In Short : India has achieved its lowest green hydrogen price so far, bringing the country closer to its ambitious target of producing hydrogen at $2 per kilogram. According to Amitabh Kant, this milestone reflects rapid progress under the National Green Hydrogen Mission, driven by falling renewable energy costs, supportive policies, and increasing private sector participation in clean hydrogen projects.
In Detail : India has reached its lowest recorded price for green hydrogen production, marking an important step toward the country’s goal of producing green hydrogen at around $2 per kilogram. Former NITI Aayog CEO Amitabh Kant highlighted this achievement as a major milestone in India’s clean energy transition and its strategy to become a global leader in green hydrogen production.
Green hydrogen is produced by splitting water into hydrogen and oxygen using renewable electricity from sources such as solar and wind power. Because the process does not rely on fossil fuels, it generates minimal carbon emissions, making it a key technology for decarbonizing sectors that are difficult to electrify.
The decline in green hydrogen costs has been driven largely by the rapid fall in renewable energy prices in India. Solar and wind power tariffs have reached some of the lowest levels in the world, which significantly reduces the cost of electricity used in the electrolysis process for hydrogen production.
Government initiatives under the National Green Hydrogen Mission have also played a crucial role in accelerating progress. The program aims to make India a global hub for the production, use, and export of green hydrogen and its derivatives, while supporting domestic manufacturing of electrolyzers and related technologies.
Amitabh Kant emphasized that reaching competitive green hydrogen prices will help India decarbonize several heavy industries. Sectors such as steel, cement, fertilizers, shipping, and long-distance transportation require high-energy fuels and are difficult to transition using conventional renewable electricity alone.
India’s progress in reducing hydrogen production costs also strengthens its position in the global energy transition. Many countries are exploring green hydrogen as a key solution for achieving net-zero carbon emissions, creating significant future demand for low-cost hydrogen supplies.
Large-scale renewable energy parks, falling electrolyzer costs, and increasing investments from both public and private sectors are expected to further reduce the price of green hydrogen in the coming years. These developments will make hydrogen more competitive with conventional fossil-based fuels.
India’s strategic location and abundant renewable energy resources provide additional advantages for green hydrogen production. With strong solar potential and expanding wind capacity, the country has the ability to generate large amounts of renewable electricity needed for hydrogen production at competitive costs.
Overall, India’s achievement in reaching its lowest green hydrogen price represents a significant step toward achieving its $2 per kilogram target. Continued policy support, technological innovation, and investment in renewable energy infrastructure are expected to accelerate the growth of the green hydrogen sector and strengthen India’s role in the global clean energy economy.
