GS Paper 3EconomyEnvironmentScience & TechPrelims + Mains

National Green Hydrogen Mission Gathers Pace

19 May 20266 min read
Solar panels and a wind turbine representing clean energy

The Mission in Brief

Approved in January 2023 with an outlay of ₹19,744 crore, the National Green Hydrogen Mission targets at least 5 million metric tonnes of annual green hydrogen production by 2030, backed by about 125 GW of associated renewable capacity. Green hydrogen is produced by electrolysis of water using renewable electricity, unlike grey hydrogen (from natural gas) or blue hydrogen (grey with carbon capture).

  • SIGHT programme (₹17,490 crore): incentives for domestic electrolyser manufacturing and green hydrogen production.
  • Pilot projects in steel, mobility and shipping; R&D under the Hydrogen Valley initiative.
  • Green Hydrogen Standard (2023): hydrogen with well-to-gate emissions not exceeding 2 kg CO2-equivalent per kg H2.

Progress and Hurdles

  • Electrolyser manufacturing capacity of about 3 GW per year has been awarded; production incentives cover over 8 lakh tonnes per year.
  • Cost remains the binding constraint: green hydrogen at roughly USD 4–5 per kg versus grey at USD 1.5–2 per kg.
  • Demand-side pull is thin; refineries and fertiliser plants await blending mandates and carbon pricing.
  • Water stress and round-the-clock renewable supply are site-selection challenges.

Assessment

The Mission is strategically sound — hydrogen decarbonises sectors that electrification cannot — but its success depends on the cost curve. Aggregated demand through public procurement, blending obligations for refineries and fertiliser, and export offtake agreements with the EU and Japan would de-risk investment and let India's cheap solar advantage translate into a global hydrogen export position.

Test Yourself

2 graded questions · Prelims format

Question 1 of 2GS Paper 3EconomyEnvironmentMedium

With reference to the National Green Hydrogen Mission, consider the following statements:

  1. 1.It targets production of at least 5 million tonnes of green hydrogen per annum by 2030.
  2. 2.Under India's Green Hydrogen Standard, emissions must not exceed 2 kg of CO2-equivalent per kg of hydrogen.
  3. 3.Blue hydrogen is produced by electrolysis of water using nuclear power.

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