Decarbonising refineries, fertiliser plants, and heavy transport

A Milestone in India’s Clean-Energy Transition

India’s National Green Hydrogen Mission (NGHM) has entered a crucial implementation stage with the award of the first industrial-cluster contracts across Gujarat, Odisha, and Tamil Nadu. These clusters are envisioned as India’s earliest large-scale hubs for clean hydrogen production, end-use, infrastructure, and exports. The mission aligns with India’s goals under the Paris Agreement and its commitment to achieving net-zero emissions by 2070.

Industrial Clusters and PLI Support

1. Location of the First Hydrogen Hubs

• Gujarat: Focus on petrochemical and refinery decarbonisation.
• Odisha: Integration with steel and mining industries.
• Tamil Nadu: Leveraging port infrastructure for manufacturing and export.

These clusters will be the primary sites for electrolyser deployment, hydrogen pipelines, storage systems, and refuelling stations.

2. Production-Linked Incentives (PLI) for Scaling

The government has rolled out PLIs for:

• Electrolyser manufacturing: To reduce dependence on imports and bring down costs.
• Green hydrogen production: Ensuring early viability by subsidising per-kg cost of hydrogen.

This is expected to make India a competitive hub in the global hydrogen value chain.

Sectoral Applications: Decarbonising India’s Hard-to-Abate Industries

1. Steelmaking

Green hydrogen can replace coke and natural gas in Direct Reduced Iron (DRI) processes, significantly reducing emissions from a sector that accounts for ~12% of India’s industrial CO₂.

2. Ammonia & Fertiliser Manufacturing

Switching from “grey ammonia” to green ammonia can decarbonise fertiliser production and reduce import dependency.

3. Refineries & Petrochemicals

Refineries are major hydrogen consumers; transitioning to green hydrogen will drastically cut their carbon footprint.

4. Long-Haul Transport

Hydrogen fuel cells are being promoted for:

• Heavy trucks
• Intercity buses
• Commercial fleets
  This supports India’s clean mobility goals.

Key Challenges Ahead

1. High Cost of Production

Green hydrogen is still costlier than grey/blue hydrogen due to expensive electrolysers and the high cost of renewable power.

2. Storage & Safety Concerns

Hydrogen’s flammability and low density require specialised containers and safety protocols.

3. Renewable Energy Demand

Large-scale hydrogen production hinges on consistent, low-cost renewable electricity—requiring massive solar and wind expansion.

4. Infrastructure & Market Development

Pipelines, hydrogen corridors, and a guaranteed offtake market must be developed simultaneously.

Global Positioning: India as a Future Exporter

India aims to become a leading supplier to Europe, Japan, and South Korea, which have rising hydrogen demand and limited renewable resources.
Key enablers:

• Strategic ports (Kandla, Chennai)
• Competitive solar energy costs
• Bilateral partnerships with EU and East Asia