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India's Green Hydrogen Price Drops to Record Low, $2/kg Target in Sight

India has discovered its lowest-ever price for green hydrogen at approximately $3.08 per kilogram in a major tender. Former NITI Aayog CEO Amitabh Kant credits government support and cheaper renewable electricity for this milestone, bringing the $2/kg target closer to reality. The National Green Hydrogen Mission aims to establish India as a global hub for production and export, with a targeted capacity of 5 million metric tonnes annually by 2030. Multiple companies have already been awarded significant production and procurement capacities under the government's incentive schemes.

Key Points: India's Green Hydrogen Hits Record Low Price, $2/kg Goal Near

  • Record low price of ₹279/kg
  • Government incentives driving cost down
  • National Green Hydrogen Mission in progress
  • Production capacity target of 5 MMT by 2030
2 min read

"India's ambition to achieve green hydrogen at $2/kg is not a distant dream anymore": Amitabh Kant

India achieves lowest-ever green hydrogen price at $3.08/kg, boosting its ambition for $2/kg production. Experts credit government incentives and renewable energy.

"India's ambition to achieve green hydrogen at $2/kg is not a distant dream anymore": Amitabh Kant
"India's ambition to achieve green hydrogen at USD 2/kg is not a distant dream anymore. - Amitabh Kant"

New Delhi, March 5

India has recorded its lowest-ever discovered price for green hydrogen and its ambition to achieve green hydrogen at USD 2/kg is not a distant dream anymore, says Amitabh Kant, Former G20 Sherpa of India and Former Niti Aayog CEO.

Posting on his social media today, he said, "India has recorded its lowest-ever discovered price for green hydrogen at ₹279 (~$3.08)/kg in a tender for 10,000 tonnes per year supply to Numaligarh Refinery in Assam."

He credited Indian government and its efforts towards cheaper renewable electricity to achieve this milestone.

"Supported by government incentives and cheaper renewable electricity, this milestone boosts cost competitiveness and marks rapid sector progress," Kant said.

"India's ambition to achieve green hydrogen at USD 2/kg is not a distant dream anymore," he added.

The Ministry of New and Renewable Energy released a statement last month to talk about its green hydrogen mission.

The release stated, "the Government of India is implementing the National Green Hydrogen Mission (NGHM), with an objective to make India a global hub of production, usage and export of Green Hydrogen and its derivatives."

India's Green Hydrogen production capacity is likely to reach 5 Million Metric Tonnes per annum by 2030, the release noted.

Under the incentive scheme for Green Hydrogen production, 18 companies have been awarded a cumulative production capacity of 8,62,000 tonnes per annum.

Under the incentive scheme for procurement of Green Hydrogen for refineries, 2 companies have been awarded a total capacity of 20,000 tonnes per annum.

Prices have been discovered by Solar Energy Corporation of India for the production and supply of 7,24,000 tonnes per annum of Green Ammonia (a derivative of Green Hydrogen) to 13 fertilizer units across India.

India is optimising its energy mix for green hydrogen production by rapidly expanding low - cost renewable energy capacity, supported by competitive tariff - based bidding, large - scale solar and wind deployment, and enabling policy frameworks.

- ANI

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Reader Comments

S
Sarah B
As someone working in the renewable sector, I'm cautiously optimistic. The price discovery at ₹279/kg is a great start, but scaling this up to 5 MMT by 2030 is a massive challenge. We need to ensure the supply chain and electrolyser manufacturing keeps pace.
P
Priya S
Green hydrogen for refineries and fertilizers is a smart start. It can really help reduce our import bill for crude oil and natural gas. Hope this also creates new job opportunities, especially in states like Assam where the first project is.
R
Rohit P
While the ambition is good, I hope the focus remains on making renewable electricity truly cheap and reliable first. Solar and wind are great, but we need better storage solutions to support 24/7 green hydrogen production. The ₹279/kg price is promising though!
M
Michael C
The global race for green hydrogen is on. If India can hit the $2/kg target, it won't just be energy independent, it could become a major exporter. The strategic and economic benefits are huge. The progress on Green Ammonia for fertilizers is particularly important for our farmers.
K
Kavya N
This is the kind of future-focused policy we need. Moving from fossil fuels to green hydrogen can help clean our air and fight climate change. Hope the benefits reach everyone and not just big industries. More public awareness about such missions is also needed.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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