{"id":51028,"date":"2025-06-20T10:03:47","date_gmt":"2025-06-20T04:33:47","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=51028"},"modified":"2025-06-20T11:25:48","modified_gmt":"2025-06-20T05:55:48","slug":"indias-green-hydrogen-mission-domestic-push-gains-momentum-amidst-weak-export-outlook","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-green-hydrogen-mission-domestic-push-gains-momentum-amidst-weak-export-outlook\/","title":{"rendered":"India\u2019s Green Hydrogen Mission: Domestic Push Gains Momentum Amidst Weak Export Outlook"},"content":{"rendered":"<h2><b>Green Hydrogen Sector Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Stakeholders in India\u2019s emerging green hydrogen sector remain optimistic that the alternative fuel is poised to play a significant role in the country\u2019s future energy landscape.<\/span><\/li>\n<\/ul>\n<h2><b>Domestic Push to Green Hydrogen Development<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India&#8217;s <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/green-hydrogen\/\" target=\"_blank\"><span style=\"font-weight: 400;\">green hydrogen<\/span><\/a><span style=\"font-weight: 400;\"> sector is at a pivotal juncture. With global demand faltering due to geopolitical tensions and uncertain international policy environments, India has turned its attention inward, focusing on domestic demand creation, infrastructure, and policy support.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government and industry remain confident in the long-term prospects of green hydrogen, recognising its potential role in decarbonising key sectors like fertilisers, steel, and shipping.<\/span><\/li>\n<\/ul>\n<h2><b>National Green Hydrogen Mission and Strategic Interventions<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Launched in 2023, the <\/span><b>National Green Hydrogen Mission<\/b><span style=\"font-weight: 400;\"> is India\u2019s flagship initiative to position the country as a global hub for green hydrogen production, usage, and export.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Backed by an outlay of Rs 19,744 crore, the mission aims to develop <\/span><b>5 million metric tonnes (MMT)<\/b><span style=\"font-weight: 400;\"> of green hydrogen production capacity by 2030.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It also includes provisions for the domestic manufacture of electrolysers under the <\/span><b>SIGHT (Strategic Interventions for Green Hydrogen Transition)<\/b><span style=\"font-weight: 400;\"> programme.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To ensure integrity and transparency, the Ministry of New and Renewable Energy (MNRE) introduced a <\/span><b>measurement and certification framework in April 2025<\/b><span style=\"font-weight: 400;\">, establishing standards to verify green hydrogen at production sites.<\/span><\/li>\n<\/ul>\n<h2><b>Global Headwinds Affect Export Demand<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite significant investments and plans for export-oriented projects like <\/span><b>ReNew\u2019s green ammonia facility in Odisha<\/b><span style=\"font-weight: 400;\">, India&#8217;s export aspirations face severe constraints.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the heart of the slowdown is the weakening of global demand, a consequence of both <\/span><b>geopolitical instability<\/b><span style=\"font-weight: 400;\"> and <\/span><b>policy uncertainty<\/b><span style=\"font-weight: 400;\"> in key markets like the US and EU.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MNRE highlighted that lack of <\/span><b>market visibility<\/b><span style=\"font-weight: 400;\"> and setbacks to US policies such as the <\/span><b>Inflation Reduction Act (IRA)<\/b><span style=\"font-weight: 400;\">, now threatened by a rollback proposal called the \u201cBig Beautiful Bill\u201d under consideration by the US Senate, have undermined investor confidence and planning in global clean fuel transitions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, tenders floated by European agencies such as Germany\u2019s <\/span><b>Hintco<\/b><span style=\"font-weight: 400;\"> (under the H2Global Foundation) failed to attract sufficient industry participation, compounding the export sluggishness.<\/span><\/li>\n<\/ul>\n<h2><b>Efforts to Secure Global Access<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To address logistical and trade-related barriers, India is engaging with major European ports, including <\/span><b>Rotterdam and Antwerp<\/b><span style=\"font-weight: 400;\">, to streamline future green hydrogen shipments.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">At the policy level, <\/span><b>free trade agreement (FTA) discussions with Europe<\/b><span style=\"font-weight: 400;\"> now include proposals to reduce import duties on Indian green hydrogen and derivatives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nonetheless, the short-term outlook for exports remains bleak, pushing stakeholders to explore alternative paths for sectoral growth.