Decoding the role of Green Hydrogen in India’s industrial sectors. Know how these static sectors are being reshaped by use of GH.
Green Hydrogen is swiftly gaining recognition as a transformative force in India’s industrial sectors by offering a cleaner, more sustainable alternative to traditional hydrogen sources. Despite challenges like high production costs and infrastructure gaps, the growing momentum in both government initiatives and private sector investments signals a promising shift towards a low-carbon future. We will explore how Green Hydrogen is poised to reshape these industrial units, helping India achieve its net-zero targets, while reducing dependency on fossil fuels.
Oil Refining
A major step towards decarbonising oil refining sector is the adoption of Green Hydrogen, especially in hydrotreating and hydrocracking operations. As per No Carbon Fuel, these two processes together make up more than 90% of the sector’s hydrogen usage. Replacing grey hydrogen with GH, produced via renewable-powered electrolysis, can cut refinery emissions by up to 35%. Under the National Green Hydrogen Mission, India aims to produce 5 million tonnes of Green Hydrogen annually by 2030. Refineries like IOCL’s Panipat plant and BPCL-HPCL-MRPL’s joint initiative are leading the charge. Others, including Reliance and Adani, are investing in electrolyzer manufacturing, while ports like Paradip and Deendayal are being developed as hydrogen hubs. Though Green Hydrogen remains costly than grey — the government’s push and potential incentives could accelerate adoption.
Fertiliser and Green Ammonia
Green hydrogen is vital for producing green ammonia, a sustainable alternative to conventional ammonia used in fertilisers. Traditionally, made via steam methane reforming, ammonia production emits high levels of CO₂. Green hydrogen, generated through renewable-powered electrolysis, can significantly reduce this carbon footprint. In India, fertiliser production still relies on grey ammonia from natural gas, but there's growing momentum to switch to green ammonia to cut emissions and lessen import dependence. Though high costs remain a challenge, the National Green Hydrogen Mission (NGHM) is driving adoption through financial and policy support. Indian states are offering incentives, and private players like Avaada Group are exploring opportunities in this space. Institutions such as CEEW are also studying green ammonia’s economic viability. As more projects emerge, India’s fertiliser and energy sectors are expected to integrate green ammonia into production, especially for complex fertilisers, aligning with national sustainability and decarbonisation goals.
Chemical Industry
Green hydrogen plays a central role as a raw material in producing chemicals like ammonia and methanol, enabling cleaner alternatives to traditional methods such as the NG reforming based Ammonia synthesis loop and conventional methanol synthesis. In refineries and petrochemical operations, it also contributes to emission reductions while supporting operational efficiency. India is actively embracing Green Hydrogen to decarbonize its chemical sector and meet its 2070 net-zero goal. Major companies are investing in this transition: NTPC is setting up a plant in Ladakh; Indian Oil is building a facility in Mathura; and Reliance aims to produce one million tons annually by 2030. JSW Energy and the Adani Group have also announced major projects. These developments reflect India’s strong push to adopt sustainable solutions in industrial manufacturing.
Steel sector
Green hydrogen is gaining traction as a cleaner alternative in steelmaking, helping reduce CO₂ emissions across processes like agglomeration, blast furnace operations, DRI, and downstream activities. EY’s analysis in the whitepaper shows that Green Hydrogen demand in the steel sector is expected to grow at a 13% CAGR, reaching 15.15 MMTPA by FY70. In the accelerated net zero 2050 scenario, H2-DRI steelmaking route shall contribute to 39% of the crude steel production with Green Hydrogen demand of 9.82 MMTPA by FY50.
This shift is driven by tighter emissions regulations, technological advances, policy support and Green Hydrogen cost is projected to drop from $7/kg in 2024 to $1.8/kg by 2040, according to a report by CII and EY. Consequently, H2-DRI steel production costs are expected to fall, making it more competitive. Adoption enhances global competitiveness, mitigates carbon tax risks, promotes energy security, and fosters innovation and job creation. Embracing Green Hydrogen is key to sustainable, future-ready steelmaking.
Power sector
Green Hydrogen is revolutionising the power sector by providing a clean, sustainable way to store and distribute energy. Produced via electrolysis using renewable sources like solar and wind, it enables long-duration energy storage and helps stabilize the grid during periods of low renewable output. It can be used in gas turbines or fuel cells, either alone or with natural gas, reducing fossil fuel reliance. In off-grid areas, Green Hydrogen-powered microgrids enhance energy access and resilience. It also captures otherwise wasted renewable energy, boosting overall system efficiency. Key initiatives like SECI’s 1,500 MW electrolyser tender and large-scale investments by Reliance and Adani highlight its growing strategic importance.
Heating for Industrial and Residential purpose
In industries like steel, cement, glass and chemicals, it can replace fossil fuels in high-temperature processes, making operations more sustainable. For example, it can substitute coke in steelmaking or fuel the calcination process in cement production. Companies such as Air Liquide, Siemens Energy, and McPhy Energy are exploring Green Hydrogen solutions in India’s industrial sectors. In residential use, hydrogen boilers could replace natural gas for space and water heating. While India’s National Hydrogen Mission reflects strong government intent, widespread adoption faces hurdles such as high production costs, underdeveloped infrastructure, and lower efficiency compared to electrification. Still, ongoing innovation could improve its viability. Given India’s energy-intensive economy, Green Hydrogen holds long-term promise as a key driver of decarbonisation across sectors.
Ushering in the Next Era of Energy
Green Hydrogen is steadily emerging as a transformative force across sectors — from powering homes and industries to fuelling transportation and heavy manufacturing. With government support like the ₹496-crore allocation for pilot projects and growing private sector innovation in electrolysers and related technologies, Green Hydrogen is steadily transforming India’s energy landscape. Its role in advancing industrial sustainability, enhancing energy efficiency and achieving global decarbonization goals signals a promising future. With each step forward, India is moving closer to a cleaner, greener and more resilient energy ecosystem.
References:
Explainer
Policy Watch
Green Hydrogen Sahi Hai
Disclaimer
You’re about to be redirected to a third-party website. Please note that we do not control or endorse the content, security or privacy practices of external sites.
Continue at your own discretion and review the destination’s terms and privacy policy. By continuing, you accept these terms
