India allocates 862,000 TPA green hydrogen capacity and 3,000 MW electrolyser manufacturing to boost clean energy transition.

New Delhi, India: India has announced a major push in its clean energy transition by allocating production rights for 862,000 tonnes per annum (TPA) of green hydrogen to 19 domestic companies, under the National Green Hydrogen Mission. The Ministry of New and Renewable Energy (MNRE) also awarded 3,000 MW of electrolyser manufacturing capacity to 15 firms, signaling a decisive step toward scaling up the country’s hydrogen economy.

The announcement, made at the 2025 FICCI Green Hydrogen Summit by Union Minister Shripad Naik, underscores India’s ambition to capture 10% of the projected 100 million tonnes global green hydrogen market by 2030.

According to MNRE, the allocations are designed to accelerate industrial decarbonization, strengthen local supply chains, and enhance export potential—particularly with the European Union through the India-EU Green Hydrogen Forum. The initiative aims to position India as a key player in the emerging hydrogen economy while bolstering energy security.

India’s renewable energy capacity has grown rapidly, rising from 160 GW in early 2023 to more than 237 GW by mid-2025. The quota-based allocation system introduced under the mission is expected to attract significant private investment and foster competitive bidding in future rounds.

However, the road ahead is not without challenges. High upfront investment requirements, water availability, infrastructure development, and ensuring market demand alignment remain critical hurdles.

The National Green Hydrogen Mission, launched in 2023 as part of India’s 2070 net-zero pledge, builds on the country’s rapid solar and wind deployment. With the latest capacity allocations, India is now moving from policy planning to large-scale execution, laying the foundation for global leadership in green hydrogen production and technology.

According to TechSci Research, India’s allocation of 862,000 TPA green hydrogen production capacity and 3,000 MW electrolyser manufacturing slots marks a significant boost for the chemical industry. Green hydrogen is expected to become a critical feedstock for decarbonizing energy-intensive chemical processes, particularly in the production of ammonia, methanol, and other derivatives widely used in fertilizers, plastics, and specialty chemicals. By ensuring large-scale domestic availability of green hydrogen, India can reduce reliance on fossil fuel–based hydrogen, lowering carbon intensity across chemical manufacturing. This also supports compliance with tightening global sustainability norms and enhances competitiveness in export markets, especially in the EU, where carbon border adjustment mechanisms are taking shape. Moreover, the development of local electrolyser capacity will drive technology adoption, lower costs, and encourage innovation in hydrogen-based chemical pathways. The initiative further strengthens supply chain resilience by reducing import dependence on conventional feedstocks while enabling new opportunities in green chemicals and allied sectors. Overall, the move not only aligns with India’s decarbonization goals but also positions the chemical industry for long-term growth in a low-carbon global economy.