India Green Hydrogen Market: Current Analysis and Forecast (2022-2032)

India is emerging as a key player in the Asian energy market. In late 2022, India announced a $2 billion incentive program for the green hydrogen industry. This program aims to reduce emissions and support India's efforts to become Asia's first major hydrogen exporter. Recently, the Indian and Australian governments finalized a deal to establish a task force for expanding green hydrogen cooperation between the two countries. India has set ambitious goals of becoming energy-independent by 2047 and achieving net-zero emissions by 2070 through a decarbonization strategy. The Union Cabinet approved this mission on 4th January 2023, with a budget allocation of ₹ 19,744 crore. The ultimate objective of the mission is to make India the global hub for the production, usage, and export of green hydrogen and its derivatives. By 2030, the mission aims to establish capacities to produce at least 5 million metric tons (MMT) of green hydrogen annually, with the potential to reach 10 MMT per annum through expansion of export markets and international partnerships.

Based on the electrolyzer, the green hydrogen market is divided into three segments based on the electrolyzer technology used - proton exchange membranes, alkaline electrolyzers, and others. Amongst these, alkaline electrolyzers have the highest market share as it is the most common and mature technology used for green hydrogen production. Additionally, alkaline electrolyzers are cost-effective and have a long operational life.

Based on source, the green hydrogen market is divided into three categories based on source: solar energy, wind energy, and others. Solar energy contributes significantly to the green hydrogen production process, and its production is considered a promising way to use solar energy and combat climate change caused by the burning of fossil fuels.

Based on end-users, the green hydrogen market is categorized into refining, ammonia, and others. The refining segment acquired the largest share as the refinery is the large industrial consumer of hydrogen, most of which is currently supplied by fossil fuels. The rising need to meet the net zero emissions targets has escalated the demand for green hydrogen in industries to reduce carbon emissions. Moreover, the government provides incentives to use green hydrogen in refineries, and exempting electrolyzers from grid fees, taxes, and levies is further accelerating the market share of refineries.

For a better understanding of the market adoption of the green hydrogen industry, the market is analyzed based on its India presence in states such as (East, West North, and South). The Southeastern state is leading India's green hydrogen production and consumption market due to its development of large-capacity green hydrogen plants. For instance, In 2024, NTPC Green Energy Ltd (NGEL), partnered with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to build a green hydrogen hub on 1,200 acres of land close to Pudimadaka. The plant's objective is to produce a capacity of 1,200 tons of green hydrogen per day.

Some major players operating in the market include Adani Green Energy Ltd, Reliance Industries, NTPC Ltd, Gail (India) Ltd, Oil and Natural Gas Corporation Ltd (ONGC), Larsen and Turbo, ACME Group, BHEL, Torrent Power, and Hygenco.