India aims to become fastest-growing low-cost green hydrogen producer by 2030

India is ambitiously targeting to become the world’s lowest-cost producer of green hydrogen by 2030, aiming to slash production costs from approximately $4.50 per kilogram to $1 per kilogram. This goal, articulated by former NITI Aayog CEO Amitabh Kant at the National Green Economy Conclave organised by the Council on Energy, Environment and Water (CEEW), positions green hydrogen as a cornerstone in India’s transition towards a more sustainable, low-carbon economy.

Kant outlined that achieving a $1 per kg production cost is not merely a cost target but a strategic move that can catalyse transformative impacts across several high-emission sectors, including steel, fertilisers, mobility, and heavy transport. Advancements under the National Green Hydrogen Mission, combined with India’s rapid expansion in solar capacity and falling renewable energy tariffs, are driving this trajectory. According to Kant, green hydrogen’s potential extends beyond energy substitution; it represents an opportunity to foster clean manufacturing, accelerate deep decarbonisation, and stimulate innovation within the circular economy, including materials recycling, bioeconomy, and green urban infrastructure.

The National Green Hydrogen Mission aims to produce 5 million tonnes of green hydrogen annually by 2030, supported by an ambitious 125 GW of renewable energy capacity, particularly solar and wind. These targets reflect India’s intent to integrate sustainability deeply into infrastructure, manufacturing, and mobility sectors, aligning with the country’s long-term growth vision to ‘grow fast but responsibly.’ Kant emphasised urban planning reforms designed around people rather than vehicles, promoting green, inclusive cities built around public transport, an approach significantly divergent from previous fossil-fuel-reliant development models.

The economic potential outlined by CEEW’s analyses bolsters this vision, showing that India’s green energy transition could generate up to 48 million jobs, attract investments totalling $4 trillion, and unlock a $1.4 trillion market opportunity by 2047. This scale of transformation is being compared to the economic reforms of 1991, underscoring the pivotal nature of the green hydrogen pathway.

Supporting infrastructure developments are already underway. For example, Adani Energy Solutions recently secured a $325 million project to develop power transmission systems in Gujarat to support a green hydrogen and ammonia manufacturing facility at Mundra. This infrastructure enhancement is critical, as India’s green hydrogen production capacity will require robust renewable energy transmission to avoid bottlenecks in project delivery.

Corporate collaboration is also gaining momentum. Bharat Petroleum Corporation Limited (BPCL) has partnered with Singapore’s Sembcorp to develop green hydrogen and renewable projects across India. This joint venture aims to reduce fossil fuel dependency and is part of India’s target to reach 500 GW of clean energy capacity by 2030. Similarly, Indian Oil Corporation (IOC) is upgrading its Panipat refinery to produce sustainable aviation fuel (SAF) and green hydrogen, with plans indicating green hydrogen prices currently at around $4.64 per kilogram. IOC’s projects align with national policy that envisions half of refining hydrogen needs to be met through green hydrogen by 2030, reinforcing cleaner fuel use in transport and industrial sectors.

India’s competitive advantage in this space is supported by some of the world’s most cost-effective renewable energy, abundant solar irradiance due to its equatorial location, and a growing domestic manufacturing ecosystem. Industry reports suggest the global green hydrogen market is projected to grow rapidly, with India’s share valued at nearly $2.8 billion by 2030, reflecting the nation’s favourable growth trajectory.

The National Green Hydrogen Mission also anticipates substantial socio-economic gains, including the creation of 600,000 direct jobs by 2030 and significant reductions in fossil fuel imports, estimated at over €11 billion. The government expects to attract more than €90 billion in investments dedicated to green hydrogen infrastructure and technologies.

Nonetheless, reaching these ambitious goals will require continued policy support to reduce production costs further, enhance electrolyser capacity, which the government aims to increase to 15 GW by 2030, and develop circular economy strategies to minimise import dependency on critical raw materials like lithium, nickel, and cobalt, as highlighted by experts at CEEW.

India’s strategic move to establish itself as a global green hydrogen leader is part of a broader narrative of sustainable industrial decarbonisation, presenting substantial opportunities for entrepreneurs, investors, and policymakers dedicated to reshaping the energy and manufacturing landscape. If India successfully aligns its renewable energy scaling, infrastructure development, and policy frameworks with these targeted ambitions, it could indeed emerge as a global exemplar in low-cost green hydrogen production and sustainable economic growth.