Pralhad Joshi launches Green Hydrogen Certification scheme
Union Minister of New and Renewable Energy, Pralhad Joshi, on Tuesday launched the Green Hydrogen Certification scheme in the country, which is a foundational step towards creating a robust framework for certifying green hydrogen production and ensuring transparency, traceability and market credibility.
New Delhi: Union Minister of New and Renewable Energy, Pralhad Joshi, on Tuesday launched the Green Hydrogen Certification scheme in the country, which is a foundational step towards creating a robust framework for certifying green hydrogen production and ensuring transparency, traceability and market credibility.
The minister highlighted the government's commitment to fostering innovation-led growth and emphasized that MSMEs will serve as the backbone of India's energy transition through their innovative capabilities and localised solutions.
Speaking at a national workshop here, he said MSMEs will play a critical role in realising the National Green Hydrogen Mission's objectives of building a self-reliant green hydrogen ecosystem by 2030.
The workshop was aimed to explore opportunities and discuss key role of MSMEs in development of green hydrogen ecosystem in India. Over 300 delegates drew participation from different stakeholder groups, including MSMEs, policymakers, technology providers, industry associations, and international partners.
Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy (MNRE), highlighted some key achievements in the implementation of National Green Hydrogen Mission.
He stressed upon the importance of building capacities, facilitating finance, and strengthening technology linkages to empower MSMEs to meaningfully participate in this new industrial landscape. He reiterated the Ministry's commitment to building institutional and infrastructural support for green hydrogen, with MSMEs playing a critical role.
At the workshop, panellists deliberated on R&D collaboration models, indigenization of components such as bipolar plates and electrolysers, and the role of knowledge institutions.
Discussions also centred on the integration of MSMEs into large-scale projects. Experts from international agencies and corporate leaders outlined business models and market opportunities, advocating for systematic MSME engagement strategies.
Expert speakers presented use cases on thermochemical and biochemical conversion of biomass to hydrogen, exploring their application in rural industries. The session highlighted the potential of decentralised models to meet local demand while promoting circular economy principles.
Financial institutions, including the World Bank, IREDA and IIFCL, discussed de-risking strategies, blended finance mechanisms, and the need to design green credit lines accessible to MSMEs, according to the ministry.
Pralhad Joshi green hydrogen production energy innovation in India MSMEs in energy transition decentralised hydrogen models
Deep Dive: Inside India’s green hydrogen funding plan
According to experts, the country's current outlay is likely to be short by nearly 75 per cent by 2030 if India wishes to compete globally
India's green hydrogen funding is 5–20x lower than global peers
At this pace, India may reach a tenth of its 2030 target
Only 5% of Indian projects have secured financing, compared to over 60% in the US and EU
Mumbai: India’s ambitious National Green Hydrogen Mission (NGHM), with an outlay of Rs 19,744 crore, about $2.4 billion, aims to position the country as a global leader in green hydrogen production and export
However, according to experts the mission’s current funding, which is 5–20 times lower than what the US, EU, and Gulf nations have pledged, might fall short when compared to aggressive plans from these regions.
“Globally, it seems that the US, EU, Gulf Nations and China are more aggressive when compared with India. The NGHM's current outlay is likely to be short by nearly 75 per cent by 2030 if India wishes to compete globally and shall struggle to match China and Gulf in terms of exports,” said Ravi Shekhar, Founder & MD, Eninrac Consulting.
He added that though China has a funding allocation of $6.7 billion but their hydrogen production cost is far more competitive when compared with India.
“If we compare India’s funding with respect to the other countries or regions it is about 5X lower than the US and 20X lower than Gulf nations combined. When we see China and the Gulf dominate it is due to state-backed capital and ultra-cheap renewables,” said Shekhar
According to Siddharth Shetty, analyst - hydrogen, wind at BloombergNEF (BNEF), incentives and policies offered by the central and state governments can help India bring down its green hydrogen costs, but in the absence of firm mandates for fertilizer or petroleum refineries, the country will miss its target of producing five million tonnes by 2030.
He said that toward the end of 2024, BNEF tracked about $190 billion of proposed announcements across multiple states. Most of which were focused on states with a coastline as exports are likely the immediate focus.
Proposed or planned green hydrogen investments (in $ billion) by state:
“Only some of the domestic green hydrogen projects are at an advanced stage and have momentum behind them. This is why we expect green hydrogen production to reach just 500,000 tonnes annually by 2030, a tenth of the target we have in place,” he added.
He, however, added that the funding for India’s green hydrogen programme is smaller than in many developed markets and that’s naturally so, given the difference in size of these economies and their diverging priorities.
“Our analysis suggests that India will narrow the gap with China in levelized costs of producing hydrogen by the end of the decade and then be at par by 2040. These are the only two markets we see producing green hydrogen below $2/kg by 2040,” Shetty added.
Minimum LCOH2 across 12 markets, 2023-2050 financing year
Shetty, however, said that the success of a low-carbon hydrogen economy does not rely only on the size of incentives and that resource availability also plays an important role.
“The incentives offered in India do not have limitations on the final geography of use. Which means that even projects looking to export green hydrogen can also benefit from these subsidies and compete in the global market. Therefore, these subsidies have the ability to make India’s cheap green hydrogen more attractive to global buyers,” he said.
Globally, project cancellations are on the rise as high costs slow demand creation. About 35 projects were cancelled across the world last year, compared to just six the year before. Global investments in clean hydrogen halved in 2024 compared to the year before, he added
“Right now, the global demand for green hydrogen is cooling down due to geopolitical uncertainty over tariffs by the US and also a slowing policy push in the EU. This can curtail the ambition of Indian green hydrogen producers planning to sell to buyers in Europe and the Far East. Despite this, India stood fourth in financing clean hydrogen projects in 2024,” Shetty added.
India’s renewable energy costs are among the most competitive globally, positioning the country well for green hydrogen production. However, a key bottleneck remains in the form of high electrolyzer costs, where India lags China.
“This gap limits India’s ability to fully capitalize on its renewable advantage and scale up green hydrogen production at globally competitive prices,” said Shekhar.
The US and the EU are offering generous incentives—ranging from $3 to $4 per kg of green hydrogen—which dramatically lower production costs and make exports viable. In contrast, India’s current support mechanisms are modest, offering only around $0.3 to $0.5 per kg.
“India also lags in subsidy depth. While the US and EU offer $3–4/kg incentives, India’s support stands at just $0.3–0.5/kg far too low to attract global capital or match production costs abroad. As a result, India’s hydrogen cost ($1.5–2.0/kg) is nearly double that of Saudi Arabia or China, with heavy dependence on imported electrolyzers inflating costs further,” said Shekhar.
He added that export competitiveness is also at risk as Gulf nations are signing offtake deals with EU and Asia, while Australia and Oman are moving ahead with ammonia export infrastructure leaving India behind due to underdeveloped ports and lack of binding agreements.
It is reflected by the gap in investor confidence as only 5 per cent of Indian green hydrogen projects have secured financing, compared to over 60 per cent in the US and EU, he added.