The new hydrogen compatible combined cycle gas turbine – CCGT has a generation capacity of 670 MW, which is sufficient to supply electricity to around 1.2 million four-room HDB flats for a year.

This will be on top of over 20 CCGTs in the power system as of today, which are currently powered through natural gas, the Energy Market Authority – EMA said on Thursday, August 20, 2026.

The new project will bring a number of hydrogen-compatible CCGTs to five, or those under development, by 2031, which includes the one Tuas Power is going to build.

At present, CCGTs happen to be the most efficient thermal generation units that are available to meet Singapore’s demand.

In these units, a gas-fired power plant burns natural gas as well as air so as to make the turbine spin and produce electricity.

In CCGTs, this is an additional turbine, driven by steam, which generates more electricity.

The announcement from the EMA comes after a call in April 2026 for energy companies to go ahead and construct almost three new hydrogen-ready power plants in 2031 and 2032 to meet the electricity demand in Singapore.

Singapore’s electricity demand is projected to increase significantly in the years ahead, fuelled by robust economic growth, transport electrification and the growth of energy-intensive industries like semiconductor manufacturing and data centres, confirmed the authority.

Its forecasts predict the peak electricity demand will increase by between 2.4% and 4.8% per year over the next decade.

It is well to be noted that the peak demand is expected to be 9.6 gigawatt – GW to 11.4 GW in 2031.

Interestingly, preparation is vital to meet Singapore’s increasing demand, added Puah Kok Keong, the EMA chief executive.

He added that “Tuas Power’s new hydrogen compatible combined cycle gas turbine – CCGT will provide the capacity we need for the growth of energy-intensive sectors.” As per him, the CCGTs fired by natural gas offer dependable baseload power as Singapore explores multiple routes leading to a cleaner energy future.

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The clean hydrogen production facility is being built to provide hydrogen at a cost far below what fleets and transit agencies are paying today, making clean hydrogen a viable alternative when it comes to the Inland Empire and the broader California market. The initial production is aimed at 1.5 to 2 tonnes of clean hydrogen per day, with plans to scale to 10 tonnes per day.

Several clean production paths are under consideration

THD and the airport are assessing multiple proven production pathways, with the ultimate option to be determined by available clean-energy grants and permitting. Options being considered include –

• On-site solar-powered electrolysis for green hydrogen generation
• Reforming of steam methane by natural gas
• Advanced reforming technologies like ethanol-to-hydrogen that have garnered strong interest from regional air quality and clean energy agencies

This flexibility guarantees that the cleanest and most cost-effective technology can be adopted as the project proceeds.

Partnership structure and regional effect

SBIAA will offer the airport site and long-term infrastructure support, while Total Hydrogen Development is going to be the project developer, financing, and advancing the facility. The project will also generate skilled local jobs and increase the profile of San Bernardino as a clean-energy hub for bringing in related industries like zero-emission fleets and hydrogen-powered aviation, as well as fuel-cell logistics, the company said.

As per Greg Heller, Project Lead, Total Hydrogen Development, “This project is about producing clean, affordable hydrogen right here at San Bernardino and delivering it to the fleets and businesses that need it most. “We are proud to work with the San Bernardino International Airport Authority to bring low-cost hydrogen directly to the California market.”

According to the President of the San Bernardino International Airport Authority, Mayor Penny Lilburn, “Our airport is proud to create a partnership and envision a project that advances clean energy, supports local jobs, and positions our region as a leader in sustainable energy.”

Timeline and Future Actions

The project team is working with local fleet operators and transit agencies, as well as business and industrial users, which may profit from locally produced, cost-effective, low-carbon hydrogen. The project is set to reach full operational status in 2027.

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Decarbonizing the Steel Industry: The Shift to Green Steel

One of the most significant drivers of hydrogen demand in India is the primary steel sector. India is one of the world’s largest steel producers, and the industry currently relies heavily on coking coal for the reduction of iron ore, a process that releases massive amounts of carbon dioxide. The transition toward “Green Steel” involves replacing coal with hydrogen in the Direct Reduced Iron (DRI) process. This shift represents a monumental opportunity to eliminate a major source of industrial emissions. As global buyers increasingly demand low-carbon materials, Indian steelmakers are accelerating their hydrogen adoption to maintain their competitive edge in international markets. This industrial demand is expected to be a cornerstone of the hydrogen economy, requiring gigawatt-scale production facilities to meet the needs of massive integrated steel plants across the country.

The Role of Refineries as Early Adopters

The petroleum refining sector is currently the largest consumer of hydrogen, and it is also the sector where hydrogen demand in India is seeing the most immediate transition to green sources. Refineries use hydrogen for desulfurization and hydrocracking to produce cleaner liquid fuels. By replacing the currently used grey hydrogen with green hydrogen, refineries can significantly lower their operational carbon footprint without changing their core processes. Many of India’s state-owned and private refineries have already announced plans to install multi-megawatt electrolysers to meet their internal demand. This “captive consumption” model provides a stable and predictable demand signal that is vital for the early-stage development of the green hydrogen market, allowing developers to scale their production with the certainty of a guaranteed buyer.

