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Govt, industry bullish on green hydrogen, but export demand falters amid global headwinds
India is positioning itself as a key player in the global green hydrogen market, backed by strong policy support and private sector investments. With ambitious targets under the National Green Hydrogen Mission, the country aims to become a hub for clean energy production and exports.
The Indian government has allocated significant funding and regulatory support to boost the production of green hydrogen—hydrogen produced using renewable energy sources. Several state governments are also offering incentives to attract investments in hydrogen manufacturing and storage infrastructure.
Leading Indian corporations, including Reliance Industries, Adani Group, and Indian Oil Corporation, have announced multi-billion-dollar plans to build green hydrogen facilities. These projects are expected to scale up production capacity in the coming years and create export-ready volumes.
However, despite the domestic enthusiasm, export demand for green hydrogen has hit a rough patch. Global economic uncertainty, geopolitical tensions, and high production costs have dampened enthusiasm in key markets such as Europe and Japan. Buyers remain cautious, leading to lower-than-expected international offtake agreements.
Industry experts note that although India has a cost advantage due to its renewable energy potential, logistical hurdles and lack of international agreements on green hydrogen certification are acting as bottlenecks. Standardization and regulatory harmonization with major importing countries remain critical.
Moreover, competition from other green hydrogen-producing nations such as Australia, Saudi Arabia, and the UAE has intensified. These countries offer strong export ecosystems and better port connectivity, making them attractive suppliers in the global marketplace.
To counter this, the Indian government is exploring long-term bilateral deals and partnerships with potential buyers. Talks are underway with the EU and Japan to ensure demand-side security through trade agreements, joint ventures, and co-funded pilot projects.
Experts believe that domestic utilization could be the next best step for India to de-risk its hydrogen sector. Integrating green hydrogen into sectors like steel, fertilizer, and refining may help absorb initial production and reduce reliance on external buyers.
In conclusion, while India remains committed to becoming a green hydrogen powerhouse, aligning export strategies with global realities and boosting domestic consumption will be key to achieving long-term sustainability and market leadership.
FAQ
Q1. What is green hydrogen and why is it important?
Green hydrogen is hydrogen produced using renewable energy sources like wind or solar. It is considered a clean fuel and crucial for reducing carbon emissions in hard-to-abate industries.
Q2. What is India’s National Green Hydrogen Mission?
The National Green Hydrogen Mission aims to make India a global hub for green hydrogen production, targeting 5 MMT annual production by 2030 with significant public and private investment.
Q3. Why is export demand for green hydrogen falling?
Export demand is faltering due to global economic uncertainty, high prices, lack of standardization, and stiff competition from other producer countries.
Q4. Which Indian companies are investing in green hydrogen?
Major companies include Reliance Industries, Adani Group, Indian Oil Corporation, NTPC, and L&T, among others.
Q5. How can India strengthen its green hydrogen exports?
India needs to focus on building global trade partnerships, aligning regulatory frameworks, investing in port infrastructure, and ensuring competitive pricing.
Publish on june 19,2025 by :selvi
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