India Becomes Global Leader in Green Hydrogen Offtake Agreements
Supply agreements of over 5.55 lakh metric tonnes made by October 2026
By Capital Kranti desk, Gandhinagar · Editor: Parth Thakkar
29 October 2026, 10:40 pm · 8 min read
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According to a PIB report, India is taking global leadership in the field of green hydrogen. By October 2026, Indian companies have finalized offtake agreements and commitments totaling 5,55,610 metric tonnes per annum (MTPA) for green hydrogen. This figure is approximately 11% of the total target of the National Green Hydrogen Mission (NGHM).
Year 2026 has been very significant in this progress, with Indian companies signing 18 new green hydrogen offtake agreements for over 4 lakh MTPA. A total of 23 major agreements have been made so far. A total capital investment of more than ₹90,000 crore (approximately 9.5 billion US dollars) will be required to fulfill all these domestic and international agreements. Notably, more than 70% share of these total commitments has been allocated for global export.
Green hydrogen is becoming a key pillar of India's clean energy transition process. According to PIB, when water molecules are separated using renewable electricity, green hydrogen is produced. Hydrogen is an energy carrier that stores energy and delivers it for various uses. In a fuel cell, it reacts with oxygen to generate electricity, releasing only water and heat as by-products. No pollutant compounds or greenhouse gases are emitted in this process.
Pure hydrogen is not found in large quantities in nature, so it is extracted from compounds such as water or natural gas. Traditional methods rely on fossil fuels and emit carbon, but hydrogen produced through the electrolysis of water using renewable electricity such as solar and wind energy is called 'green hydrogen'. Carbon emissions in this process are very low. Since India has abundant resources of solar and wind energy, its production is possible here, which will strengthen the country's energy security and help achieve the net-zero emission target by 2070.
Green hydrogen is particularly important for sectors where emission reduction is difficult because high-temperature heat is required there or fossil fuel alternatives are fewer. Such 'hard-to-abate' sectors include fertilizer production, petroleum refining, iron and steel production, heavy road transport, and shipping. Fertilizer and refining plants already use green hydrogen instead of fossil fuel-based supply.
The Government of India set standards for green hydrogen in August 2023. According to the Ministry of New and Renewable Energy (MNRE), if the carbon dioxide emission per kilogram of hydrogen production does not exceed 2 kilograms according to a 12-month average, it will be considered 'green hydrogen'. Thus India has been included among the first few countries in the world to formally define green hydrogen.
Talking about the production process, green hydrogen is mainly made by the electrolysis of water (H₂O). A device called an electrolyzer is used in this process, which has two electrodes, a cathode and an anode, connected to a power source. Both these electrodes work in an electrolyte, which helps ions pass through the cell. A diaphragm keeps the gas separate while allowing ions to pass through. When current flows, hydrogen is formed at the cathode and oxygen at the anode. According to MNRE, water is purified before electrolysis because impurities can damage the cell. Approximately 9 liters of demineralized water are required for 1 kilogram of hydrogen.
The National Green Hydrogen Mission (NGHM) was approved by the Cabinet in January 2023 with an expenditure of ₹19,744 crore. The main objective of this mission is to develop a green hydrogen production capacity of at least 5 million metric tonnes (MMT) annually by 2030. With export demand, this capacity can reach up to 10 MMT. Under this mission, the SIGHT (Strategic Interventions for Green Hydrogen Transition) program is in operation, for which ₹17,490 crore has been allocated till 2029-30. This program provides incentives for both domestic electrolyzer manufacturing and green hydrogen production.
Focus has been given by the government on pilot projects in various sectors. ₹455 crore for low-carbon steel, ₹496 crore for mobility, and ₹115 crore for shipping have been allocated till 2029-30. Due to difficulties in transporting hydrogen, 'Green Hydrogen Hubs' and 'Hydrogen Valley Innovation Clusters' (HVIC) are promoted under the mission. Provision of ₹400 crore has been made for hubs and related projects till 2025-26.
A public-private framework named Strategic Hydrogen Innovation Partnership (SHIP) has been created for Research and Development (R&D). Guidelines of ₹400 crore for R&D were released in March 2024. By June 2026, projects in hydrogen production, storage, and safety technology are being supported through an initial R&D roadmap of ₹113 crore. In addition, ₹100 crore has been allocated for start-ups working on green hydrogen technology, out of which the first nine start-ups have received funding of ₹22 crore.
In the field of skill development, the mission aims to generate more than 6 lakh jobs across the value chain by 2030. So far 8,149 candidates have been trained and 7,248 have been certified across 14 states and union territories. This training includes renewable energy for electrolyzers, storage, transport, safety standards, and end-uses such as steel, mobility, and refining.
The government is adopting an integrated strategy in which the role of various ministries has been defined. The Ministry of Petroleum and Natural Gas encourages its use in refineries and city gas distribution. The Ministry of Chemicals and Fertilizers promotes indigenous green ammonia-based fertilizers. The Ministry of Road Transport and Highways enables use in transport through rules and regulations. The Ministry of Steel increases its use in steel production and the Ministry of External Affairs facilitates cooperation with global partners.
Significant progress has been made at the state level as well. Six states namely Gujarat, Andhra Pradesh, Maharashtra, Uttar Pradesh, Rajasthan, and West Bengal have announced dedicated green hydrogen policies. Haryana, Punjab, Bihar, and Kerala are currently drafting their policies. While seven states like Himachal Pradesh, Madhya Pradesh, Odisha, Telangana, and Chhattisgarh have included hydrogen in their existing industrial and renewable energy policies.
India has achieved a significant milestone in this sector. On July 17, 2026, India's first indigenous hydrogen-powered train was inaugurated on the Jind-Sonipat section. This 10-car trainset can carry about 2,600 passengers. There is a facility at Jind where about 3,000 kilograms of hydrogen is stored. This train emits only water vapor and heat.
To promote scientific progress, 'Emerging Science, Technology and Innovation Conclave' (ESTIC-2026) was organized by the Council of Scientific and Industrial Research (CSIR) from October 27 to 29, 2026 at Bharat Mandapam, New Delhi. The theme of this conclave is “Creative Minds, Catalyzing Science, Empowering Technologies”, in which 12 thematic areas including green hydrogen technology will be discussed, supporting the vision of 'Viksit Bharat 2047'.
Looking at future goals, this mission is expected to reduce fossil fuel imports by about ₹1 lakh crore by 2030. In addition, there is potential to attract investment of over ₹8 lakh crore and generate more than 6 lakh full-time jobs. The targeted production and use of green hydrogen can reduce carbon dioxide emissions by about 50 MMT annually. All these efforts will make India a global hub for the production, use, and export of green hydrogen and move towards the target of net-zero emissions by 2070.
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