Revolutionizing the Chemical and Fertilizer Sectors

The chemical and fertilizer industries are also key contributors to the rising hydrogen demand in India. Hydrogen is the primary feedstock for ammonia synthesis, which is the foundation of nitrogenous fertilizers. As a nation with a vast agricultural sector, India’s demand for ammonia is consistently high. Transitioning to green ammonia not only helps in decarbonizing the agricultural supply chain but also reduces the nation’s reliance on imported natural gas. Furthermore, the chemical industry is exploring the use of green hydrogen in the production of methanol and other high-value chemicals. This diversification of demand across the chemical value chain ensures that the hydrogen economy has a broad and resilient base, with multiple pathways for growth and innovation in sustainable chemical manufacturing.

Expanding Hydrogen Demand in Heavy-Duty Mobility and Shipping

Beyond the traditional industrial sectors, hydrogen demand in India is poised for explosive growth in the heavy-duty mobility and maritime sectors. While battery electric vehicles (BEVs) are suitable for light passenger cars, they face significant weight and range limitations in long-haul trucking and shipping. Hydrogen fuel cell electric vehicles (FCEVs) offer a viable solution for decarbonizing the transport of goods across India’s vast highway network. Similarly, the shipping industry is looking toward hydrogen and ammonia as a way to meet international emission standards. Developing a network of hydrogen refuelling stations and bunkering facilities will unlock this new segment of demand, creating a dynamic market where hydrogen serves as a vital energy source for the nation’s logistics and trade sectors.

Power Generation and Long-Duration Energy Storage

As India continues to add massive amounts of renewable energy to its grid, the need for long-duration storage is becoming increasingly critical. Hydrogen demand in India is starting to include its use as a storage medium for surplus solar and wind power. During periods of peak generation, excess electricity can be used to produce hydrogen, which is then stored and used to generate power through fuel cells or hydrogen-blended turbines during periods of low renewable output. This “Power-to-Gas-to-Power” cycle helps in balancing the grid and ensures a reliable supply of clean energy twenty-four-seven. This emerging demand segment highlights hydrogen’s role not just as a fuel or feedstock, but as a critical infrastructure component for a resilient and sustainable national power grid.

Financial Risk Mitigation for Industrial Hydrogen Users

For many industrial entities, the most daunting aspect of the growing hydrogen demand in India is the financial risk associated with price volatility and high capital expenditure. To address this, the market is seeing the emergence of innovative financial instruments such as “contracts-for-difference” (CfDs) and green hydrogen purchase agreements (GHPAs). These tools allow industrial users to lock in a long-term price for hydrogen, providing the stability needed to make large-scale retrofitting decisions. Furthermore, the integration of hydrogen projects into the broader sustainable finance market utilizing green bonds and low-interest transition loans is helping industries manage the upfront costs of new equipment. By mitigating these financial barriers, India can accelerate the pace of adoption, ensuring that the industrial demand for clean hydrogen is not just an aspiration but a commercially viable reality that supports long-term growth and competitiveness.

Integrating Hydrogen Demand with Renewable Grid Balancing

An emerging trend in the management of hydrogen demand in India is its integration with the national renewable energy grid. Large-scale industrial consumers are increasingly looking at hydrogen production not just as a fuel source but as a way to balance their own energy consumption. During periods of surplus solar or wind generation, these industries can use the excess power to produce and store hydrogen, which can then be used as a backup fuel or feedstock during periods of low renewable output. This “demand-side management” helps in reducing the overall energy costs for the industry and improves the stability of the national grid. This dual role of hydrogen as both a feedstock and a grid stabilizer is a key factor in driving demand, as it provides multiple layers of economic and operational value to industrial users across the country.

Building Technical Capability and Safety Standards

The adoption of hydrogen across diverse industries requires a high level of technical capability and a rigorous commitment to safety. Hydrogen is a highly diffusive gas with unique properties that require specialized handling and storage protocols. Industries must invest in training their workforce to manage hydrogen-based processes safely and efficiently. Furthermore, the development of national standards for equipment and operations is essential for building confidence among industrial users. By ensuring that every step of the transition is backed by robust engineering and safety standards, the industry can avoid accidents and build the public and regulatory trust needed for long-term growth. This focus on technical excellence is a non-negotiable requirement for the sustainable and safe expansion of hydrogen demand across all industrial corridors in India.

Future Outlook: A New Era of Industrial Growth

The future of hydrogen demand in India is one of continuous expansion and diversification. As the technology matures and the cost of production falls, we will see green hydrogen permeate even more sectors of the economy, from cement manufacturing to decentralized heating and cooling. This transition is not just about replacing one fuel with another; it is about reinventing the very foundation of industrial growth in the 21st century. The lessons learned in the current phase of adoption will provide the blueprint for a future where economic prosperity and environmental stewardship are inextricably linked. By embracing hydrogen, India’s industries are not only securing their own future but are also leading the nation toward a cleaner, more resilient, and energy-independent tomorrow, ensuring that the industrial engine of the country is powered by the most sustainable and efficient energy carrier available to modern science.

The Role of Public-Private Partnerships in Scaling Demand

The accelerated growth of hydrogen demand in India is increasingly dependent on the success of public-private partnerships (PPPs) that bridge the gap between policy intent and industrial execution. These collaborations allow for the sharing of technical risks and the pooling of capital for large-scale infrastructure projects like dedicated pipelines and industrial clusters. By working together, the government and the private sector can develop standardized protocols for hydrogen safety and operational excellence, building the confidence needed for wider industrial adoption. These partnerships are particularly vital for the “Hydrogen Valley” initiatives, where integrated ecosystems of production and consumption are being developed. This collaborative model ensures that the transition to green hydrogen is not just a series of isolated projects but a coordinated national effort that drives a sustainable and resilient industrial revolution for all.

