India’s National Green Hydrogen Mission is set to attract an investment of ₹10.6 lakh crore ($129 billion) by 2030, as the country gears up to produce 5 million tonnes of green hydrogen annually. This initiative will add a significa t 135 GW of renewable energy capacity, with a focus on wind and solar power, to support hydrogen production.
The mission is central to India’s broader strategy to decarbonize its energy sector and reduce its dependence on fossil fuels.
According to a report by the Council on Energy, Environment, and Water (CEEW), the production of green hydrogen will require 84 GW of wind energy and 51 GW of solar energy. The states of Gujarat and Tamil Nadu will play a critical role in this energy transition, contributing 43% and 24%, respectively, of the total renewable energy required. Other key states like Maharashtra, Andhra Pradesh, and Rajasthan will also contribute significantly to the mission, helping India .
The green hydrogen initiative will demand an enormous financial commitment of ₹10.6 lakh crore by 2030, aimed at building renewable energy infrastructure and electrolyser capacity. Electrolysers, which split water into hydrogen and will play a key role in this mission, and India will need 74 GW of electrolyser r capacity to meet its hydrogen production targets.
This will allow India to decarbonize major industries like fertilisers, refineries, and methanol production, sectors that rely heavily on conventional energy sources.
The report highlights that this transition will also impact India’s power demand significantly. The production of green hydrogen is expected to increase the country’s peak electricity demand by 67 GW by 2030, pushing total demand to 409 GW. This increase is driven by the 310 billion units (BU) of electricity required annually for hydrogen production. Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh, and Karnataka are expected to be the major hubs for this energy intensive shift.