NEW DELHI / KANDLA — India’s ambition to establish itself as a premier global hub for green hydrogen and derivative green chemicals has gained substantial operational momentum. The Ministry of New and Renewable Energy (MNRE), alongside the Solar Energy Corporation of India (SECI), has issued commercial execution awards under the second tranche of the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, scaling domestic electrolyser manufacturing capacity to over 3,000 MW annually.
With global maritime transport, steelmaking, and fertilizer manufacturing under mounting regulatory pressure to decarbonize, India’s unique combination of low-cost renewable solar and wind generation positions the country as one of the lowest-cost green hydrogen producers globally.
SIGHT Tranche-II: Indigenous Electrolyser Stacks
The SIGHT program tackles the core technology component of green hydrogen: the electrolyser stack. Through structured five-year performance incentives, leading engineering conglomerates and clean-tech joint ventures are establishing gigafactories for Proton Exchange Membrane (PEM), Alkaline, and Solid Oxide Electrolyser Cells (SOEC):
- Alkaline and PEM Stacks: Domestic manufacturing facilities in Gujarat, Maharashtra, and Tamil Nadu targeting local value addition of over 60% within three years.
- Technology Localization: Licensing advanced membrane electrode assemblies (MEA) and non-precious metal catalysts to reduce dependence on scarce platinum-group elements.
- Levelized Cost Reduction: Economies of scale, paired with dedicated solar-wind hybrid wheeling tariffs below ₹2.60 per kWh, are driving green hydrogen generation costs toward $2.50/kg.
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Port Ecosystems as Export and Bunkering Gateways
To capture early international market share, the Ministry of Ports, Shipping, and Waterways has designated three mega-ports as specialized Green Hydrogen Hubs: Deendayal Port in Kandla (Gujarat), VO Chidambaranar Port in Tuticorin (Tamil Nadu), and Paradip Port (Odisha). Over 1,200 acres of port land have been leased to project developers for cryogenic storage, green ammonia synthesis, and international bunkering pipelines.
Bilateral off-take memorandums signed with German, Dutch, and Japanese utility consortiums will see initial export shipments of green ammonia commence via specialized refrigerated carriers, validating the commercial viability of India’s green maritime corridors.
Mandatory Blending in Fertilizers and Refining
Domestically, the government is formulating binding green hydrogen consumption obligations (GHCO) for hydrocarbon refineries and nitrogenous fertilizer plants. Commencing with a 5% mandatory substitution of fossil-derived grey hydrogen, rising to 20% by 2030, the policy ensures steady domestic baseload demand while insulating agricultural input prices from global natural gas volatility.
