India Says It Has Taken Many Steps to Cut Green Hydrogen Costs

India Says It Has Taken Many Steps to Cut Green Hydrogen Costs

February 4, 2026

The Indian government has outlined a range of measures to reduce the cost of producing green hydrogen as it pushes to make the country a major global producer, Union Minister of State for New and Renewable Energy Shripad Yesso Naik told Parliament in a written reply. Officials said these actions are part of the National Green Hydrogen Mission and aim to encourage investment, expand capacity and make clean hydrogen more affordable for industry and export markets.

The government anticipates that India’s green hydrogen production capacity could reach 5 million tonnes per year by 2030 under the mission’s framework. To support this, incentives have been awarded for both electrolyze manufacturing and hydrogen production, with 15 companies granted a collective 3,000 MW per annum of electrolyser capacity receiving financial support totalling around ₹4,440 crore. Another 18 firms have been approved to produce a combined 862,000 tonnes per year of green hydrogen, and two companies are backed to supply green hydrogen to refineries with a total of 20,000 tones per year capacity, the minister said.

In addition to production and manufacturing incentives, the government highlighted exemptions from Inter-State Transmission System (ISTS) charges for 25 years for green hydrogen and green ammonia plants that are commissioned by the end of 2030 and use renewable energy. This long-term charge relief is intended to lower operational costs and attract investors to build and operate hydrogen facilities.

The Solar Energy Corporation of India has also auctioned supplies of green ammonia — a derivative of green hydrogen — amounting to over 724,000 tones per year for fertiliser companies across India, which reflects emerging commercial demand and broader uptake opportunities.

These steps are designed to create a more cost-competitive and scalable green hydrogen ecosystem in India, helping integrate renewables with industrial use and positioning the country as a leader in clean fuels and exports in the coming decade.