India’s green hydrogen capacity ‘likely’ to reach target of five million tonnes per year by 2030: minister
Source：hydrogeninsight
India’s National Green Hydrogen Mission is targeting five million tonnes of green hydrogen production per year by 2030 — an ambition that even senior officials have warned may be out of reach as Indian developers grapple with cost and infrastructure challenges that have caused delays elsewhere in the world.
But according to the Indian government, achieving this target is not just still possible, but probable.
“India’s green hydrogen production capacity is likely to reach five million metric tonnes per annum by 2030,” said Shripad Yesso Naik, minister of state at the Ministry for New and Renewable Energy (MNRE) yesterday (Tuesday).
In a written statement to the Indian parliament’s upper house, Rajya Sabha, Naik emphasised that the government led by Narendra Modi has taken “significant steps” to reduce costs, including awarding a combined 44bn rupees ($490m) in subsidies to 15 companies to commence electrolyser manufacturing in the country.
These companies have pledged to build 15GW of domestic electrolyser manufacturing capacity, which the Indian government believes will reduce costs.
Naik added that India has awarded incentives to 18 green hydrogen producers to make a total of 862,000 tonnes per annum, while two firms have additionally been subsidised to make 20,000 tonnes per annum for use in refineries.
In addition, India has offered green hydrogen developers bringing projects online before 2030 an exemption from inter-state grid transmission charges, he said.
India’s two production subsidy auctions, the results of which were announced in January 2024 and March 2025 respectively, granted per-kg premiums of up to 39.67 ($0.44).
Even so, India’s efforts to reduce costs certainly bore fruit in its inaugural reverse auction for green ammonia this year, which saw companies bid to supply 13 fertiliser sites across the country at startlingly low prices.
The auction’s winning bids ranged from 64.74 rupees per kilogram (around $734 per tonne) all the way down to 49.75 rupees per kilogram ($564 per tonne).
The lion’s share of the 724,000 tonnes of annual ammonia supply that had been put out to tender was won by renewables developer ACME, which won six bids for a combined 370,000 tonnes a year.
However, experts have stressed that many of the winning projects have also been able to stack subsidies from state and national government in India, which could be why they were able to achieve such low prices.
In addition, although there are several large-scale projects in development, there are only a handful known to have passed final investment decision (FID) or begun construction.
One of the biggest to have reached FID is AM Green’s renewable H2 and ammonia project in Andhra Pradesh. The first phase, for which FID was taken in 2024, is for 1.3GW of electrolysers producing one million tonnes of green ammonia for export to Europe.
And earlier in 2025, Indian conglomerate JSW formally commissioned a 3,800 tonnes-per-year green hydrogen plant, the output from which will be supplied to JSW’s steelworks in Vijayanagar, Karnataka for use in a direct-reduced iron (DRI) plant.