India Green Hydrogen Market
India is the third largest global CO2 emitter, accounting for 7% of global CO2 emissions. Green hydrogen, produced using renewable energy sources like solar and wind, offers a chance to curb these emissions and achieve energy independence. This aligns with the Indian government’s ambitious targets for green hydrogen production under the National Hydrogen Mission. This mission aims to increase green hydrogen’s share in India’s total hydrogen demand to 46% by 2030, creating a sizable market for green hydrogen production and associated technologies.
The initial outlay for the mission will be nearly $2.4 billion, including an outlay of $2.1 billion for the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, which includes incentives for manufacturing of electrolyzers and production of green hydrogen, $176 million for pilot projects, $48 million for R&D, and $46 million towards other mission components. The objective of the mission is to develop green hydrogen production capacity of five million metric tons per annum by 2030.
India’s abundant land and a skilled workforce facilitates the large-scale deployment of renewable energy plants, which are the cornerstone of green hydrogen production. The country aims to become a global hub for green hydrogen derivatives, catering to international markets seeking clean energy solutions. The burgeoning domestic demand for green hydrogen across various sectors presents another exciting opportunity. Refineries, steel manufacturers, and transportation providers are increasingly looking to adopt clean fuels. The government is promoting the use of green hydrogen for blending in compressed natural gas (CNG) for city buses. This creates a market for not just green hydrogen production but also for hydrogen storage, transportation, and dispensing infrastructure.
India’s green hydrogen market is projected to be worth $8 billion by 2030 and $340 billion by 2050. According to NITI Aayog, the think tank policy arm of the Indian government, the electrolyzer market could be worth $5 billion by 2030 and $31 billion by 2050. Policy initiatives like production subsidies, tax breaks, and setting up of green hydrogen corridors are providing a much-needed impetus to the sector. These policies are attracting significant interest from both domestic and foreign players. Despite challenges, such as cost competitiveness, infrastructure gaps, and regulatory hurdles, India is looking to position itself as a global leader in green hydrogen production and utilization. U.S. companies can establish a strong foothold in this growing market while contributing to India’s clean energy goals.
For entry into the Indian market, finding the right local partner or establishing a local presence is important, and the U.S. Commercial Service team is ready to assist.
India’s U.S. Commercial Service team can help with your market entry strategies. If you wish to pursue market opportunities in this region, please contact the renewable energy team at the U.S. Commercial Service in India or reach out to your local U.S. office.