Strong asset base and policy support place India ahead in the race, says S&P Global report

India is emerging as a frontrunner in the global hydrogen industry, with particular strength in green hydrogen, according to new data compiled by S&P Global. The report noted that India’s ability to become a low-cost supplier hinge on maintaining early momentum against rivals and securing firm offtake agreements.

The analysis pointed to India’s progress in building hydrogen capabilities and highlighted the significance of the National Green Hydrogen Mission for energy transition and independence. The Union Cabinet cleared the Mission on 4 January 2023 with an outlay of Rs 19,744 crore. The programme seeks to make India a hub for production, utilisation and export of green hydrogen and its derivatives, targeting 5 million metric tonnes of output annually by 2030 and aiming to capture 10 per cent of global trade.

Industry players are looking to leverage India’s geographical advantage to export hydrogen to markets such as the European Union, Japan and South Korea. Developers also hope to establish a cost edge, which could strengthen India’s role as a global supplier.

Further signalling intent, Road Transport and Highways Minister Nitin Gadkari last week inaugurated the country’s first ‘hydrogen highways’, with fuelling stations planned along key national corridors to support long-haul freight powered by hydrogen.

The government has also issued a Rs 100 crore call for proposals to encourage start-ups working on hydrogen innovation. The scheme provides up to Rs 5 crore for pilot projects covering production, storage, transport and utilisation technologies.