The upcoming India Energy Week 2025, scheduled to take place in New Delhi, the national capital, between February 11 and 14, will see hundreds of energy experts from various countries congregate to share ideas and insights about the sector at the central government’s flagship event dedicated to energy. In the last few years, the Indian government has put more focus on steering the nation towards cleaner and renewable energy, launching a groundbreaking USD 2.4 billion National Green Hydrogen Mission with clear production targets of 5 million metric tonnes by 2030.
According to the International Trade Administration, India’s green hydrogen market is projected to be worth USD 8 billion by 2030 and USD 340 billion by 2050. According to NITI Aayog, the think tank policy arm of the government, the electrolyzer market could be worth USD 5 billion by 2030 and USD 31 billion by 2050. With such robust growth potential, needless to say several discussions around green hydrogen will feature at IEW 2025.
According to the official brochure, three panel discussion will take place during the course of the event, dedicated to green hydrogen as the government plans to “make India the global Hub for production, usage and export of green hydrogen and its derivatives”.
The discussion around green hydrogen is also timely, given India is looking to drive a quarter of global energy growth over the next two decades.
However, India — one of the fastest growing large economies in the world — faces a unique energy challenge. While the country is projected to contribute to the growing oil demand in the aforementioned period, currently, India imports more than 85 percent of its crude oil and about 50 percent of natural gas requirements, according to Gurmeet Singh, the Director General of Federation of Indian Petroleum Industry.
India prioritises climate and has made significant advances in renewable energy. @BillGates and I discussed how India is prioritising Green Hydrogen for transportation to protect the environment. pic.twitter.com/dXmqWv9B4L
— Narendra Modi (@narendramodi) March 29, 2024
This is where the National Green Hydrogen Mission assumes importance. As per the official website of the Ministry of New and Renewable Energy, the forementioned mission will “contribute to India’s aim to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition”.
“The Mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen,” it said.
Incentives
India is blessed with abundant renewable resources, which is one of the primary reasons the country’s bid to be the green hydrogen hub cannot be ruled out. This, along with several other factors, such as government initiatives, a massive domestic market and recent surge in interest from domestic and international companies/entities in green hydrogen, is aiding progress.
To make it more lucrative, the Indian government has allotted INR 17,490 crore (approx. USD 2.02 billion) up to 2029-30 in two distinct incentive — for manufacturing of electrolysers, and for production of green hydrogen.
The government has also allotted INR 400 crore (approx. USD 46.2 million) up to 2025-26 for green hydrogen hubs and other projects. The mission, it said, will support the development of necessary infrastructure for the hubs.
What are the challenges?
A report titled ‘India – The New Global Green Hydrogen Powerhouse?‘ published in March 2024 by the Harvard Kennedy School Belfer Centre for Science and International Affairs and penned by Alessandro Gili and Nicola De Blasio, doubted India’s ability to become the leader in green hydrogen sector.
“With an installed capacity of 132 GW, renewables comprise about 1.8 percent of India’s energy mix (3.6 percent, including hydropower) and over 40 percent in the power sector. Although installed capacity has grown at an average pace of 17.3 percent annually over the past few years, it is estimated that India will require more than $500 billion in new investments to achieve its renewable targets by 2030, namely 500 GW of installed renewable energy (280 GW of solar and 140 GW of wind power). This is a tall order considering that investments have averaged only $13-14 billion annually,” the report pointed out.
“Furthermore, to produce 5 million tons of green hydrogen a year, India would require between 100 and 125 GW of additional new renewables, doubling today’s installed capacity. Therefore, the Central Government must be able to streamline decision-making across states and incentivize new infrastructure deployment by de-risking investments in order to achieve its goals,” it further said.
Green hydrogen diplomacy
India is pursuing a green hydrogen diplomacy to bolster its position in the international market. New Delhi has developed strategic partnerships with various countries, including Japan, Australia, and the US, to lower production costs and drive technological innovation for a green hydrogen supply chain in the Indo-Pacific region.
India’s key collaborations also include Gulf countries like Oman, the UAE, and Saudi Arabia. Agreements with these countries also address grid interconnection and the creation of resilient supply chains.
Delighted to meet the President of Singapore, Mr. @Tharman_S, once again. I shared with him India’s recent advancements in clean transportation, energy transition, and road infrastructure.
— Nitin Gadkari (@nitin_gadkari) January 16, 2025
We agreed to explore further collaboration in sustainable aviation fuel, green hydrogen,… pic.twitter.com/UlDvPHvf3B
Additionally, India-based Adani Group is investing in solar and wind power in Morocco for green hydrogen production to meet European demand.
New Delhi is also in negotiations with the European Commission to supply up to 10 million tons of green hydrogen annually, forming a significant part of the EU-India Clean Energy and Climate Partnership. The EU’s 300 billion Euro (USD 310 billion) Global Gateway plan could leverage India’s green hydrogen capacity to counter China’s Belt and Road Initiative (BRI). Through the India-Middle East-Europe Economic Corridor (IMEC), green hydrogen is expected to be transported to the EU via pipelines and shipping routes.
In collaboration with the EU, India is also improving its renewable energy capacity and enhancing Indo-Pacific value chains. The EU-India Global Gateway Conference has set plans to finance green hydrogen projects in India, particularly in the Himalayan states. The European Investment Bank (EIB) has pledged 1 billion Euro (USD 1.03 billion) to support green hydrogen initiatives, aiming to develop large-scale hubs across India.
India-Singapore collaborations
On January 17, India’s External Affairs Ministry announced that the country is partnering with Singapore on establishing a green energy corridor.
The MEA, while making the announcement, said India is looking at boosting cooperation in areas like green hydrogen, green shipping, semiconductor and manufacturing.
Jaideep Mazumdar, Secretary (East) in the MEA said there is already work going on for setting up a green hydrogen corridor between the eastern part of India and Singapore.
The announcement, made during the state visit of Singapore President Tharman Shanmugaratnam, coincided with the city-state signing a series of MoU with the eastern Indian state of Odisha, including one about green hydrogen.
An MoU was signed between Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) and Sembcorp Green Hydrogen India Private Limited (SGHIPL) of Singapore to explore the development of a production facility for green hydrogen and its derivatives, with an anticipated production capacity of 720,000 metric tonnes per annum.
The facility, to be strategically located in Odisha, is expected to generate over 2,000 employment opportunities during its operational phase, Sembcorp said.
