India Green Hydrogen Market Highlights – December 2025

Author: Shalini Bharti, Research Analyst

January 9, 2026

The green hydrogen environment in India is shifting from policy to practice, with robust governmental support and increasing industry involvement. Under the National Green Hydrogen Mission, capacity awards, pilot deployments, and cost-reduction measures are being rolled out concurrently to create a scalable and competitive ecosystem. This extends across the entire value chain, including the manufacture of electrolyzers, the production of hydrogen and its derivatives, such as green ammonia, and final consumption. Collectively, these measures indicate India's ambition to become a global hub for green hydrogen production, consumption, and export.

Government Highlights Key Progress Under National Green Hydrogen Mission

On December 8, 2025, the Government of India is implementing the National Green Hydrogen Mission (NGHM), with an objective to make India a global hub of production, usage, and export of green hydrogen and its derivatives.

The following initiatives have been undertaken under the Mission:

Capacity Awards and Commercial Progress

Category

Awarded Capacity / Projects

   Coverage

Electrolyser Manufacturing

3,000 MW per annum

Domestic manufacturing scale-up

Green Hydrogen Production

8,62,000 tonnes per annum

Multiple-award entities

Green Ammonia Supply (a derivative of Green Hydrogen)

7,24,000 MTPA

13 fertilizer units (SECI (Solar Energy Corporation of India) price discovery)

Refinery Supply

20,000 tonnes per annum

Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited

Sectoral Deployment & Pilot Initiatives

Sector

Key Developments

Steel

Five pilot projects have been sanctioned to demonstrate the use of green hydrogen in steelmaking processes.

Ports & Shipping

V. O. Chidambaranar Port Authority awarded a project for the development of green methanol bunkering and refueling facilities at the port.

Mobility

Five pilot projects have been approved for the deployment of 37 hydrogen-fuelled vehicles, supported by 9 hydrogen refuelling stations across 10 routes in India.

Hydrogen Valleys

Four Hydrogen Valley Innovation Clusters have been awarded, covering Jodhpur, Odisha, Pune, and Kerala.

R&D Scheme

Twenty-three (23 nos.) projects have been sanctioned as part of the Research and Development (R&D) scheme of NGHM

Testing Facilities

Five projects (5 nos.) have been sanctioned for the establishment of testing 

facilities.

Government Highlights Progress Under National Green Hydrogen Mission to Reduce Green Hydrogen Costs

Mission Overview

On December 16, 2025, the Ministry of New and Renewable Energy (MNRE) is implementing the National Green Hydrogen Mission (NGHM), with an objective to make India a global hub of production, usage, and export of Green Hydrogen and its derivatives.

India’s Green Hydrogen production capacity is likely to reach 5 Million Metric Tonnes per annum by 2030.

Significant steps have been taken under NGHM for reducing the cost of green hydrogen, details of which are provided below:

Incentive Schemes – Capacity & Funding

Scheme

Companies Awarded

Capacity Awarded

Incentive / Support

Electrolyser Manufacturing

15

3,000 MW per annum

INR 4,440 crore (~USD 492.4 million)

Green Hydrogen Production

18

8,62,000 tonnes per annum

Production-linked incentive

Refinery Procurement

2

20,000 tonnes per annum

Offtake support

Source: Ministry of New and Renewable Energy

Key Cost Reduction Measures

  • 25-year exemption from Inter-State Transmission System (ISTS) charges for projects commissioned by 31 December 2030
  • SEZ duty benefits under Section 26 of the SEZ Act, 2005, for installation and O&M of renewable energy equipment
  • Long-term policy certainty to improve project bankability and reduce the levelized cost of hydrogen

R&D and Technology Scale-Up Support

MNRE is supporting a Research and Development project titled ‘Scale-up of Perovskite Tandem Solar Cells (Phase-I)’ with a total project cost of INR 83.19 crores (~USD 9.23 million) for scale-up and indigenisation of perovskite tandem solar cell technology.

  1. GreenH2 INDIA Expanded into Southern India through a strategic partnership with Bangalore-Based Champak Investments

On December 1, 2025, GreenH2 INDIA, the Indian branch of New Energy Opportunities Limited (NEO), announced its formal expansion into Southern India through a strategic partnership with Bangalore-based Champak Investments. The partnership marks a major milestone as the company accelerates the deployment of scalable clean energy and hydrogen-based technologies across one of India’s most advanced industrial regions.

  1. IIT Madras Researchers Provide Roadmap for Sustainable Green Hydrogen Production in India

On December 16, 2025, researchers from the Indian Institute of Technology Madras (IIT Madras) conducted a comprehensive study to boost green hydrogen production in India.

India is committed to achieving net-zero carbon emissions by 2070 and aims to generate 50 per cent of its electricity from non-fossil fuel sources by 2030. Green hydrogen, a clean fuel produced from renewable energy, can play a central role in reducing emissions from sectors that are traditionally difficult to decarbonize, such as industry, transport, and buildings.

  1. KPI Green Energy gets INR 128 Crore (~USD 14.19 million) order from NTPC

On December 24, 2025, KPI Green Energy announced that it bagged an order from state-owned NTPC to establish a green hydrogen generation project for INR 128.49 crore (~USD 14.19 million). The power giant announced its plan to set up a green hydrogen project of 1 tonne/day at Greater Noida in Uttar Pradesh.

In an exchange filing, KPI Green Energy stated it "has received three notifications of award (NoA) from NTPC for the plasma gasification-based green hydrogen generation project.

India Moves from Hydrogen Vision to Real Deployment

The green hydrogen ecosystem in India is increasingly emerging, driven by a mix of capacity awards, large-scale, long-term cost-reduction strategies, and purposeful industry, mobility, and infrastructure pilot projects. Also, government support, private investment, and research-based innovation are establishing the environment to enable scale, cost competitiveness, and adoption. Additionally, with testing facilities, maturing state-level policies, and hydrogen valleys, India is emerging as both a producer and a comprehensive global center for green hydrogen and its derivatives. This provides a solid foundation for the 2030 and 2070 climate goals, given the momentum in 2025.

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