India Targets 900 KTPA Green Hydrogen Capacity by 2030 to Drive Energy Transition

India aims to achieve 900 KTPA of green hydrogen capacity by 2030 through major public sector investments, policy support, and state-led initiatives to cut fossil fuel imports and boost clean energy infrastructure.

Key Highlights

  • 900 KTPA green hydrogen target by 2030 from state-run oil & gas PSUs, slashing ₹1 lakh crore fossil fuel imports .
  • Part of National Green Hydrogen Mission (₹19,744 crore outlay) aiming for 5 MMTPA total production .
  • $61 billion in combined central-state support; costs to drop below $2/kg from current $3.5-4/kg .
  • Telangana’s Ramagundam hydrogen valley; Andhra’s $21B Pudimadaka project for 1,500 TPD hydrogen .

India has set its sights on producing 900 kilo tonnes per annum (KTPA) of green hydrogen by 2030, marking a major stride towards energy independence and a low-carbon future. Union Petroleum and Natural Gas Minister Hardeep Singh Puri made the announcement, describing it as India’s “next big energy leap” that would significantly reduce fossil fuel imports worth around ₹1 lakh crore annually.

The ambitious capacity will be developed largely through public sector oil and gas companies — including Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL), GAIL, ONGC, Numaligarh Refinery, and Chennai Petroleum Corporation — under the National Green Hydrogen Mission (NGHM).

National Green Hydrogen Mission Goals

Approved in January 2023 with an outlay of ₹19,744 crore, the National Green Hydrogen Mission aims to make India a global hub for green hydrogen production and export. The government targets 5 million metric tonnes per annum (MMTPA) of green hydrogen capacity by 2030, with the latest 900 KTPA PSU target forming a key part of that vision.

Industry reports, including the latest from Nuvama Institutional Equities, estimate that India’s hydrogen demand could nearly double to 12 MTPA by 2030, largely driven by fertilizer, refining, and petrochemical sectors.

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Policy Support and Cost Reduction

To strengthen the emerging hydrogen economy, the government introduced the Green Hydrogen Certification Scheme in April 2025. The scheme certifies hydrogen as “green” only if produced using renewable electricity with emissions below 2 kg of CO₂ per kg of hydrogen, ensuring credibility in both domestic and international markets.

The Centre and states together are expected to roll out combined support measures worth $61 billion, according to Nuvama. Since the mission’s launch, 13 states have introduced targeted support — including waivers on power transmission and banking charges, capital subsidies, interest support, and rebates on land and state taxes.

Despite strong backing, cost competitiveness remains a key challenge. Green hydrogen production currently costs between $3.5 and $4 per kg, compared to about $2.2 per kg for grey hydrogen (produced from natural gas). Policymakers, however, are optimistic that with technological advancements, cheaper electrolyzers, and falling renewable power costs, prices could drop below $2 per kg by 2030.

Nuvama estimates that simply waiving open access and power banking charges could reduce green hydrogen costs by nearly 25%.

State Initiatives and Infrastructure Development

Leading states are also developing ambitious hydrogen ecosystems. Telangana, under its Clean and Green Energy Policy 2025, targets 20,000 MW of renewable and storage capacity by 2030 and is preparing to establish a hydrogen valley in Ramagundam, anchored by NTPC and surrounding industrial clusters.

Similarly, Andhra Pradesh is home to one of India’s largest upcoming green hydrogen projects at Pudimadaka, being developed by NTPC Green Energy. The integrated facility will produce up to 1,500 tonnes of green hydrogen and 7,500 tonnes of derivatives (green ammonia and methanol) per day. The project, with an estimated investment of $21 billion, was launched by Prime Minister Narendra Modi in January 2025.

These large-scale initiatives are expected to accelerate industrial decarbonization, generate green jobs, and transform India into a major global supplier of clean fuels.

Toward a Green Energy Future

With PSU investments, targeted policy interventions, and active state participation, India’s green hydrogen ecosystem is expanding rapidly. If the outlined goals are achieved, India could become one of the top global players in the clean hydrogen market — driving sustainability, economic growth, and energy resilience by 2030.

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