India’s green hydrogen sector is attracting more than 50 companies across electrolyser manufacturing, hydrogen production, green ammonia, industrial consumption and exports, as government incentives and emerging international offtake agreements begin to establish a commercial pipeline.
As reported by Fortune India, the government has awarded 3 GW a year of electrolyser manufacturing capacity to 15 companies and 862,000 tonnes a year of green hydrogen production capacity to 18 companies under the National Green Hydrogen Mission. Separately, the Solar Energy Corporation of India (SECI) has discovered prices for supplying 724,000 tonnes a year of green ammonia to 13 fertiliser units, creating a potential demand base for producers.
The awards cover different parts of the value chain and do not represent commissioned capacity or current production. The next phase will depend on whether developers can finance, construct and operate projects and meet contracted delivery schedules.
Electrolyser manufacturing awards span major industrial groups
The Strategic Interventions for Green Hydrogen Transition (SIGHT) programme has awarded electrolyser manufacturing capacity in two tranches of 1,500 MW a year each. The awards are intended to establish domestic manufacturing capabilities for equipment used to produce hydrogen through electrolysis.
The first tranche included Reliance Electrolyser Manufacturing, L&T Electrolysers and John Cockerill Greenko Hydrogen Solutions, each awarded 300 MW a year. Adani New Industries received 198.5 MW, while Ohmium Operations received 137 MW. Other awardees included Advait Infratech, Matrix Gas and Renewables and homiHydrogen.
The second tranche included Waaree Clean Energy Solutions, with 300 MW a year, and Matrix Gas and Renewables, with 237 MW a year. Advait Energy Transitions received 200 MW, while Adani, Ohmium, Avaada Electrolyser, Newage Electrogen One, GH2 Solar, Eastern Electrolyser, Newtrace, Suryaashish KA1 Solar Park and other companies also secured allocations.
The awarded technologies include alkaline and proton-exchange membrane (PEM) electrolysers, alongside other technology approaches. The government has earmarked ₹4,440 crore for electrolyser manufacturing incentives under the programme.
The manufacturing allocations establish a pipeline of potential domestic equipment supply. Their contribution to the market will depend on facilities being commissioned, production scaling up and manufacturers securing customers.
Green hydrogen production capacity reaches 862,000 tonnes a year
Alongside equipment manufacturing, the government has awarded incentives for green hydrogen production under two SIGHT tranches.
The first tranche allocated 412,000 tonnes per annum (TPA) of production capacity. Awardees included Reliance Green Hydrogen and Green Chemicals, ACME Cleantech Solutions and Greenko ZeroC, each with 90,000 TPA. HHP Two received 75,000 TPA, while CESC Projects, UPL, Welspun New Energy, Torrent Power, JSW Neo Energy and Bharat Petroleum also received allocations.
The second tranche added 450,000 TPA. AM Green Ammonia, L&T Energy GreenTech, Green Infra Renewable Energy Farms and Waaree Clean Energy Solutions each received 90,000 TPA. Reliance secured an additional 49,000 TPA, while other awardees included Suryadeep KA1, GH2 Solar, Oriana Power and Matrix Gas and Renewables.
Together, the two tranches account for 862,000 TPA of awarded green hydrogen production capacity across 18 companies. The government has also awarded 20,000 TPA of green hydrogen production and supply capacity for refinery-linked procurement involving Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum.
The production awards provide a policy framework for scaling domestic supply. However, allocated capacity should not be equated with hydrogen already being produced or delivered to industrial customers.
Green ammonia contracts open a route to exports
Green ammonia is emerging as a major commercial route for Indian green hydrogen developers. It can be used in fertiliser production and traded internationally, allowing hydrogen producers to serve markets that require lower-carbon industrial feedstocks and fuels.
Hyderabad-based AM Green has secured a German government-backed H2Global auction award for renewable ammonia with a minimum contract value of €585 million over 10 years. Deliveries under the agreement are expected to begin in 2029. The company has also signed a binding agreement with German energy company Uniper to supply up to 500,000 tonnes of renewable ammonia annually, with first shipments expected as early as 2028.
L&T Energy GreenTech has signed a long-term take-or-pay agreement with Japan’s ITOCHU Corporation for 300,000 tonnes of green ammonia per year from its proposed facility at Kandla, Gujarat.
ACME Group has secured an agreement with Japan’s IHI Corporation for 405,000 tonnes a year of green ammonia. It has also signed a 10-year agreement with Mitsubishi Gas Chemical for 100,000 tonnes a year of green methanol from its Paradip facility.
These agreements offer developers greater visibility into potential demand and can support financing discussions. They do not, on their own, confirm that all proposed production capacity has reached final investment decision, construction completion or commercial operation.
SECI’s fertiliser procurement builds domestic demand
Domestic demand is another important part of India’s emerging green hydrogen market. SECI has conducted competitive bidding for the production and supply of 724,000 tonnes of green ammonia annually to 13 fertiliser units.
The government has reported discovered prices ranging from approximately ₹49.75 to ₹64.74 per kg. The supply arrangements are intended to provide long-term demand visibility and encourage investment in production facilities.
Fertiliser manufacturing offers a direct application for hydrogen-derived ammonia, potentially replacing some conventional ammonia produced using fossil fuels. The success of this transition will depend on the commissioning of supply projects, adherence to contract terms and the ability to deliver the required volumes at commercially viable costs.
The government’s National Green Hydrogen Mission, approved in January 2023 with an outlay of ₹19,744 crore, targets at least 5 million tonnes of green hydrogen production annually by 2030. Its support mechanisms cover production, manufacturing and demand creation, while industrial pilots are also being pursued in sectors such as steel, mobility and ports.
Bioenergy Business Analysis
India’s green hydrogen opportunity is developing across several linked markets: electrolyser manufacturing, hydrogen production, ammonia and methanol, industrial consumption and exports. Government awards have helped identify potential suppliers and projects, while long-term offtake agreements are beginning to connect planned production with domestic and international buyers.
The headline figures need to be interpreted carefully. The 3 GW-per-year electrolyser figure measures annual manufacturing capacity, while the 862,000 TPA figure measures awarded hydrogen production capacity. The 724,000 TPA green ammonia figure relates to a separate procurement programme for a hydrogen derivative. These numbers describe different parts of the value chain and should not be added together as a single measure of output.
Execution is now the central commercial test. Developers must secure financing, build renewable electricity and electrolysis infrastructure, commission plants and demonstrate reliable production. Export-oriented projects also need to meet buyers’ certification, emissions-accounting and delivery requirements. The costs and availability of renewable electricity, water, transport and conversion infrastructure will influence project economics.
Long-term contracts and government support can reduce some market uncertainty, but they do not eliminate construction, operational or price risks. For India to turn its green hydrogen ambitions into a substantial export business, announced capacity must translate into operating facilities and sustained deliveries to customers.
