India is positioning itself as a global leader in renewable hydrogen with ambitious cost targets and competitive tenders that could reshape international energy markets, Minister of New and Renewable Energy Pralhad Venkatesh Joshi said on Sept. 25.

The country, which recently concluded clean energy auctions at low prices, is nurturing the ambition to bring renewable hydrogen production costs below $2/kg by 2030, Joshi said at S&P Global's World Hydrogen India conference in New Delhi.

"We offer the most competitive prices," Joshi said. "This demonstrates that green hydrogen derivatives in India are rapidly becoming economically competitive."

India's renewable ammonia auctions, which concluded at a weighted average price of around $604/mt, offer a new price point for global trade and may encourage faster adoption of the clean fuel, industry members said recently.

"We achieved our goal of having 50% of our installed electricity capacity from non-fossil sources five years ahead of schedule, and in doing so, we have outperformed many developed nations," the minister said.

The "phenomenal growth in renewables has set the stage for our next target, making India a global hub for the production, realization and export of green hydrogen."

The nation's non-fossil fuel installed capacity stands at approximately 250GW at present, having crossed the halfway mark toward its 2030 target of 500GW, Joshi added.

Mission for hydrogen

The National Green Hydrogen Mission, launched in 2023 with an initial government outlay of $2.2 billion, targets production of at least 5 million mt of renewable hydrogen annually by 2030 and garnering 10% of global trade around the same time.

This will be supported by an additional 125GW of renewable energy capacity and is expected to attract nearly $100 billion in investments while creating over 600,000 jobs, the minister said.

"India's green hydrogen journey is moving from vision to action at incredible speed," Joshi said. "We are creating a stable, predictable and rewarding investment environment."

To support this growth, the government has implemented structural reforms, including establishing a national single window portal for clearances, waiving off interstate transmission charges for renewable hydrogen/ammonia plants commissioned before 2030, Joshi said.

The government is running five pilot projects to introduce renewable hydrogen in the steel sector and moving strategically in shipping from retrofitting vessels to acquiring new ships running on renewable methanol, Joshi added.

India has already awarded incentives for domestic manufacturing of 3GW of electrolysis capacity annually, with 1.1GW of electrolyzer capacity currently installed, Joshi said.

The country is building international partnerships, including working with Germany's H2Global program, to create long-term purchase agreements for renewable hydrogen derivatives produced in India for the EU, he added.

Indian developers are hoping to gain a low-cost advantage, which, in addition to the country's geographical location, can enable exports to the EU, Japan and South Korea.

Index for hydrogen

Noting S&P Global's work on creating an index for hydrogen, the minister said it would be beneficial to the global clean fuels industry.

"I am pleased to note that S&P Global is developing a future of hydrogen index for India by enhancing the transparency and aligning India's hydrogen efforts with global standards," Joshi said. "This index will boost investor confidence."

S&P Global Commodity Insights' Hydrogen Production Assets database shows that India has over 100 renewable hydrogen projects -- including multiple phases of some projects -- with a combined projected capacity of over 10 million mt/year.

Platts, part of Commodity Insights, last assessed Oman hydrogen produced via alkaline electrolysis, including capital expenditures, at $4.96/kg on Sept. 23, unchanged from a month earlier.

Platts assessed Japan hydrogen produced via alkaline electrolysis, including capex, at $4.16/kg, down 28.3% from a month ago.