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Green Hydrogen Growth Hinges on Domestic Production and Consumption
POWER & RENEWABLE ENERGY

Green Hydrogen Growth Hinges on Domestic Production and Consumption

Union Minister Hardeep Singh Puri has emphasised that India’s green-hydrogen programme will depend on building domestic demand alongside production and consumption. The approach seeks to create a commercially sustainable market in which hydrogen is produced locally, used by Indian industries and supported by suitable infrastructure, while contributing to clean-energy transition, industrial decarbonisation and energy security.

Developing reliable domestic demand is important because green hydrogen remains an emerging technology whose production costs are higher than those of conventional hydrogen derived from fossil fuels. A functioning market could give producers greater visibility over future purchases and encourage investment in electrolysers, renewable-energy capacity, storage, transport systems and related technologies. It could also help connect different parts of the value chain and support economies of scale.

India has identified green hydrogen as an option for reducing emissions in sectors where direct electrification is difficult. Refineries, fertiliser units, steelmakers, chemical producers and shipping companies have traditionally relied on fossil fuels or fossil-fuel-derived hydrogen. Replacing conventional hydrogen with hydrogen produced using renewable electricity could lower emissions, although adoption will depend on technology costs, infrastructure, regulations and competitively priced renewable power.

The National Green Hydrogen Mission provides the policy framework for developing the sector. It aims to support India as a major producer and supplier of green hydrogen while encouraging domestic consumption and manufacturing capabilities across renewable-energy generation, electrolyser production, hydrogen generation, storage, transportation and end-use applications.

Infrastructure will be essential for converting production plans into actual consumption. Hydrogen may need to be compressed, conditioned, stored and transported before reaching industrial users, requiring pipelines, refuelling facilities, storage systems and dedicated logistics networks in some applications. Export opportunities could supplement domestic demand, but a strong local market would help companies build capabilities, support industrial learning and create opportunities in equipment manufacturing, engineering, construction and technical services. Coordinated action by producers, industrial users, renewable-energy companies, manufacturers, financiers and policymakers will determine how quickly the sector progresses from early projects to large-scale deployment.

Union Minister Hardeep Singh Puri has emphasised that India’s green-hydrogen programme will depend on building domestic demand alongside production and consumption. The approach seeks to create a commercially sustainable market in which hydrogen is produced locally, used by Indian industries and supported by suitable infrastructure, while contributing to clean-energy transition, industrial decarbonisation and energy security. Developing reliable domestic demand is important because green hydrogen remains an emerging technology whose production costs are higher than those of conventional hydrogen derived from fossil fuels. A functioning market could give producers greater visibility over future purchases and encourage investment in electrolysers, renewable-energy capacity, storage, transport systems and related technologies. It could also help connect different parts of the value chain and support economies of scale. India has identified green hydrogen as an option for reducing emissions in sectors where direct electrification is difficult. Refineries, fertiliser units, steelmakers, chemical producers and shipping companies have traditionally relied on fossil fuels or fossil-fuel-derived hydrogen. Replacing conventional hydrogen with hydrogen produced using renewable electricity could lower emissions, although adoption will depend on technology costs, infrastructure, regulations and competitively priced renewable power. The National Green Hydrogen Mission provides the policy framework for developing the sector. It aims to support India as a major producer and supplier of green hydrogen while encouraging domestic consumption and manufacturing capabilities across renewable-energy generation, electrolyser production, hydrogen generation, storage, transportation and end-use applications. Infrastructure will be essential for converting production plans into actual consumption. Hydrogen may need to be compressed, conditioned, stored and transported before reaching industrial users, requiring pipelines, refuelling facilities, storage systems and dedicated logistics networks in some applications. Export opportunities could supplement domestic demand, but a strong local market would help companies build capabilities, support industrial learning and create opportunities in equipment manufacturing, engineering, construction and technical services. Coordinated action by producers, industrial users, renewable-energy companies, manufacturers, financiers and policymakers will determine how quickly the sector progresses from early projects to large-scale deployment.

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