moreover, as the ill effects of hydrogen are elevating substantially, the demand for green hydrogen in petrochemical applications is widening too. It is where the active participation of India to slash the production cost of green hydrogen and encourage industries like petrochemicals to access cheaper & cleaner energy would help bring the green hydrogen transition and expand the overall market in the future. For Instance:

  • Reliance Industries & Adani Group have pledged to produce green hydrogen at the cheapest cost in the world at $1 per kilogram, down from the existing cost of $5-$6.

Based on Technology:

  • Proton Exchange Membrane Electrolyzer
  • Alkaline Electrolyzer
  • Solid Oxide Electrolyzer

Here, Alkaline Electrolyzer is anticipated to dominate the India Green Hydrogen Market with the largest share during the forecast period. It owes principally to the capabilities of this technology to offer longer operating hours than other technologies. It is backed by the use of alkaline liquid solutions containing potassium or sodium hydroxide as its electrolyte. Moreover, the problem with availability and mining of rare earth metals needed for the manufacturing for PEM electrolyzer automatically pushes the demand for alkaline electroyzer also adds up to its high demand, contributing to the overall market growth through 2030. 

Besides, with the massive government support for the production of green hydrogen, several leading players are actively participating in the market and demonstrating mergers & acquisitions, partnerships, agreements, etc., for the development of advanced technology and testing the feasible capacity of the new energy has been contributing to the industry expansion. For Instance:

  • In 2022, Indian Oil Corporation, dominating petroleum products in the country, teamed up with two private companies, L&T (Larsen & Toubro Ltd) & ReNew Power. This partnership is to launch a joint venture for the development of green hydrogen and later expand the manufacturing & sales of electrolyzers used in the production of green hydrogen.

India Green Hydrogen Market Research Report: Forecast (2025-2030)

Tapping Opportunities in Green Hydrogen Laid in the Master Plan

While Hydrogen represents almost 10% of global consumption in India, the potential for green hydrogen is significant in the future. The Ministry of Power reveals that energy debts are increasing substantially & have nearly been wiped out, indicating an energy surplus for the country in the future. Therefore, it is becoming crucial to utilize the additional renewable energy capacities & replace fossil fuels across different end-user industries.

The extensive use of green hydrogen in such industries is likely to offer several perks, like creating a potentially high demand for electricity produced from the targeted 500 GW of installed renewable capacities by 2030. Moreover, industries utilizing green hydrogen & green ammonia shall also comply with the carbon border tax mechanism or the RED II directive while exporting these resources to western countries.

Hence, it can be concluded that green hydrogen has high untapped potential in the future. While exploring these opportunities and adopting green hydrogen, the government of India and end-user industries must collaborate. Yet, the initial push is needed from the government to encourage the production of these fuels as a cleaner alternative.

  • The Indian Institute of Science (IISc), Bengaluru, is working on the development of new technology for the production of green hydrogen. It aims to use biomass to produce an estimated 100 grams of hydrogen from one kilogram.

Several prominent players throughout the country are actively participating and planning on expanding & exploring the potential of Green Hydrogen in India.

  • In August 2022, Shell India & Ohmium International announced their collaboration for green hydrogen projects. Ohmium has its only manufacturing facility for electrolyzers in Bengaluru and is very active in India. Shell plans on utilizing electrolyzers to produce green hydrogen.
  • In March 2022, Adani Group, affirmed its Memorandum of Understanding (MoU) with subsidiaries of Maire Tecnimont, including NextChem, Stamicarbon, and MET Development (MET DEV) to develop green hydrogen projects across different locations to industrialize green chemistry & circular economy sectors in India.
  • Reliance Industries announced their hydrogen plans to attain net zero by 2035. The company also plans on replacing fuels used in transportation with clean electricity & hydrogen. Using the proprietary technologies, the company aims to fuel valuable petrochemicals & building blocks.

Green Hydrogen holds the capability to make India a front-runner to tap opportunities in the coming years, alongside its goal to attain net-zero emissions. Such initiatives shall help the country to take further steps toward clean energy sources in the future.

Regulatory Landscape of India Green Hydrogen Market

  • Transmission Charge Waiver

The Ministry of New & Renewable Energy (MNRE) in India shall establish a single portal for all statutory clearances & permissions associated with the production, transportation, storage & distribution of Green Hydrogen across locations. The concerned authorities must provide clearance & permission in 30-day time-bound manner from the application date. 

