India Must Focus on Cost, Scale to Unlock Green Hydrogen Potential, Says Minister

India must prioritise cost reduction and competitiveness in green hydrogen to unlock its full potential as a clean fuel and driver of long-term energy security, Minister of State for Power and New & Renewable Energy, Shripad Yesso Naik, said on Thursday.

Speaking at the CII International Business Conclave on Green Hydrogen, Naik argued that scaling the fuel will depend less on subsidies and more on cost economics. “If we focus on cost reduction and making green hydrogen competitive, offtake will take care of itself,” he said.

Green hydrogen is at the forefront of India’s decarbonisation strategy, which targets 500GW of non-fossil energy capacity by 2030 and net-zero emissions by 2070. Its application is particularly relevant in hard-to-abate sectors such as steel, cement, shipping and heavy transport.

The government has announced incentives, backed domestic manufacturing, and created demand across refining and fertiliser sectors. Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, tenders have been floated for 42,000 metric tonnes of green hydrogen annually for refineries and over 720,000 metric tonnes of green ammonia for fertiliser production.

India is also working with partners including the EU, Japan, Singapore, Germany and the Netherlands on certification frameworks, storage, transport and trade infrastructure. A proposed Rotterdam–India–Singapore Green Energy Corridor is among the international projects exploring green shipping and clean fuel logistics.

Domestically, pilot projects are underway in steel production, including trials in blast furnaces and direct reduced iron (DRI) processes. In the transport sector, 37 hydrogen-fuelled vehicles are being tested alongside nine hydrogen refuelling stations. In shipping, a 750-cubic-metre green methanol bunkering facility is under development at the V.O. Chidambaranar Port in Tamil Nadu.

Despite the momentum, the sector faces obstacles. “The path ahead is promising, but also fraught with challenges—deficient infrastructure, cost disparities, forecasting gaps and regulatory uncertainty—all of which require coordinated efforts,” Naik said.

He highlighted decentralised green hydrogen production as a key opportunity, especially for India’s network of MSMEs and industrial clusters. “Distributed models can unlock local demand and drive bottom-up growth. They will strengthen domestic consumption and ensure more regionally balanced access to green hydrogen.”

The central government is supporting the development of green hydrogen corridors across the country, while several states are streamlining permissions and building enabling infrastructure. But long-term success will depend on an integrated national framework, effective state-level implementation, and a skilled workforce.

“We urge Indian industry to invest in R&D, manufacturing, infrastructure, and talent development,” Naik said, adding that India welcomes partnerships with global companies, governments, and financiers to scale green hydrogen innovation