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Energy industries

India Poised for Massive Green Hydrogen Expansion, Investments Expected to Reach Rs 10 Lakh Crore by 2030

Strategic Insights

— 2 min read

As India strives to reduce its carbon footprint and transition to cleaner energy, the country is embracing green hydrogen as a crucial component of its energy mix. A report by Avener Capital estimates that India is poised to invest Rs 10 lakh crore in green hydrogen by 2030, with the National Green Hydrogen Mission (NGHM) aiming to produce 5 million tonnes per annum (MTPA) of green hydrogen and establish 20 GW of electrolyser manufacturing capacity by the end of this decade. The SIGHT (Strategic Interventions for Green Hydrogen Transition) Programme, a key component of this initiative, has already seen significant progress, with the Solar Energy Corporation of India (SECI) awarding contracts for 8.58 lakh MTPA of green hydrogen production and 2.3 GW of electrolyser manufacturing.

Key Takeaways:

  • The National Green Hydrogen Mission (NGHM) aims to produce 5 million tonnes per annum (MTPA) of green hydrogen by 2030.
  • The SIGHT (Strategic Interventions for Green Hydrogen Transition) Programme has awarded contracts for 8.58 lakh MTPA of green hydrogen production and 2.3 GW of electrolyser manufacturing.
  • The government targets a Rs 1 lakh crore reduction in fossil fuel imports and a 50 million metric tonne cut in greenhouse gas emissions.
  • Green hydrogen demand from refining and steel sectors is projected to reach 4.5 MTPA by 2030, with the potential to replace up to 80% of fossil fuel use in these sectors.
  • The government has introduced production-linked incentives worth Rs 5,258 crore for hydrogen and Rs 4,440 crore for electrolysers under SIGHT Component II.
  • India's electrolyser capacity currently stands at under 1 GW and is expected to rise to 20 GW by 2030.
  • Key ports like Kandla, Tuticorin, and Kakinada are being developed to support green hydrogen and ammonia exports.
  • States like Maharashtra, Karnataka, and Gujarat have launched their own incentive schemes, making India a competitive global player.

Statistics:

  • Estimated investments in green hydrogen expected to reach Rs 10 lakh crore by 2030 (Avener Capital).
  • Targeted production capacity: 5 million tonnes per annum (MTPA) of green hydrogen by 2030 (NGHM).
  • Contracts awarded by SECI: 8.58 lakh MTPA of green hydrogen production and 2.3 GW of electrolyser manufacturing (SIGHT Programme).
  • Expected reduction in fossil fuel imports: Rs 1 lakh crore (government target).
  • Projected cut in greenhouse gas emissions: 50 million metric tonnes (government target).
  • Projected demand from refining and steel sectors: 4.5 MTPA by 2030.
  • Potential replacement of fossil fuel use in refining and steel sectors: up to 80% (projected).
  • Current electrolyser capacity: under 1 GW.
  • Targeted electrolyser capacity: 20 GW by 2030.

Sources:

  • Avener Capital, "India's Green Hydrogen Expansion to Reach Rs 10 Lakh Crore by 2030".
  • National Green Hydrogen Mission (NGHM), "Green Hydrogen Mission".
  • Solar Energy Corporation of India (SECI), "SIGHT Programme".
  • Government of India, "Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme".
  • Government of India, "National Green Hydrogen Mission (NGHM)".

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