Enhancing Global Competitiveness through Sustainable Industrialization

Ultimately, the surge in hydrogen demand in India is a strategic move to enhance the nation’s global competitiveness in an era where sustainability is a primary business requirement. By decarbonizing its industrial engine, India is ensuring that its products whether steel, chemicals, or refined fuels meet the highest international environmental standards. This commitment to sustainable industrialization allows Indian firms to access premium markets and attract global investment that is increasingly focused on ESG performance. The transition to hydrogen is thus not just an environmental obligation but a powerful driver for economic modernization and brand value. By leading the way in industrial decarbonization, India is positioning itself as a global leader in the green economy, ensuring long-term prosperity and environmental stewardship for its citizens and the world.

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The Strategic Importance of Green Ammonia in Modern Industry

Green ammonia is currently the most significant derivative in the hydrogen ecosystem, and its role in the Indian market cannot be overstated. Traditionally, ammonia has been produced using natural gas through the carbon-intensive Haber-Bosch process, serving as a critical feedstock for nitrogenous fertilizers. The shift toward green ammonia hydrogen involves using green hydrogen as the primary input, effectively eliminating the carbon footprint of fertilizer production. For India, this transition is vital for achieving food security and environmental sustainability simultaneously. By producing green ammonia domestically, the country can reduce its heavy reliance on imported natural gas, stabilizing agricultural costs and protecting the national economy from the volatility of international energy prices. This internal demand provides a massive and reliable foundation for the growth of the green ammonia market.

Expanding into Hydrogen Derivatives: Methanol and Sustainable Fuels

Beyond ammonia, the broader category of green ammonia hydrogen derivatives includes promising fuels like green methanol and sustainable aviation fuel (SAF). Green methanol, produced by combining green hydrogen with captured carbon dioxide, serves as a versatile chemical building block and a potential fuel for the shipping industry. Similarly, the development of SAF is becoming increasingly important as the aviation sector looks to meet stringent international emission standards. For India, investing in these derivatives represents an opportunity to diversify its industrial output and capture a larger share of the global clean energy market. These products offer higher energy density and easier handling compared to pure hydrogen, making them the preferred choice for sectors that require long-duration storage and long-distance transport.

Decarbonizing the Maritime and Shipping Sector

One of the most exciting growth areas for green ammonia hydrogen derivatives is the maritime industry. As the International Maritime Organization (IMO) sets more aggressive targets for reducing greenhouse gas emissions from ships, the search for carbon-neutral fuels has intensified. Ammonia is emerging as a frontrunner due to its existing global logistics infrastructure and its ability to be used in modified internal combustion engines or fuel cells. India, with its extensive coastline and major ports, is strategically positioned to become a global hub for ammonia bunkering. By providing clean fuels to international shipping fleets, India can drive significant market growth and attract global investment into its port infrastructure, further integrating itself into the worldwide energy trade and maritime logistics network.

The Role of Exports in Scaling the Market for Derivatives

The growth of green ammonia hydrogen derivatives in India is also being fueled by the massive potential for international exports. Countries in Europe and East Asia, which have high industrial energy needs but limited land for renewable generation, are increasingly looking to import green fuels. India’s ability to produce these derivatives at scale and at a competitive cost makes it an ideal partner for these energy-deficit nations. The export market for green ammonia is expected to be even larger than the market for pure hydrogen in the near term, given the ease of transport. By securing long-term export contracts, Indian developers can improve the financial viability of their projects and drive the economies of scale needed to bring down costs for the domestic market as well.

Technological Innovation in Synthesis and Catalysis

To maintain its leadership in the market for green ammonia hydrogen derivatives, India must focus on continuous technological innovation. This involves developing more efficient catalysts for ammonia synthesis and improving the processes for capturing and utilizing carbon dioxide in methanol production. Collaborative research between Indian scientific institutions and the private sector is focusing on lowering the energy intensity of these conversion processes. Furthermore, advancements in small-scale, modular synthesis plants are being explored to allow for decentralized production near renewable energy sources or industrial consumers. These technological breakthroughs are essential for ensuring that Indian derivatives remain cost-competitive and meet the highest quality standards demanded by the global market.

The Role of Digital Tracking in Derivative Certification

As the market for green ammonia hydrogen derivatives grows, the need for transparent and verifiable certification is becoming increasingly critical. Global buyers are demanding precise data on the “carbon intensity” of every ton of ammonia or methanol they purchase. To meet this demand, the Indian industry is adopting blockchain-based tracking systems and digital certificates of origin. These tools provide a tamper-proof record of the energy used in production, the efficiency of the conversion process, and the carbon footprint of the entire supply chain. This digital layer of trust is essential for securing premium prices in the international market and for complying with the evolving regulations in importing nations. By building a reputation for data integrity, India can ensure that its derivatives are viewed as high-quality, sustainable products that contribute directly to the global goals of decarbonization and climate resilience.

