Centre and Kerala push green hydrogen as key driver of India’s energy transition, focusing on cost, capacity, and innovation

Senior policymakers from the Centre and states have stressed the importance of green hydrogen in India’s energy transition, saying it will be key to decarbonisation, industrial competitiveness and energy security. The push comes as India looks to cut dependence on fossil fuels and meet its net-zero target by 2070.

Under the National Green Hydrogen Mission, started in January 2023 with an outlay of Rs 19,744 crore, India is targeting 5 million tonne per annum production capacity by 2030, alongside Rs 8 lakh crore investment, 6 lakh jobs and 100 GW of renewable energy. In 2024–25, production capacity of 8.62 LT a year has already been allocated to 19 companies, while tenders have been awarded for 4.12 LT per year of capacity and 1.5 GW of electrolyser manufacturing under the Sight scheme.

Despite this progress, the landed price of green hydrogen in India remains steep at Rs 397 to 560 per kg, two to three times higher than grey hydrogen, with nearly 95 per cent of the cost driven by capital expenditure and financing, especially electrical infrastructure. Such cost barriers highlight the need for cheaper technology and easier financing to make green hydrogen commercially viable.

Speaking at the green hydrogen summit 2025, Puneet Kumar, Additional Chief Secretary, Department of Power, Kerala, said the state aims to position itself as a green hydrogen hub through a mix of renewable capacity expansion, innovation clusters and pilot projects. Kerala targets 100 per cent renewable energy by 2040, seven years ahead of the national goal and net zero emissions by 2050.

Notably, Kerala has started the Hydrogen Valley Innovation Cluster spanning Kochi, Alappuzha and Thiruvananthapuram, focusing on the full value chain from electrolysers to hydrogen mobility. A proposed Cochin Hydrogen Hub, developed with GIZ, a German development agency, is expected to house 1 GW of electrolyser capacity and produce 120 kilotons of hydrogen annually for domestic and export markets.

Kumar stated that other pilots include hydrogen buses, biogenic hydrogen from water hyacinth, and a 500-kW electrolyser at Cochin International Airport. He stated the transition could attract Rs 20,000 crore in investments and create 3,600 high-value jobs while abating nearly half a million tonnes of CO₂ by 2040.

From the Centre’s side, Sudeep Jain, Additional Secretary, Ministry of New and Renewable Energy, noted that incentives for 3,000 MW of electrolyser manufacturing and 8.62 LT of hydrogen production have already been awarded, with bids for green ammonia under evaluation. Pilots are underway in steel, shipping and mobility sectors, while four Hydrogen Valley clusters, including one in Kerala, are advancing.

“The Stone Age did not end because we ran out of stones; it ended because we discovered something vital. In the same way, the fossil age did not end because we ran out of coal or oil, but because we embraced something cleaner, smarter and more sustainable,” quoted Jain with highlighting the importance of sustainable energy.