Green Hydrogen in 2025: Market Trends, Key Players, and Pioneering Industry Applications

Introduction: Green Hydrogen in 2025 – A Snapshot of India’s Evolving Market

Welcome to the fifth installment of our Renewable Energy, Clean Technologies & Energy Efficiency in India blog series on hydrogen. As we navigate through 2025, India's ambitious journey towards a green hydrogen-powered future is rapidly gaining momentum, transitioning from policy blueprints to tangible market developments and pioneering industrial applications. The nation, poised to become a global leader in this transformative energy vector, is witnessing significant shifts in its energy landscape.

Driven by the National Green Hydrogen Mission (NGHM) targeting 5 million metric tonnes (MMT) of annual production by 2030, India is actively transitioning from its predominantly grey hydrogen landscape to a greener future. With a growing push to decarbonize sectors like steel, refining, and fertilizers, and with ambitious corporate players entering the field, India is witnessing the early industrialization of green hydrogen.

At SORT Consultancy, we are closely tracking these developments, understanding that a clear grasp of market trends, the strategies of key players, and real-world applications is crucial for stakeholders to capitalize on the immense opportunities. This blog post offers a comprehensive snapshot of India's green hydrogen market in 2025, delving into the current production landscape, robust growth projections, crucial cost trends, the strategic initiatives of major industrial players, and the groundbreaking applications driving decarbonization across critical sectors.

1. Current Production Landscape (2025 Snapshot): Where India Stands

While India stands as the world's third-largest energy consumer, its current hydrogen production profile is still dominated by conventional methods.

• Total Hydrogen Production: India's total hydrogen production stands at approximately 6.5 Million Metric Tonnes (MMT) annually (as of 2025). However, 95% of this is still grey hydrogen, produced from fossil fuels like natural gas (steam methane reforming) or coal (coal gasification), leading to significant carbon emissions. This highlights the immense potential and urgent need for a shift towards green alternatives.

• Green Hydrogen Capacity – 2025 Snapshot: Despite the grey dominance, 2025 marks a pivotal year for the burgeoning green hydrogen sector. Driven by the National Green Hydrogen Mission (NGHM) and its Strategic Interventions for Green Hydrogen Transition (SIGHT) program, India has already allocated 862,000 tonnes per annum (TPA) of green hydrogen capacity. While this represents only ~13% of total hydrogen production, it signals a nascent but fast-growing transition, supported by the NGHM’s incentives and the increasing availability of renewable energy from solar and wind sources.

2. Market Growth Projections: Strong Tailwinds Ahead

The Indian green hydrogen market is not just emerging; it's set for exponential growth, reflecting aggressive national targets and increasing industrial demand.

• Robust CAGR: The Indian green hydrogen market is expected to grow at a robust Compound Annual Growth Rate (CAGR) of 20.76% from 2024 to 2030. This rapid expansion is fueled by several key drivers:

  • • Industrial Decarbonization Mandates: Growing pressure on industries to reduce their carbon footprint.

    • State and Central Subsidies: Policy support from the NGHM, with its ₹19,744 crore outlay through 2029–30 (including ₹17,490 crore for the SIGHT program), actively fuels investment and innovation.

    • Global Export Demand: India aims to capture 10% of the global green hydrogen market, projected to exceed 100 MMT by 2030, with a particular focus on green ammonia exports to regions like the EU and Japan.

    • Technological Advancements: Continuous innovations in electrolyzer technology and renewable energy (RE) generation.

• Market Value Projections: By 2030, the market is expected to reach USD 8 billion, with long-term projections of USD 340 billion by 2050, driven by increasing industrial adoption and critical cost reductions. By 2030, India targets 5 MMT of annual green hydrogen production, backed by 125 GW of associated renewable energy and strong demand-side reforms.

3. Cost Trends and Competitiveness: Bridging the "Green Premium"

The economic viability of green hydrogen is paramount for its widespread adoption. India is aggressively working to drive down production costs.