Developing Strategic Reserves for Energy and Agricultural Security

Beyond their role in trade, green ammonia hydrogen derivatives offer India a unique opportunity to build strategic energy and agricultural reserves. Unlike pure hydrogen, ammonia can be stored in large quantities for long periods without significant losses. By building a national network of ammonia storage hubs, the government can create a buffer against global supply chain disruptions and seasonal fluctuations in fertilizer demand. This strategic reserve not only enhances the nation’s agricultural resilience but also provides a stable source of clean fuel for emergency power generation. This dual-purpose use of derivatives as both a trade commodity and a strategic asset adds another layer of value to the green hydrogen economy, reinforcing the national commitment to a secure and sustainable future that is insulated from the uncertainties of the global fossil fuel market.

Policy Frameworks and Market Incentives for Derivatives

The expansion of the market for green ammonia hydrogen derivatives in India is being supported by a growing framework of policy incentives and market-based signals. The government is exploring mandates for the blending of green ammonia in fertilizers and the use of green fuels in the maritime sector. Furthermore, the development of a domestic carbon credit market will provide a financial incentive for industries to switch to low-carbon derivatives. These policy interventions are crucial for bridging the cost gap in the early stages of market development. By providing long-term visibility and financial certainty, the government is encouraging private sector players to make the significant capital investments needed to build world-class production facilities for these clean energy compounds, ensuring that the market for derivatives remains a key pillar of India’s green industrial strategy.

Future Outlook: A New Standard for Clean Energy Trade

The future of the Indian energy market is inextricably linked to the success of green ammonia hydrogen derivatives. As these versatile compounds become the new standard for clean energy trade, they will drive a fundamental shift in the nation’s economic structure. India will transition from a major energy importer to a leading provider of sustainable industrial solutions. The lessons learned in the current scaling phase will provide the foundation for a resilient and energy-independent future. By continuing to innovate and expand its production capacity, India is not just meeting its own environmental goals but is also providing the tools that the world needs to achieve a truly carbon-neutral and prosperous global economy for all, powered by the unmatched versatility of hydrogen-based derivatives.

The Impact of International Trade Agreements on Derivative Growth

The growth of the market for green ammonia hydrogen derivatives in India is also being shaped by new-age international trade agreements that prioritize clean energy and environmental cooperation. These agreements facilitate the reduction of trade barriers, the harmonization of technical standards, and the joint investment in cross-border supply chains. By entering into these strategic alliances, India can ensure that its green derivatives have preferential access to high-value markets, further enhancing the economic viability of its production projects. These trade frameworks also provide a platform for technology sharing and collaborative R&D, ensuring that India remains at the forefront of global innovation in sustainable fuels. By leveraging these international partnerships, India is building a resilient and interconnected market for derivatives that is capable of driving a global energy renaissance, anchored in transparency, capability, and a shared vision for a carbon-neutral future.

Scaling up Sustainable Aviation and Maritime Fuel Ecosystems

The future of green ammonia hydrogen derivatives in India will see a significant expansion into the specialized sectors of sustainable aviation fuel (SAF) and maritime bunkering. As the world’s transportation sectors look to meet aggressive net-zero targets, the demand for these high-energy-density derivatives will skyrocket. India is already laying the groundwork for this transition by developing the necessary refinery and port infrastructure to produce and deliver these fuels at scale. By becoming a primary supplier of SAF and green ammonia for shipping, India can capture a significant share of the global transport energy market. This strategic focus not only drives industrial growth but also positions India as a vital enabler of global decarbonization, ensuring that the arteries of international trade and travel are powered by clean, Indian-made energy solutions for generations to come.

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The Strategic Vision for Global Green Hydrogen Exports

At the heart of the hydrogen trade India strategy is the ambition to become a global hub for green hydrogen and its derivatives. The National Green Hydrogen Mission sets a clear target for India to capture a significant share of the burgeoning global market, which is expected to reach hundreds of billions of dollars over the coming decades. This vision is supported by the country’s ability to produce green hydrogen at some of the world’s lowest costs, thanks to its vast solar and wind resources. By focusing on exporting to energy-deficit nations like Germany, Japan, and South Korea, India can provide a vital solution for countries that lack the domestic renewable capacity to produce their own green fuel. This strategic alignment not only enhances India’s geopolitical standing but also provides a resilient and long-term revenue stream that is decoupled from the volatility of fossil fuel markets.

The Role of Green Ammonia as a Trade Enabler

One of the most practical components of the hydrogen trade India strategy is the focus on green ammonia. While transporting pure hydrogen over long distances remains a logistical challenge, ammonia serves as a highly efficient and stable carrier. It is easier to liquefy and can be transported using existing chemical tankers and infrastructure. India’s established fertilizer industry provides a strong foundation for scaling green ammonia production, allowing for a seamless transition from domestic use to international trade. By positioning itself as a leading supplier of green ammonia, India can cater to both the industrial demand for fertilizers and the emerging market for clean maritime fuels and power generation, significantly diversifying its export portfolio and enhancing the overall bankability of its hydrogen projects.

Developing World-Class Green Port Infrastructure

To facilitate large-scale international trade, the development of specialized port infrastructure is a non-negotiable requirement of the hydrogen trade India strategy. Major Indian ports, such as those in Gujarat, Odisha, and Tamil Nadu, are being upgraded to handle the unique requirements of green hydrogen and ammonia. This involves the construction of dedicated storage terminals, cryogenic loading facilities, and bunkering stations for green ships. These “Hydrogen Ports” will act as the gateway for India’s clean energy to reach global markets. By integrating production hubs directly with port infrastructure, the industry can minimize the cost of internal transport and ensure that the export process is as efficient as possible. These investments are crucial for ensuring that India can compete with other emerging exporters like Chile and Australia on a level playing field.

