India’s green hydrogen costs move towards global competitiveness: Pralhad Joshi

India’s green hydrogen sector is moving towards greater cost competitiveness, with the lowest discovered bids reaching Rs 279 per kg for green hydrogen and Rs 49.75 per kg for green ammonia, Union Minister for New and Renewable Energy Pralhad Joshi said.

Speaking via video message at S&P Global Energy’s Horizons Clean Energy Expansion India 2026 conference, Joshi said the recently discovered prices indicate that Indian green hydrogen is becoming increasingly competitive with international costs.

National Green Hydrogen Mission expands production capacity

Under the National Green Hydrogen Mission, the government has awarded incentives for approximately 8.62 lakh tonnes per annum of green hydrogen production capacity and 3,000 MW per annum of domestic electrolyser manufacturing capacity.

The mission has an outlay of Rs 19,744 crore and seeks to establish India as a global hub for the production, use and export of green hydrogen and its derivatives.

Joshi said the sector is being supported by the expansion of India’s renewable energy capacity and efforts to build domestic manufacturing capabilities. According to the minister, India’s non-fossil fuel-based power capacity has crossed 304 GW, while solar capacity has exceeded 160 GW. The country also has around 414 GW of manufacturing capacity, he said.

Government targets domestic green hydrogen demand

The government is also working to develop domestic demand for green hydrogen, particularly in sectors that currently depend on fossil fuels.

Joshi said 30 kTPA of green hydrogen production capacity had been awarded for use by refineries. The initiative is intended to help establish domestic demand, reduce dependence on imported fossil fuels and support India’s energy security.

The government is also backing pilot projects in sectors including steel and hydrogen-based mobility, alongside the development of refuelling infrastructure and testing facilities. Joshi said the first commercial projects were beginning to take shape.

Certification framework introduced for green hydrogen

As the market develops, Joshi highlighted transparency and stakeholder confidence as important factors for the growth of India’s green hydrogen industry.

India has introduced the Green Hydrogen Certification Scheme and the India Green Hydrogen Certification Order to establish a framework for transparent certification of domestically produced green hydrogen.

Joshi said platforms that bring together policymakers, industry participants, investors and international partners could help provide the information and confidence needed for the emerging market to develop.

He added that the government would continue working with industry to address bottlenecks and maintain a stable and predictable policy framework. According to Joshi, the infrastructure and ecosystem being developed in India could also support the country’s international partners.