• Current Green Hydrogen Cost (2025): As of 2025, the estimated cost of green hydrogen production in India is approximately ₹397/kg (approx. $4.65/kg). This is significantly higher when contrasted with grey hydrogen, which costs around $1.5–2/kg. This high cost currently remains a barrier to widespread adoption.

• Ambitious Target Cost by 2030: India’s abundant renewable energy resources and supportive policies are driving a concerted effort towards cost reduction. The ambitious goal is to bring this down to $2/kg (~₹170/kg) by 2030, a price point crucial for making green hydrogen competitive with fossil fuel-based alternatives. Key mechanisms enabling this include:

  • • Economies of Scale: Driven by massive investments in large-scale electrolyzer manufacturing and renewable energy capacity.

    • Technological Advancements: Innovations in electrolysis technologies, particularly in alkaline electrolyzers, which currently dominate the Indian market.

    • Policy Incentives: Production-linked incentives (PLIs) and waivers on Inter-State Transmission System (ISTS) charges, which significantly reduce production costs for new projects.

    • Global R&D Collaborations: Partnerships fostering shared research and development efforts.

4. Major Players and Their Green Hydrogen Strategies: Driving India’s Ecosystem

India’s green hydrogen market is being shaped by a strategic convergence of large private conglomerates and influential public sector undertakings (PSUs), each leveraging their unique strengths and making substantial commitments.

• Reliance Industries Limited (RIL): RIL is building an ambitious end-to-end green hydrogen ecosystem. They are investing ₹75,000 crore in a 1 GW green hydrogen facility in Jamnagar, Gujarat, targeting operational readiness by 2025. Their strategy includes establishing gigafactories for electrolyzers and solar panels at their Dhirubhai Ambani Green Energy Giga Complex. RIL aims for net-zero by 2035 and has set an audacious cost target of under $1/kg within a decade, positioning itself for global leadership.

• Adani Group: Adani New Industries Ltd. (ANIL) is committed to investing $50 billion to create what they envision as the world’s largest green hydrogen ecosystem, with a primary focus on green ammonia for exports. Key projects include a 30 GW renewable energy plant in Kutch and the deployment of a hydrogen-powered truck for mining operations.

• NTPC Ltd.: Through NTPC Green Energy Limited (NGEL), NTPC is developing a 1,500 TPD (tonnes per day) green hydrogen hub in Pudimadaka, Andhra Pradesh, backed by $21 billion in investments. They focus on integrating renewable energy with green hydrogen production for various applications. NTPC is also running successful demonstration projects in regions like Ladakh (with five hydrogen buses), Rajasthan, and Karnataka, exploring hydrogen use in mobility, blending, and ammonia production.

• Indian Oil Corporation Limited (IOCL): A major public sector undertaking, IOCL has set a bold goal for 50% of its hydrogen consumption to be green by 2050. They have an operational 10 TPD green hydrogen plant at their Mathura refinery and plans to replace grey hydrogen across all their refineries. IOCL is also actively exploring hydrogen mobility through the development of refueling networks.

• Other Key Public & Private Players:

  • • BPCL & HPCL: Both public sector oil refiners are investing in green hydrogen for refinery desulfurization and exploring mobility applications, with pilot projects in progress.

    • GAIL: India's largest gas transmission company is focusing on green hydrogen blending in natural gas networks, with a successful 5% blending pilot in Surat, scalable to 20%.

    • Larsen & Toubro (L&T): A leading engineering and construction conglomerate, L&T is partnering globally to manufacture electrolyzers and develop cost-effective, turnkey green hydrogen plants.

    • Acme Solar: A significant player in renewable energy, Acme is setting up a solar-powered green hydrogen plant in Tamil Nadu with substantial investment. (Note: The provided figure of $524.74 billion seems exceptionally high and may be a typo. This should likely be million or a smaller billion figure in reality, but for the purpose of adhering to the provided data, it is included as is).

    • Ohmium: A key player in advanced electrolyzer technology, also focused on delivering turnkey green hydrogen projects.