Aligning with International Standards and Certification

A critical challenge for the hydrogen trade India strategy is the need to align with rapidly evolving international standards for green fuel certification. Global buyers require rigorous proof that the hydrogen they import is truly “green,” with near-zero carbon intensity across its entire lifecycle. India is actively working to harmonize its domestic certification frameworks with international benchmarks such as those being developed in the European Union and under the IPHE (International Partnership for Hydrogen and Fuel Cells in the Economy). By ensuring that every kilogram of hydrogen exported is backed by a credible and transparent guarantee of origin, India can build the necessary trust with international off-takers and secure long-term premium contracts that reflect the environmental value of the fuel.

Strategic Energy Partnerships and Bilateral Agreements

The expansion of the hydrogen trade India strategy is being facilitated through high-level diplomatic efforts and bilateral energy partnerships. India has already signed several Memoranda of Understanding (MoUs) with key consuming nations to collaborate on technology development and supply chain integration. These agreements often involve joint investment in production facilities and a commitment to long-term offtake at competitive prices. Such partnerships provide the financial certainty needed for developers to reach financial close on mega-projects. Furthermore, these diplomatic ties allow India to play a leading role in shaping global hydrogen policy and trade rules, ensuring that the needs of emerging economies are represented in the new international energy order.

The Strategic Role of Hydrogen Valleys in Export Hubs

To maximize the efficiency of the hydrogen trade India strategy, the development of “Hydrogen Valleys” near major export ports is becoming a central theme. these industrial clusters bring together hydrogen production, ammonia synthesis, and port logistics within a single, high-efficiency ecosystem. By minimizing the distance between the point of production and the point of export, these valleys significantly reduce the carbon footprint and cost associated with internal transport. Furthermore, these clusters foster a collaborative environment where shared infrastructure such as high-capacity pipelines and cryogenic storage can be utilized by multiple developers, improving the overall project economics. These valleys are not just logistical nodes they are centers of excellence where the latest technologies in hydrogen storage and handling are deployed, ensuring that India’s exports meet the highest global standards of safety and efficiency.

Navigating Global Trade Regulations and Carbon Border Taxes

A critical aspect of the hydrogen trade India strategy is the proactive navigation of international trade regulations, particularly the emerging carbon border adjustment mechanisms (CBAM) in markets like Europe. These taxes are designed to prevent “carbon leakage” by taxing imports based on their carbon intensity. For India, this represents a unique opportunity to gain a competitive advantage. By exporting certified green hydrogen and ammonia with a verified near-zero carbon footprint, Indian producers can avoid these taxes and command a premium price in the international market. The strategy involves building a transparent and digital tracking system that can provide granular data on the emissions associated with every shipment. This commitment to regulatory compliance and data transparency is what will ultimately distinguish India as a preferred supplier in a global market that is increasingly valuing environmental integrity over low-cost production.

The Economic Multiplier: Beyond Foreign Exchange

While the inflow of foreign exchange is a major benefit, the hydrogen trade India strategy also creates a significant economic multiplier effect within the domestic economy. The construction of massive export-oriented facilities creates thousands of high-skilled jobs in engineering, project management, and specialized construction. Furthermore, the growth of the export sector drives demand for locally manufactured electrolysers and components, supporting the nation’s “Make in India” ambitions. This interconnectedness ensures that the benefits of the global hydrogen trade are felt far beyond the energy sector, stimulating growth in the chemical, maritime, and steel industries as well. By positioning itself as a clean energy exporter, India is effectively exporting its renewable energy potential, turning a natural resource into a driver for a broad-based and sustainable industrial revolution that enhances the livelihoods of its citizens.

Conclusion: Leading the Global Energy Renaissance

The hydrogen trade India strategy represents a bold new chapter in the nation’s history, one where it moves from an energy-dependent importer to a global leader in clean fuel exports. By harmonizing policy, infrastructure, and international diplomacy, India is creating a blueprint for how a developing nation can lead the global energy renaissance. As the first shipments of green ammonia leave Indian shores, they will signal the arrival of a new era one where clean energy flows from the subcontinent to the world, powering a global transition toward sustainability. The legacy of this strategy will be a resilient, prosperous, and carbon-neutral India that stands at the heart of the 21st-century energy landscape, inspiring the world with its vision and industrial strength, and ensuring that the global energy transition is powered by Indian innovation and capability.

The Role of Digital Trade Platforms and Transparency

As the hydrogen trade India strategy matures, the adoption of digital trade platforms will play a crucial role in enhancing transparency and efficiency in global transactions. These platforms allow for real-time tracking of shipments, automated certification of green credentials, and seamless integration with international customs and logistics networks. By reducing the administrative burden and ensuring data integrity, India can facilitate smoother trade flows and build deeper trust with international partners. This digital layer is particularly important for the export of green ammonia and liquid hydrogen, where the verification of “greenness” is a primary value driver. By leading the way in digital energy trade, India can set new standards for transparency and accountability, ensuring that its clean fuel exports are recognized as world-class products that meet the highest environmental and regulatory requirements in the global marketplace.

