India’s Green Hydrogen Economy Set to Attract Rs 10 Lakh Crore Investment by 2030

New Delhi, Jul 21 (KNN) India is poised for a massive green hydrogen expansion, with investments worth Rs 10 lakh crore expected by 2030, according to a report by Avener Capital.

The country’s National Green Hydrogen Mission (NGHM) aims 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.

At the heart of this transition is the Rs 17,000 crore SIGHT (Strategic Interventions for Green Hydrogen Transition) Programme.

So far, the Solar Energy Corporation of India (SECI) has awarded 8.58 lakh MTPA of green hydrogen production and 2.3 GW of electrolyser manufacturing under this initiative.

The government also targets a Rs 1 lakh crore reduction in fossil fuel imports and a 50 million metric tonne cut in greenhouse gas emissions.

Green hydrogen is expected to become crucial in decarbonising industries like fertilisers, refining, and steel. Demand from refining and steel alone is projected to reach 4.5 MTPA by 2030, with green hydrogen potentially replacing up to 80 per cent of fossil fuel use in these sectors.

Current prices range from USD 3.8/kg to USD 5.8/kg but are projected to drop to USD 0.8/kg–USD 3.3/kg by 2030 due to falling renewable energy costs and improved efficiencies.

To support growth, the government has introduced production-linked incentives: Rs 5,258 crore for hydrogen and Rs 4,440 crore for electrolysers, to be distributed over three years under SIGHT Component II.

India’s electrolyser capacity, currently under 1 GW, is set to rise to 20 GW. Key ports like Kandla, Tuticorin, and Kakinada are being developed to support green hydrogen and ammonia exports.

States such as Maharashtra, Karnataka, and Gujarat have launched their own incentive schemes, making India a competitive global player.

(KNN Bureau)