Environment · GS3
Green hydrogen capacity and cost challenge
One line
India reported about 8,000 tonnes per annum of commissioned green-hydrogen capacity by February 2026 against the National Green Hydrogen Mission's 2030 ambition of at least 5 million tonnes annually.
Summary
The gap between commissioned capacity and the 2030 goal shows that electrolyser deployment, renewable power, offtake, storage, transport, finance, and standards must scale together. Government procurement can help create early demand, but cost competitiveness remains decisive.
PYQ pattern
UPSC can connect hydrogen with decarbonising hard-to-abate sectors, energy security, renewable integration, and industrial policy.
Core notes
- Renewable electricity can account for roughly 50 to 70 per cent of green-hydrogen production cost.
- Reported refinery procurement discoveries included prices of about ₹397 and ₹387 per kilogram, including GST.
- Likely early-use sectors include refineries, fertilisers, steel, shipping, and heavy transport.
- Green hydrogen is produced through pathways meeting the notified emission threshold; the energy source and lifecycle emissions matter.
Prelims lens
- An electrolyser uses electricity to split water into hydrogen and oxygen.
- Green hydrogen is an energy carrier, not a primary energy source.
- Additional renewable generation and water planning are relevant to its sustainability.
MCQ 1
Which input is usually the largest contributor to green-hydrogen production cost?
- A. Renewable electricity
- B. Limestone
- C. Crude oil
- D. Coking coal
Reveal answerHide answer
A
Electricity is the main operating input for electrolysis and can form 50 to 70 per cent of production cost.
MCQ 2
Green hydrogen is best described as:
- A. A primary fossil fuel
- B. An energy carrier whose emissions depend on its production pathway
- C. Naturally occurring atmospheric hydrogen collected without energy
- D. A form of nuclear fuel
Reveal answerHide answer
B
Hydrogen stores and transports energy. Its climate value depends on the production energy and lifecycle emissions.
Mains
Question, 10 marks, 150 words: What must India do to convert its green-hydrogen ambition into a competitive industrial ecosystem?
Approach:
- State the mission goal and current scale-up gap.
- Discuss renewable power, electrolysers, finance, infrastructure, standards, and demand.
- Examine applications in fertiliser, refining, steel, and transport.
- Recommend competitive procurement, domestic manufacturing, certification, and water-sensitive siting.