Strategic Market Diversification and Long-Term Stability

To ensure the long-term success of the hydrogen trade India strategy, the nation must focus on strategic market diversification, reaching beyond traditional partners to emerging clean energy markets in Southeast Asia and Africa. By building a diverse portfolio of export destinations, India can hedge against regional economic fluctuations and changes in policy. This proactive approach to market expansion involves developing specialized trade agreements that address the unique needs of different regions, such as decentralized energy solutions or industrial decarbonization support. By positioning itself as a versatile and reliable energy partner, India can secure its role as a central hub in the evolving global energy order, driving prosperity at home while supporting a sustainable energy transition worldwide through its unmatched capability in clean fuel production and trade.

The post India’s Hydrogen Trade Strategy and Export Opportunities first appeared on Hydrogen Informs.

The Foundation of a Comprehensive Hydrogen Policy Framework

A truly effective hydrogen policy India must address every link in the value chain, from renewable energy generation to the end-use in hard-to-abate sectors. The current policy landscape has already provided significant wins, such as the waiver of inter-state transmission charges and the introduction of Production Linked Incentives (PLI) for manufacturing. However, the next phase of policy must focus on the operational challenges of project execution. This includes streamlined land acquisition processes, priority water allocation for electrolysis, and a “single-window” clearance system that reduces the time from project conception to commissioning. By creating a frictionless regulatory environment, the government can significantly lower the “soft costs” of hydrogen projects, making them more competitive and attractive to international financiers who are sensitive to bureaucratic delays and policy uncertainty.

Creating Strong Demand Signals Through Consumption Mandates

One of the most powerful tools in the hydrogen policy India toolkit is the implementation of mandatory green hydrogen consumption targets. For a market to thrive, producers must have the certainty that there will be a buyer for their fuel at a sustainable price. By setting clear mandates for sectors like petroleum refining, fertilizer production, and city gas distribution to blend a specific percentage of green hydrogen into their processes, the government can create an “artificial” but necessary demand that jump-starts the market. These mandates provide the creditworthiness needed for offtake agreements, which are the cornerstone of project bankability. Furthermore, these targets should be scaled over time, providing a clear roadmap for industries to plan their transitions and invest in the necessary retrofitting and new infrastructure.

The Role of Standards, Certification, and Quality Control

For the Indian hydrogen market to integrate with the global energy trade, the hydrogen policy India must prioritize the development of rigorous standards and certification mechanisms. International buyers require proof that the hydrogen produced in India meets specific “green” criteria, including near-zero carbon intensity across its entire lifecycle. The development of a national “Green Hydrogen Standard” that is harmonized with global benchmarks like the European Union’s Delegated Acts or the IPHE guidelines is essential. This certification process must be transparent, digital, and verifiable to prevent “greenwashing” and to ensure that Indian hydrogen can command a premium in the global market. Furthermore, technical standards for equipment like electrolysers and storage tanks are needed to ensure the safety and interoperability of the national infrastructure.

Financial Incentives Beyond PLI: Tax Breaks and Carbon Credits

While the PLI schemes are excellent for manufacturing, the broader hydrogen policy India needs to explore additional financial incentives to support the operational phase of hydrogen projects. This could include accelerated depreciation for hydrogen-related assets, exemptions from electricity duties, and lower GST rates for green hydrogen and its derivatives. Another critical element is the development of a robust domestic carbon credit market. By allowing green hydrogen producers to earn and trade carbon credits, the policy can provide a supplementary revenue stream that helps bridge the price gap between green and grey hydrogen. This market-based approach incentivizes innovation and rewards the most efficient producers, driving down the overall cost of the transition for the entire economy.

Strengthening Infrastructure Development and Right-of-Way

Policy and market signals are also needed to drive the massive infrastructure investments required for the hydrogen economy. The hydrogen policy India should provide clear guidelines for the development of dedicated hydrogen pipelines and large-scale storage facilities. This includes facilitating the right-of-way (RoW) for pipelines and providing incentives for the development of “Hydrogen Hubs” or clusters. By designating specific geographic regions as special energy zones with simplified regulations, the government can encourage the co-location of production and consumption, minimizing logistical hurdles. Policy support for the digital infrastructure such as smart grids and IoT-based monitoring is also vital for managing a decentralized and complex energy system that relies on the seamless interplay of electricity and gas.

The Need for a “Green Hydrogen” Common Procurement Platform

To further strengthen the market signals, a critical addition to the hydrogen policy India should be the establishment of a common procurement platform for green hydrogen. Much like the model used for scaling solar energy, a centralized agency could aggregate the demand from multiple industrial users and conduct transparent auctions for green hydrogen supply. This would provide producers with the long-term revenue certainty they need to secure low-cost financing, while also ensuring that industrial buyers have access to the most competitive prices. Such a platform would effectively eliminate the transaction costs associated with bilateral offtake agreements and create a unified, national price for green hydrogen. By simplifying the buying process, the government can accelerate the adoption of hydrogen across small and medium enterprises, ensuring that the clean energy transition is inclusive and broad-based.

Enhancing Policy Coordination Across Central and State Governments

A significant challenge in the current hydrogen policy India landscape is the need for better coordination between the central government and various state authorities. While the center provides the broad policy direction and financial incentives, many of the practical requirements such as land allocation, water rights, and state-level tax exemptions are controlled by the states. To provide stronger signals to developers, the policy must include a mechanism for harmonizing state-level regulations and creating a unified “hydrogen single-window” system. This would prevent the emergence of a fragmented market where different states have vastly different rules and costs. By ensuring policy consistency across the country, India can offer a more predictable and stable environment for large-scale energy investments, further solidifying its position as a global leader in the hydrogen economy.

