Green Hydrogen Projects Stalled in India Amid Economic Viability Concerns, Pricing Uncertainty.

India's ambitious green hydrogen initiatives are facing significant headwinds, with slow progress attributed to a lack of clarity on global demand for green ammonia and the economically unviable cost of producing green hydrogen. This uncertainty is subsequently impacting pricing, casting a shadow over the widespread adoption of this crucial clean energy source.

The Indian government has been a strong proponent of green hydrogen, aiming for an ambitious production target of 5 million tonnes by 2030 under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. This initiative, backed by an outlay of ₹17,500 crore until FY30, offers incentives for both electrolyser manufacturing and green hydrogen production.

Despite this substantial governmental push and the enthusiastic announcements from leading energy companies – including state-owned giants like Indian Oil Corporation, Oil India, NTPC, and GAIL, as well as private sector conglomerates such as Reliance Industries – the green hydrogen narrative in India is yet to become a resounding success story. The economic challenges and the absence of clear pricing mechanisms are proving to be significant hurdles in translating these ambitious plans into tangible, large-scale projects.