India’s push toward a green hydrogen economy has gained renewed momentum with policy incentives, pilot projects, and international partnerships under the National Green Hydrogen Mission. As countries accelerate their decarbonisation commitments under the Paris Agreement, green hydrogen is emerging as a critical pillar of long-term energy transition strategies. India, being one of the world’s fastest-growing energy consumers and the third-largest emitter of greenhouse gases, faces the dual challenge of ensuring energy security while meeting climate obligations.
The National Green Hydrogen Mission was formally approved to position India as a global hub for production, usage, and export of green hydrogen. It aligns with India’s commitment to achieve net-zero emissions by 2070, as announced at COP26. The issue is in news due to new production-linked incentive schemes, public-private investments, and bilateral agreements with countries such as Japan and Germany for hydrogen supply chains.
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Green hydrogen is not merely a technological innovation; it represents a structural shift in industrial energy use, transportation, and power generation. For UPSC aspirants, the topic integrates environmental sustainability, industrial policy, renewable energy economics, and international climate diplomacy.
Table of Contents
Understanding Green Hydrogen and Its Production
Hydrogen is the most abundant element in the universe but rarely exists freely in nature. It must be extracted from compounds such as water or hydrocarbons. The environmental impact of hydrogen depends on how it is produced.
Green hydrogen is produced by electrolysing water using electricity generated from renewable sources like solar and wind. Since the process emits no carbon dioxide, it is considered environmentally sustainable.
Five Important Key Points:
- Green hydrogen is produced through electrolysis powered by renewable energy.
- It emits zero carbon dioxide during production and usage.
- It can decarbonise hard-to-abate sectors like steel, cement, and fertilisers.
- It supports energy storage and grid balancing for intermittent renewables.
- India aims to become a major exporter of green hydrogen and derivatives like green ammonia.
The scientific principle underlying electrolysis involves splitting water (H₂O) into hydrogen (H₂) and oxygen (O₂) using electrical energy. This process is central to understanding green hydrogen’s viability.
Climate Commitments and Decarbonisation Strategy
India is a signatory to the Paris Agreement and has updated its Nationally Determined Contributions (NDCs). The energy sector accounts for a significant portion of India’s greenhouse gas emissions. Transitioning from fossil fuels to renewable energy is essential to meet climate targets.
Green hydrogen addresses sectors where direct electrification is difficult. Heavy industries such as steel manufacturing rely on coal-based blast furnaces. Replacing coal with hydrogen can significantly reduce emissions. Similarly, in long-haul transport and shipping, hydrogen-based fuels offer cleaner alternatives.
India’s renewable energy capacity expansion—particularly solar and wind—provides the foundation for green hydrogen production. The synergy between renewable energy and hydrogen strengthens grid resilience and reduces dependence on imported fossil fuels.
Economic Implications and Industrial Policy
The Green Hydrogen Mission is not solely an environmental initiative; it is also an industrial strategy. By fostering domestic manufacturing of electrolysers, India aims to create a competitive value chain. This aligns with the broader “Make in India” and Atmanirbhar Bharat initiatives.
Hydrogen production requires significant infrastructure investments, including storage facilities, pipelines, and export terminals. This infrastructure development can generate employment and stimulate ancillary industries.
However, cost remains a major challenge. Currently, green hydrogen is more expensive than grey hydrogen (produced from natural gas without carbon capture). Achieving cost parity requires economies of scale, technological innovation, and policy support.
From an economic standpoint, reducing import dependence on crude oil and natural gas enhances energy security. India imports over 80% of its crude oil needs. Developing domestic hydrogen production diversifies the energy mix and reduces vulnerability to global price volatility.
Technological Dimensions and Innovation
Electrolysis technologies include alkaline electrolysers and proton exchange membrane (PEM) electrolysers. Research is ongoing to improve efficiency and reduce costs.
Hydrogen storage poses technical challenges due to its low volumetric energy density. It can be stored as compressed gas, liquefied hydrogen, or converted into derivatives like ammonia.
India’s scientific institutions and startups are actively engaged in research and development. Collaboration between public sector enterprises and private companies is essential to accelerate technological breakthroughs.
The mission also integrates with India’s broader clean energy initiatives such as the National Solar Mission and the Production Linked Incentive (PLI) scheme for renewable components.
International Cooperation and Strategic Positioning
Hydrogen is emerging as a key element of global energy geopolitics. Countries with abundant renewable resources aim to become exporters of green hydrogen. India’s geographic location and solar potential position it favorably.
Partnerships with the European Union, Japan, and Gulf countries are shaping international hydrogen supply chains. The India–Middle East–Europe Economic Corridor (IMEC) may eventually facilitate hydrogen transport infrastructure.
Participation in global forums like the International Solar Alliance enhances India’s credibility as a clean energy leader. Hydrogen diplomacy strengthens India’s strategic partnerships and supports its aspiration to lead the Global South in climate action.
Governance and Regulatory Framework
Effective implementation of the Green Hydrogen Mission requires robust governance. Clear standards for defining “green hydrogen” are necessary to prevent greenwashing.
Regulatory mechanisms must ensure safety in storage and transportation. Hydrogen is highly flammable, and safety protocols are critical.
Financial incentives, viability gap funding, and carbon pricing mechanisms can support market development. Carbon markets under the Energy Conservation (Amendment) Act may complement hydrogen deployment.
Policy coordination between the Ministry of New and Renewable Energy, Ministry of Power, and Ministry of Petroleum and Natural Gas is essential.
Challenges and Constraints
Despite its promise, green hydrogen faces several obstacles.
First, high production costs limit competitiveness. Scaling renewable capacity is essential to reduce input costs.
Second, water availability is a concern. Electrolysis requires substantial water resources, which may pose challenges in water-stressed regions.
Third, infrastructure gaps in storage and transport need significant capital investment.
Fourth, global competition may intensify as other countries also pursue hydrogen leadership.
Fifth, skill development and technological expertise must be strengthened.
Way Forward
A phased implementation strategy is necessary. Pilot projects in refineries and fertiliser plants can demonstrate feasibility.
Investing in research and development can reduce dependence on imported electrolyser technologies.
International collaboration for technology transfer and financing can accelerate progress.
Integrating hydrogen with existing renewable energy parks optimises resource utilisation.
Ensuring environmental safeguards in water usage and land acquisition is critical for sustainable development.
Ultimately, green hydrogen must be embedded within a broader energy transition roadmap rather than treated as a standalone solution.
Relevance for UPSC and SSC Examinations
For UPSC Prelims, aspirants should understand the difference between green, blue, and grey hydrogen, key objectives of the National Green Hydrogen Mission, and India’s net-zero target.
For UPSC Mains (GS Paper III), the topic is directly relevant under environment, renewable energy, infrastructure, and science & technology. It can also be linked to climate change, industrial growth, and energy security.
For GS Paper II, it connects with international climate negotiations and global partnerships.
For SSC examinations, basic conceptual clarity about renewable energy and hydrogen production is important.
In conclusion, the Green Hydrogen Mission represents a transformative opportunity for India to align economic growth with environmental sustainability. It reflects a forward-looking strategy that integrates climate responsibility, technological innovation, and strategic autonomy. While challenges remain, a carefully calibrated policy framework can enable India to emerge as a global leader in the hydrogen economy, contributing meaningfully to both national development and global climate goals.