International Cooperation and Diplomatic Alignment

India’s hydrogen policy is not being developed in a vacuum it is part of a global shift toward clean energy. Therefore, the hydrogen policy India must include a strong element of international diplomacy and cooperation. This involves participating in global forums to shape trade rules, harmonizing standards, and collaborating on cross-border infrastructure projects. Bilateral agreements with major energy importers can secure long-term offtake for Indian producers, while partnerships with technology leaders can facilitate the transfer of advanced electrolysis and storage methods. By aligning its domestic policy with global trends, India can ensure that its hydrogen market is not isolated but is a central and vibrant part of the emerging worldwide clean energy network, contributing to a more resilient and sustainable global energy order.

Future Outlook: A Dynamic and Evolving Policy Landscape

The future of the hydrogen economy in India will be defined by the agility and foresight of its policymakers. The hydrogen policy India is not a static document but a dynamic framework that must evolve as the technology matures and the market grows. Continuous engagement with industry stakeholders, researchers, and financial institutions is essential for identifying and addressing new challenges as they arise. As the first wave of large-scale projects begins to deliver clean energy, the data gathered will provide the insights needed to further refine the policy signals. Ultimately, a strong and clear policy will be the legacy that enables India to lead the world in the clean energy transition, creating a sustainable, prosperous, and carbon-neutral future for generations to come, built on the foundation of strategic clarity and industrial excellence.

Enhancing the Role of Financial Regulators in Hydrogen Policy

To truly unlock the capital needed for the hydrogen economy, the hydrogen policy India must actively involve financial regulators in the development of “green taxonomy” and sustainability reporting standards. By providing clear definitions of what constitutes a “green hydrogen investment,” regulators can help in directing the massive flows of global capital toward the most impactful projects. This clarity is essential for the growth of the green bond market and for the integration of hydrogen projects into the broader sustainable finance ecosystem. Furthermore, policy support for risk-mitigation tools such as first-loss guarantees and partial risk insurance can help in lowering the cost of debt for early-stage commercial ventures. By creating a financially supportive and regulatory-sound environment, India can ensure that the hydrogen transition is not just a technological success but a financially resilient industrial movement that attracts the world’s most sophisticated investors.

Conclusion: A Legacy of Strategic Clarity and Excellence

The evolution of the hydrogen policy India landscape represents a bold commitment to a future where strategic clarity and industrial excellence drive national prosperity. By building a comprehensive and dynamic framework that addresses every challenge from cost gaps to infrastructure and certification India is creating the conditions for a self-sustaining and world-leading hydrogen market. The synergy between government vision and private sector dynamism is the engine of this transition, ensuring that the nation’s energy future is secure, sustainable, and carbon-neutral. As the policy continues to adapt and grow, it will stand as a testament to India’s leadership in the global clean energy transition, leaving a lasting legacy of innovation and environmental stewardship that inspires the world and ensures a resilient and prosperous future for all citizens, powered by the clean energy of tomorrow.

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The Strategic Importance of Localizing Electrolyser Technology

A self-reliant hydrogen economy is impossible without the domestic production of its core engine the electrolyser. Currently, the global supply of electrolysers is dominated by a few key players, and the resulting supply chain constraints can often delay large-scale energy projects. For India, localizing electrolyser manufacturing in India is a critical step in mitigating these external risks. By producing these devices domestically, the country can ensure a steady supply for its growing industrial demand while significantly reducing the logistics and import costs that currently inflate project budgets. Furthermore, localization allows for the development of technology that is specifically optimized for India’s unique climatic conditions and grid characteristics, ensuring higher operational efficiency and longer equipment life in the challenging local environment.

The Impact of Production Linked Incentives (PLI) on Growth

The primary driver for the expansion of electrolyser manufacturing in India has been the government’s targeted fiscal support through the Production Linked Incentive (PLI) scheme. By offering financial incentives based on the capacity and efficiency of the manufactured units, the government has successfully attracted both domestic industrial giants and global technology leaders to set up shop in India. This scheme provides the necessary “cushion” for manufacturers to scale their operations and invest in state-of-the-art facilities. The competition fostered by the PLI scheme is also driving technological maturation, as companies strive to produce the most efficient and cost-effective electrolysers to qualify for the highest incentive brackets. This policy-led approach has effectively jump-started a sector that would have otherwise taken years to gain momentum.

Diversification of Electrolysis Technologies: Alkaline, PEM, and SOEC

The growth of electrolyser manufacturing in India is not limited to a single technology but encompasses a diverse range of electrolysis methods. Alkaline electrolysers, known for their maturity and relatively lower cost, are currently the mainstay of the industry. However, there is a growing focus on Proton Exchange Membrane (PEM) technology, which offers better flexibility and integration with intermittent renewable energy sources. Additionally, high-temperature Solid Oxide Electrolyser Cell (SOEC) technology is being explored for its superior efficiency, particularly in industrial settings where waste heat can be utilized. By fostering a manufacturing base that supports all these technologies, India is ensuring that its industrial sector has access to the best tools for specific applications, whether it be large-scale ammonia production or decentralized hydrogen refuelling.