<\/span><\/li>\n<\/ul>\n<h2><b>Domestic Demand as a Growth Driver<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In response, the Indian government is aggressively working to <\/span><b>build a robust domestic market<\/b><span style=\"font-weight: 400;\"> for green hydrogen.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A recent tender for the supply of <\/span><b>8 lakh tonnes<\/b><span style=\"font-weight: 400;\"> of green hydrogen received full bids, demonstrating rising interest among Indian enterprises.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, the <\/span><b>Solar Energy Corporation of India (SECI)<\/b><span style=\"font-weight: 400;\"> is managing another tender for <\/span><b>7 lakh tonnes<\/b><span style=\"font-weight: 400;\">, particularly aimed at the fertiliser industry.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To further ensure offtake, pilot initiatives are being rolled out in sectors like transportation, steel, and shipping. Hydrogen fuel cell buses are currently being tested in five cities, including <\/span><b>Ladakh<\/b><span style=\"font-weight: 400;\">, to examine real-world performance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry voices have argued that <\/span><b>domestic mandates<\/b><span style=\"font-weight: 400;\"> may be necessary to truly scale adoption, for example, making it mandatory for fertiliser manufacturers to source a portion of their ammonia from green hydrogen sources.<\/span><\/li>\n<\/ul>\n<h2><b>Cost Competitiveness and Commercial Viability<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The greatest hurdle to mainstream adoption remains <\/span><b>cost competitiveness<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, <\/span><b>green hydrogen costs $4-$5 per kg<\/b><span style=\"font-weight: 400;\">, compared to <\/span><b>$2.3-$2.5 per kg for grey hydrogen<\/b><span style=\"font-weight: 400;\">, which is produced using fossil fuels.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These cost dynamics mean that, unlike renewables today, green hydrogen is <\/span><b>not yet commercially viable<\/b><span style=\"font-weight: 400;\"> without policy mandates or incentives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new report by <\/span><b>CII, Bain &amp; Company, and RMI<\/b><span style=\"font-weight: 400;\"> attributes this high cost to immature supply chains, high financing costs, and lack of scale. It recommends incremental strategies to boost demand, including:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Blending green hydrogen<\/b><span style=\"font-weight: 400;\"> into grey hydrogen or piped natural gas networks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Encouraging its use in <\/span><b>niche sectors<\/b><span style=\"font-weight: 400;\"> such as ceramics, chemicals, and glass.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Leveraging <\/span><b>public procurement<\/b><span style=\"font-weight: 400;\">, particularly for <\/span><b>green steel<\/b><span style=\"font-weight: 400;\">, to boost scale and lower costs.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Future Outlook: Balancing Export Aspirations and Domestic Realities<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s long-term vision for green hydrogen remains ambitious and well-supported.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, present challenges suggest a need to rebalance expectations, shifting emphasis from <\/span><b>export-oriented growth<\/b><span style=\"font-weight: 400;\"> to <\/span><b>domestic market creation and infrastructure building<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If successful, India could replicate its renewables success story in this domain too, gradually achieving cost parity and becoming a leader in global green hydrogen trade.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>While India remains optimistic about its green hydrogen potential, geopolitical tensions and market challenges have weakened export prospects, shifting focus to strengthening domestic demand.<\/p>\n","protected":false},"author":21,"featured_media":51031,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[932,60,22,59],"class_list":{"0":"post-51028","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-green-hydrogen-sector","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/51028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=51028"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/51028\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/51031"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=51028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=51028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=51028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}