National Green Hydrogen Mission: Targets, SIGHT and Progress Explained for UPSC

In short: Green hydrogen, made by splitting water with renewable electricity, is India’s main bet for cutting emissions in sectors that cannot easily run on electricity, such as fertilisers, refining, steel and shipping. This explainer, based on the PIB Backgrounder of 2 November 2026, covers how it is made, what counts as “green”, the National Green Hydrogen Mission and its progress, and the challenges.

Syllabus: GS Paper 3: Infrastructure (energy); conservation and climate change; science and technology · Source: PIB Backgrounder “Green Hydrogen” · 2 November 2026

What makes hydrogen “green”?

• In August 2023, MNRE notified India’s Green Hydrogen Standard: hydrogen is green if emissions do not exceed 2 kg CO2 equivalent per kg of hydrogen, well-to-gate, as a 12-month average.
• In an electrolyser, current splits water (2H2O → 2H2 + O2); hydrogen forms at the cathode and oxygen at the anode. About nine litres of demineralised water is needed per kg of hydrogen.
• In a fuel cell, hydrogen reacts with oxygen to give electricity, with only water and heat as by-products.

Where green hydrogen is used

• Fertilisers: green ammonia can replace ammonia made from natural gas, the base of urea.
• Refineries: hydrogen removes sulphur from fuels and upgrades heavy oil; most refinery hydrogen today is grey.
• Steel: in the direct reduced iron route, hydrogen strips oxygen from iron ore, releasing water vapour instead of CO2.
• Transport: fuel-cell buses, trucks and trains; India’s first indigenous hydrogen train ran on the Jind–Sonipat section from 17 July 2026.
• Shipping and exports: green ammonia and green methanol as marine fuels and as export products.

National Green Hydrogen Mission at a glance

• Indian companies have signed offtake commitments of over 5.5 lakh tonnes a year, the largest in the world, most of it for export.
• Plants commissioned by 31 December 2030 get a 25-year waiver of inter-State transmission charges; standalone electrolysis plants are exempt from prior environmental clearance.
• About 8,000 tonnes a year of capacity had been commissioned by February 2026, far below the 2030 target.

Critical Analysis

Green hydrogen is still more expensive than grey hydrogen, and the gap is closed mainly by subsidies and transmission waivers. Commissioned capacity is a small fraction of the target, and most signed offtake is for export, so domestic decarbonisation of fertilisers and refining depends on mandates that are still being designed. Electrolysis also needs large amounts of renewable power and clean water, which can compete with other uses in dry regions. Supporters point to falling electrolyser costs, record offtake contracts and Indian prices that the Government says are among the lowest in the world.

Way Forward

• Introduce phased green hydrogen consumption obligations for fertiliser plants and refineries to create domestic demand.
• Plan water use carefully, using treated wastewater or desalination in water-scarce States.
• Expand electrolyser and fuel-cell manufacturing so that India does not swap fossil fuel imports for equipment imports.
• Build safety codes, storage and pipeline standards before large-scale use in cities and transport.

Green hydrogen links energy security, industrial policy and climate goals. For the exam, learn the colour types, the 2 kg standard, the Mission’s numbers and the main application sectors.