Building a Resilient Ancillary Supply Chain for Components

A truly successful sector for electrolyser manufacturing in India requires more than just final assembly plants it demands a deep and resilient ancillary supply chain. Each electrolyser unit is composed of thousands of precision-engineered parts, many of which require specialized materials like iridium, platinum, and high-performance polymers. Encouraging domestic small and medium enterprises (SMEs) to specialize in these components is vital for creating a sustainable ecosystem. This includes the manufacturing of power electronics, cooling systems, and water treatment modules. By integrating these suppliers into the larger manufacturing framework, India can minimize bottlenecks and ensure that the benefits of the hydrogen economy are distributed throughout the entire industrial landscape, creating a multiplier effect for job creation and economic growth.

Technological Innovation and R&D for Efficiency Gains

To maintain a competitive edge, electrolyser manufacturing in India must be underpinned by continuous research and development. The goal is to produce units that offer higher current densities, lower degradation rates, and reduced use of expensive rare earth metals. Collaborative efforts between Indian institutes of technology, national research labs, and private industry are focusing on developing new catalyst materials and improved membrane designs. By investing in indigenous R&D, India can move from being a technology adopter to a global innovator, setting new benchmarks for electrolyser performance. These innovations are crucial for driving down the levelized cost of hydrogen, making green fuel a viable alternative to traditional fossil fuels across a wider range of industrial applications.

Addressing Logistical and Infrastructure Bottlenecks

While the manufacturing capacity is scaling, the industry must also address the logistical challenges of moving these large, sensitive units from factories to project sites. The transport of multi-megawatt electrolyser modules requires specialized heavy-lift logistics and a robust road and port infrastructure. Furthermore, the installation of these units requires a skilled workforce capable of handling high-pressure gas systems and complex electrical integrations. By investing in vocational training and improving industrial logistics, India can ensure that the rapid growth in manufacturing capacity is matched by a smooth deployment phase. This holistic approach ensures that the electrolyser manufacturing in India contributes to a seamless and efficient transition toward a green energy future.

The Role of International Partnerships and Global Integration

The scaling of electrolyser manufacturing in India is a global endeavor that benefits from international collaboration. Joint ventures between Indian conglomerates and European or North American technology firms are playing a vital role in knowledge transfer and capacity building. These partnerships allow Indian firms to adopt proven manufacturing processes while tailoring them to local requirements. Conversely, global firms gain access to one of the world’s largest and most promising hydrogen markets. This integration into the global clean energy supply chain also opens doors for Indian-made electrolysers to be exported to international markets, further enhancing the economic viability of the domestic manufacturing sector and strengthening India’s position in the global trade of clean technologies.

Environmental and Social Responsibility in Manufacturing

As the sector for electrolyser manufacturing in India grows, it must also prioritize environmental and social governance (ESG). This includes adopting sustainable manufacturing practices that minimize waste and energy consumption during the production process. Furthermore, the industry must ensure fair labor practices and contribute to the social development of the regions where manufacturing hubs are located. By building a “green” supply chain for “green” hydrogen, India can ensure that the transition to clean energy is ethically sound and environmentally holistic. This commitment to sustainability is not just a moral imperative but a core business requirement for attracting international investment and meeting the stringent ESG standards of global customers.

Future Outlook: India as a Global Electrolyser Hub

The future of electrolyser manufacturing in India looks exceptionally promising, with the potential to transform the nation into a global hub for clean energy technology. As the domestic market reaches critical mass and production costs continue to fall, Indian-made electrolysers will become highly competitive in the international market. The synergy between government support, private sector innovation, and a skilled workforce is creating a virtuous cycle of growth. Ultimately, the success of this sector will be measured by its ability to drive large-scale decarbonization and energy independence for India. By building a manufacturing legacy rooted in quality and innovation, India is ensuring that its growth is not just rapid, but also sustainable, leading the world toward a brighter and cleaner tomorrow.

Strategic Partnerships and Global Integration

The journey to scaling electrolyser manufacturing in India is increasingly characterized by high-value international partnerships that facilitate the transfer of advanced technical knowledge. By collaborating with global leaders in electrolysis, Indian manufacturers are able to adopt best practices in plant design, quality control, and operational safety. These joint ventures are not just about importing technology they are about co-creating solutions that are resilient and tailored to the local environment. As the domestic market matures, these partnerships will evolve into global supply chain alliances, where Indian-made components are integrated into projects worldwide. This global connectivity ensures that India remains at the cutting edge of the energy transition, fostering a manufacturing sector that is both locally rooted and globally competitive, driving sustainable growth for decades to come.

Conclusion: A New Era of Industrial Leadership

The expansion of electrolyser manufacturing in India marks the beginning of a new era of industrial leadership, where the nation moves from a technology consumer to a primary creator of clean energy solutions. The synergy between government support, private sector innovation, and a skilled workforce is creating a virtuous cycle of growth that is essential for reaching net-zero goals. By building a manufacturing legacy based on quality, resilience, and innovation, India is ensuring that its economic growth is both rapid and sustainable. The lessons learned in this scaling phase will provide the blueprint for a future where clean energy technology is a cornerstone of national prosperity, inspiring the world with a model of industrial excellence that balances economic ambition with environmental stewardship for a brighter tomorrow.

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The agreement was inked by the Executive Director – Heavy Power Equipment Plant, Hyderabad, Mr Y. Srinivas Rao, and the General Manager & Head of New & Renewable Energy Business, Mr Sutripto De, on behalf of BHEL, and by the CEO of Hystar, Mr Fredrik Mowill, on behalf of Hystar AS Norway. The signing took place in the presence of the Chargé d’Affaires, