Maharashtra is positioning itself as a frontrunner in India’s green energy transformation with its Green Hydrogen Policy 2023, a strategic push aimed at decarbonising key industries and establishing a robust green economy. With a target of producing 500 kilotons of green hydrogen annually by 2030, the state has declared its ambition to become a national hub for green hydrogen innovation and deployment.

Despite this bold vision, Maharashtra faces several structural challenges in turning ambition into reality. High production costs, limited infrastructure, and regulatory hurdles continue to hinder the commercial viability of green hydrogen. However, a new report suggests that well-calibrated policy incentives could dramatically shift the economics in favour of clean hydrogen.

According to the report, on-site hydrogen projects currently offer the lowest production costs—approximately $4 per kilogram. Yet, these projects are constrained by land availability and scaling limitations. In contrast, third-party models improve infrastructure utilization but come with a price premium. Capital expenditure subsidies introduced by the state have the potential to reduce the levelized cost of green hydrogen by 21–25 percent. This could bring prices down from the current average of $4.5 per kilogram to under $3.5, significantly narrowing the gap with conventional grey hydrogen.

Moreover, the study identifies opportunities to further reduce costs through strategic infrastructure linkages. Projects connected to India’s Central Transmission Utility and backed by anchor industrial units can realise cost reductions of up to 30 percent, provided both capital and operational subsidies are optimised.

The report proposes a comprehensive framework to scope and develop green hydrogen hubs in the state. It emphasises the need for integrated planning across five pillars: physical infrastructure, market creation, policy consistency, research and innovation, and financial support. Based on these criteria, Raigarh and Ratnagiri have emerged as promising candidates for early green hydrogen hub development due to their industrial base and coastal access.

To guide Maharashtra’s green hydrogen roadmap, the study recommends a Green Hydrogen Readiness Plan built around seven core impact areas across the value chain. The report underscores that the right combination of incentives, infrastructure, and institutional commitment can position Maharashtra as the benchmark state for a functional, scalable green hydrogen ecosystem in India.

Source: 

https://rmi.org/insight/maharashtras-pathway-to-be-the-green-hydrogen-hub/