Archive · 25 Jul 2026
India's Green Hydrogen Goals Face Cost Challenges
India wants to make a lot of green hydrogen by 2030, but there's a problem.
The machines needed to make green hydrogen, called electrolysers, are cheaper if they come from China.
If India uses machines from other countries, it might not make enough money.
Right now, India is making less than 10,000 tonnes of green hydrogen a year, but it wants to make 5 million tonnes by 2030.
Some companies have already promised to make about 1.2 million tonnes.
The government is giving money to help, but it's not enough.
India needs to find a way to make green hydrogen cheaper and faster if it wants to meet its goal.
Green hydrogen projects may not be profitable without Chinese-made electrolysers.
China dominates the electrolyser market with lower costs.
Aggressive bidding has driven green hydrogen tariffs to competitive levels.
India's current green hydrogen capacity is below 10,000 tonnes per annum.
India aims to produce 5 million tonnes of green hydrogen by 2030, but current auctions may not meet this target.
- Who
- Indian government, oil and gas companies, green hydrogen developers
- What
- Challenges in achieving India's green hydrogen production target due to cost issues with non-China-made electrolysers
- When
- Current tenders and future auctions up to 2030
- Where
- India
- Why
- High costs of non-China-made electrolysers and the need for domestic R&D and manufacturing
Pro-China Equipment
Anti-China Equipment
Cost Efficiency
Pro-China Equipment
Using Chinese-made electrolysers is more cost-effective due to lower production costs.
Anti-China Equipment
Non-China-made electrolysers may lead to higher costs but could support domestic manufacturing and reduce dependency on China.
Market Competition
Pro-China Equipment
China's dominance in electrolyser manufacturing makes it difficult for other countries to compete on cost.
Anti-China Equipment
Investing in domestic R&D and manufacturing can reduce reliance on Chinese equipment and foster a competitive market.
- Current Green Hydrogen Capacity
- Below 10,000 tonnes per annum
- Auctioned Capacity under SIGHT
- 1.2 million tonnes per annum
- Lowest Green Hydrogen Price
- ₹279 per kg
- Average Green Ammonia Tariff
- ₹53.3 per kg
- 2030 Production Target
- 5 million tonnes per annum
- Incentive for Green Hydrogen
- ₹50 per kg for the first year
