Green Hydrogen Prices in India to See Significant Drop, Boosting Clean Energy Goals

New Delhi, June 11, 2025:
In a major development for India’s clean energy transition, the cost of green hydrogen in India is expected to decline by as much as 40%, according to a recent report. This significant reduction in green hydrogen prices in India is seen as a crucial enabler for accelerating the nation’s renewable energy ambitions and reducing dependence on fossil fuels.

Green hydrogen prices in India to become more competitive

Green hydrogen prices in India have long been a concern for policymakers and industries alike due to their high production costs compared to grey hydrogen derived from fossil fuels. However, advancements in technology, increased investment in renewable energy infrastructure, and supportive government policies are likely to drive a downward trend in green hydrogen prices in India.

As per the report, the price drop is anticipated within the next five years, bringing green hydrogen closer to price parity with other forms of hydrogen. This could open up vast opportunities for sectors such as steel, refining, chemicals, and mobility, which are increasingly looking to decarbonize their operations.

India’s push toward affordable green hydrogen production

The Indian government has launched several initiatives, including the National Green Hydrogen Mission, to promote the use and domestic production of green hydrogen. These policy frameworks are aimed at reducing the cost of electrolyzers, expanding renewable capacity, and creating a robust supply chain for green hydrogen.

A senior official from the Ministry of New and Renewable Energy stated that the focus is on scaling up domestic electrolyzer manufacturing and setting up green hydrogen hubs across the country. These efforts are designed to bring down green hydrogen prices in India to globally competitive levels.

Industry response to green hydrogen cost reduction

The industry has welcomed the news of the anticipated price drop. Experts believe that if green hydrogen prices in India fall substantially, it will enhance the country’s ability to become a global hub for green hydrogen exports. Indian companies are already exploring international collaborations to tap into emerging markets for green hydrogen.

Several energy majors have announced green hydrogen projects in Gujarat, Rajasthan, and other states, with production targets aligned to the expected cost reductions. Lower green hydrogen prices in India would make these projects more viable and economically attractive.

Environmental and economic implications

A reduction in green hydrogen prices in India not only supports the country’s climate commitments under the Paris Agreement but also presents a unique economic opportunity. Transitioning to green hydrogen can help India reduce its crude oil imports, improve energy security, and generate thousands of new jobs in the clean energy sector.

Moreover, lower green hydrogen prices in India can aid in the development of green ammonia and green methanol, essential fuels for shipping and aviation industries aiming to cut emissions.

Challenges remain despite price fall optimism

While the forecasted drop in green hydrogen prices in India is promising, challenges remain. The current demand is still in its nascent stage, and large-scale adoption will require continued policy support, financing mechanisms, and international cooperation.

The report highlights that infrastructure development, particularly storage and transportation of hydrogen, must be accelerated to complement the falling prices. Creating a nationwide hydrogen economy will depend not just on affordability, but also on availability and accessibility.

Conclusion
The anticipated fall in green hydrogen prices in India marks a turning point in the country’s clean energy journey. With policy support, technological innovation, and private sector participation, India is well-positioned to become a leader in green hydrogen production. The coming years will be critical in transforming this potential into reality and unlocking the full benefits of a hydrogen-powered future.