Power Grid

Investments in India’s green hydrogen sector are rapidly gaining traction, with a significant new development marking a major milestone. Recently, the construction of a massive green hydrogen project in the southern state of Andhra Pradesh was officially initiated.

On January 8, 2025, Indian Prime Minister Narendra Modi laid the foundation stone for the NPC Green Energy Limited's Green Hydrogen Centre. This project is a critical part of India's broader National Green Hydrogen Mission, which aims to produce at least 5 million metric tons of green hydrogen per year by 2030.

This green hydrogen initiative is particularly significant as it represents the first project under the National Green Hydrogen Mission, emphasizing India's commitment to achieving energy sustainability. The project’s location in Andhra Pradesh is strategic, as it is set to enhance the state's role in the global green energy market. The center will also contribute to national goals of energy independence, stimulate economic growth, and create thousands of jobs, which is expected to strengthen the country’s global position in renewable energy sectors.

The Green Hydrogen Centre is being developed with an investment of Rs. 85 million crores (approximately $22.2 billion). This large-scale project includes 20 gigawatts of renewable energy capacity, which will contribute significantly toward India's target of reaching 500 GW of non-fossil electricity capacity by 2030.

Key components of the project include a green hydrogen manufacturing unit, green chemical production facilities, a chemical storage unit, transmission infrastructure, a 7 GW substation, and desalination facilities. The center is expected to produce 1,500 tonnes of green hydrogen annually, along with 7,500 tonnes of green methanol, urea, and sustainable aviation fuel, with the majority directed toward exports.

In addition to this groundbreaking project, India’s green hydrogen sector is seeing further development with collaborations and investments. GreenState Hydrogen India and H2Carrier have signed a Memorandum of Understanding to advance ammonia and green hydrogen production in India and Sri Lanka.

India's second green hydrogen tender in December 2024 attracted 14 bids, indicating strong interest in the sector. Winning companies will benefit from government subsidies aimed at reducing production costs. Furthermore, India has entered into an agreement with Germany to boost green hydrogen trade, as Germany plans to import 10 million tonnes of green hydrogen by 2030. Despite the potential, challenges such as high production costs, infrastructure development, and regulatory frameworks must be addressed to ensure India’s green hydrogen ambitions are fully realized.