5. Pioneering Industrial Applications (2025 Onwards): Decarbonizing Core Sectors

Green hydrogen is transforming India’s industrial landscape, with several high-impact applications driven by policy and industry mandates.

• Steel Decarbonization: The steel sector, India's second-largest polluting industry, is undergoing a transformative shift. Green hydrogen is being used in Direct Reduced Iron (DRI) processes to replace coal, which can reduce CO2 emissions by up to 95%. Pilot projects by companies like JSW Steel and Tata Steel in Odisha and Maharashtra are actively underway, supported by ₹455 crore allocated for low-carbon steel projects through 2029–30.

• Green Ammonia & Fertilizers: Green ammonia, derived from green hydrogen, is a crucial and immediate application for fertilizer production, significantly reducing agricultural emissions and strengthening food system sustainability. Projects like Adani’s planned 1 MTPA green ammonia facility in Mundra and ONGC’s planned facility in Mangalore highlight this focus.

• Refineries: Green hydrogen is increasingly used in refinery processes like hydrocracking and desulfurization, leading to cleaner fuels with reduced lifecycle emissions. IOCL’s Mathura plant and BPCL’s initiatives exemplify this shift, requiring minimal downstream process changes for integration.

• Mobility Sector: While still in nascent stages, the mobility sector, especially heavy-duty transport, is seeing early adoption. The ₹496 crore allocated for mobility pilot projects supports hydrogen-powered trucks and buses. A significant milestone was the March 2025 flag-off of the first hydrogen truck fleet on the Delhi–Surat corridor. NTPC’s Leh project, with five hydrogen buses, and Adani’s hydrogen-powered mining truck are early successes. Furthermore, the "Hydrogen for Heritage" scheme aims for 35 fuel-cell train sets, with initial trials in Haryana by March 2025.

• Emerging Use Cases: Green hydrogen's versatility is leading to its exploration in other sectors:

  • • Cement & Glass: For process heat applications.

    • Shipping: Green hydrogen, or its derivatives like green ammonia and methanol, is gaining traction as a maritime fuel. ₹115 crore has been allocated for pilot projects in the shipping sector, with major ports like Paradip and Kandla being developed for ammonia bunkering.

    • Power Generation: Green hydrogen serves as a viable option for grid balancing, either by blending with natural gas in power plants or through dedicated hydrogen-fired turbines in renewable energy-rich regions.

Conclusion: A Promising Yet Challenging Market for Green Hydrogen in 2025

India’s green hydrogen market in 2025 is at a pivotal moment. It’s a phase where pilot projects are turning into scalable blueprints, and corporate ambition meets robust policy support. The nation is demonstrating a clear and rapid transition from its conventional hydrogen landscape.

The projected 20.76% CAGR, the determined push to reduce production costs to $2/kg by 2030, and the strategic leadership from players like Reliance, Adani, NTPC, and IOCL position India as a global contender. As sectors like steel, ammonia, refining, and mobility aggressively embrace green hydrogen, the country is laying a strong foundation for a sustainable, low-carbon future. While cost remains a key hurdle, the ecosystem is clearly moving toward scale, efficiency, and global competitiveness. The next five years will be instrumental in determining whether India can truly become a green hydrogen powerhouse—not just in ambition, but in concrete action.

Partner with SORT Consultancy for Your Green Hydrogen Journey

Are you an industrial leader, investor, or policymaker looking to navigate India's burgeoning green hydrogen market? The trends of 2025 show clear pathways for growth and decarbonization.

✅ SORT Consultancy offers expert guidance to:

• Identify market opportunities: Gain deep insights into market trends, cost dynamics, and demand forecasts to position your business effectively.

• Strategize industrial integration: Develop tailored roadmaps for adopting green hydrogen in your operations, from feasibility studies to project execution.

• Connect with key players & partners: Leverage our network and industry expertise to forge strategic alliances and secure off-take agreements in India's dynamic green hydrogen ecosystem.

📩 Email us at: [info@sortconsultancy.com]

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