Why is News :
- Due to geopolitical tensions and global policy uncertainty, India’s green hydrogen export ambitions have weakened.
- India is now shifting focus towards building a robust domestic demand ecosystem under its National Green Hydrogen Mission.
Key Highlights
The National Green Hydrogen Mission (2023)
- Launched by the Ministry of New and Renewable Energy (MNRE).
- Budget: ₹19,744 crore.
- Target: 5 million metric tonnes (MMT) of green hydrogen production by 2030.
- Includes SIGHT (Strategic Interventions for Green Hydrogen Transition) for incentivizing electrolyser manufacturing and green hydrogen production.
Certification and Measurement
- April 2025: MNRE launched a measurement and certification framework for green hydrogen to ensure transparency and credibility at production sites.
Global Headwinds Affecting Exports
- Weakening demand in EU and US due to policy delays (e.g., rollback of US Inflation Reduction Act via “Big Beautiful Bill”).
- Lack of participation in European green hydrogen tenders (e.g., Germany’s Hintco).
- Uncertainty discourages large-scale investment in export infrastructure.
India’s Efforts to Secure Export Pathways
- Negotiations with Rotterdam, Antwerp ports for logistics access.
- FTA discussions include tariff reductions on Indian green hydrogen.
Domestic Demand Creation: The Strategic Shift
GoI aims to scale up domestic consumption in:
- Fertilizers: 8 lakh tonne tender already oversubscribed; SECI floats new 7 lakh tonne tender.
- Steel & Shipping: Pilot projects initiated
- Public transport: Hydrogen fuel cell buses tested in cities including Ladakh.
Industry Recommendations
- Mandatory sourcing mandates for sectors like fertilisers and chemicals
- Public procurement for green steel and shipping fuels.
- Blending with grey hydrogen to build transition infrastructure.
Challenges: Cost Competitiveness
- Green Hydrogen: $4–$5/kg
- Grey Hydrogen: $2.3–$2.5/kg
- High costs due to:
- Immature supply chains
- High financing and production cost
- Lack of scale economies
- CII-Bain-RMI Report suggests phased scale-up and public procurement to reduce costs.
Value Addition for Mains
Quote: “Green hydrogen is the fuel of the future, but it needs domestic traction before global traction.”
Fact: India targets zero carbon emissions by 2070—green hydrogen is central to industrial decarbonisation.
Case Study: India’s success in renewable energy scale-up (solar/wind) offers a replicable model for green hydrogen sector expansion.
| UPSC Relevance : GS2 Governance & Policy National Green Hydrogen Mission, Public-Private Partnerships GS2 International RelationsFTAs, Climate Diplomacy, Geopolitical Trade Impact GS3 Infrastructure & EnergyGreen Hydrogen as Future Fuel, Self-Reliance in Energy GS3 Environment & EconomyDecarbonisation of Industry, Net-Zero Targets |