Green hydrogen is key to decarbonising hard-to-abate sectors. Evaluate the progress and challenges of the National Green Hydrogen Mission.

Hard-to-abate sectors are industries such as steel, fertilisers and refining. They need hydrogen as a raw material or high-temperature heat, so electrification alone cannot clean them up. The National Green Hydrogen Mission (NGHM) was approved in January 2023 with an outlay of ₹19,744 crore and a target of 5 MMT a year by 2030 [1]. It has built a credible foundation, but its effect on India's own industrial emissions is still uncertain.

Progress

• Dedicated funding: the mission has its own budget, which signals long-term policy commitment [1].
• Renewable base: green hydrogen needs cheap clean power. Non-fossil capacity has reached 308 GW (55% of installed capacity) and solar about 175 GW [1].
• Technology pilots: hydrogen vehicles and a fuel cell train are testing uses in transport [1].
• Market creation: offtake agreements (contracts to buy) have been signed, which places India in global clean-fuel supply chains and supports energy security [1].

Challenges

• Cost gap with grey hydrogen: refineries and fertiliser plants already use cheaper hydrogen made from natural gas, so they have no commercial reason to switch.
• Weak domestic demand: offtake is mostly export-oriented [1]. If most of the 5 MMT is shipped abroad, the emission cuts are counted in other countries, not in Indian steel or fertiliser. That undercuts the mission's core purpose.
• Gap between targets and results: the target, signed offtake and commissioned capacity are tracked separately [1]. A signed contract is not a working plant.
• Round-the-clock power: electrolysers need a steady power supply. The Standing Committee on Energy has flagged variable solar output and inadequate storage (about 5.5 GW) [2], and grid integration remains a bottleneck [1].

Verdict

NGHM has made real progress on funding, pilots and contracts, but less on cutting emissions in Indian industry. To change this, India could link the mission to the Carbon Credit Trading Scheme, which would make grey hydrogen costlier. It could also phase in green hydrogen consumption obligations for refineries and fertiliser plants, and add longer-duration storage. With domestic demand growing alongside exports, NGHM can serve both SDG 7 (clean energy) and SDG 13 (climate action) and help decarbonise India's hardest sectors.