The government is setting up zones for the establishment & production of Green Hydrogen/Green Ammonia, where the producers are allotted bunkers near the ports for convenient export & shipment. The land-based storage, on the other hand, shall be offered to the Pod Authorities at applicable charges.

  • Production, Storage, and Distribution

The Ministry of Power in India has brought several policies & subsidies to back the expansion of the Green Hydrogen industry for reducing emissions through orders to facilitate the transition. Here, the producer of Green Hydrogen and Green Ammonia from the projects commissioned before 30 June 2025 for 25 years would receive a waiver on inter-state transmission charges by the government. 

  • Manufacturing Zone Allotment

Role of State Governments in the India Green Hydrogen Market

On the geographical front, state governments in India are actively participating in boosting the green hydrogen industry by their active initiatives for introducing green hydrogen-based pilot projects across different corners of the country.

Indian Oil is at the forefront of the green hydrogen revolution and plans to establish the country’s first green hydrogen production unit in Mathura refinery, Uttar Pradesh, to process crude oil. The company also plans to utilize low-cost wind power from Rajasthan and channel it to Mathura for this production plant.

On the other hand, the market shall also witness swift momentum across Ladakh, backed by the declaration of National Thermal Power Corporation (NTPC) Limited to set up the first green hydrogen fueling station in the union territory. The company also plans to establish a pilot project for blending hydrogen with existing gas as a first-of-its-kind hydrogen refueling station to power entirely by renewables in Leh using a stand-alone 1.25 MW solar system.

Possible Restraint:

  • High Cost Associated with the Establishment of Green Hydrogen Plant

Since green hydrogen is a relatively newer concept and still needs substantial research & development and adoption across industries, the initial cost involved with its production is very high. Additionally, improper transportation & storage infrastructure for these elements are also challenging the production & utilization of green hydrogen and affecting investments in the industry. Such factors are prominently restraining the fledged growth of the Green Hydrogen Market across India. 

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the India Green Hydrogen Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the India Green Hydrogen Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the India Green Hydrogen Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the India Green Hydrogen Market study?

Frequently Asked Questions

A. The India Green Hydrogen Market is projected to grow at a CAGR of almost 20% during 2025-30.

A. The improper transportation & storage infrastructure for these elements are challenging the production & utilization of green hydrogen across industries in the country and impacting investments. This aspect might restrain the fledged growth of the India Green Hydrogen Market through 2030.

A. Petrochemicals are anticipated to emerge as an area of remunerative opportunities for the leading players in the India Green Hydrogen Market during the forecast period.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
    4. Market Definition
  3. Executive Summary
  4. India Hydrogen Industry Outlook
  5. India Green Hydrogen Market Porters Analysis
  6. India Green Hydrogen Market Standards, Regulations, and Policies
  7. India Green Hydrogen Market Consortiums & Associations
  8. India Green Hydrogen Market Trends & Insights
  9. India Green Hydrogen Market Dynamics
    1. Drivers
    2. Challenges
  10. India Green Hydrogen Market Government Support & Opportunities
  11. India Green Hydrogen Market Outlook, 2025-30F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. By Volume (Thousand Tons)
    2. Market Share & Analysis
      1. By Technology
        1. Proton Exchange Membrane Electrolyzer
        2. Alkaline Electrolyzer
        3. Solid Oxide Electrolyzer
      2. By Energy Source
        1. Solar
        2. Wind
        3. Other Renewable Sources
      3. By End Users
        1. Power Generation & Energy Storage
        2. Automotive & Transportation
        3. Mining
        4. Refineries & Petrochemicals
        5. Others (Food & Beverage, Steel, Cement Industries, etc.)
      4. By Competitors
        1. Market Revenues
        2. Competition Characteristics
  12. India Green Hydrogen Market Key Strategic Imperatives for Success and Growth
  13. Competition Outlook (Whichever Applicable)
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. Air Products
      2. Adani Green Energy Ltd
      3. Reliance Industries Ltd.
      4. Other Potential Players
        1. Bharat Petroleum Corporation Limited (BPCL)
        2. JSW Energy Neo Ltd
        3. Others
  14. Disclaimer
India Green Hydrogen Market Segmentation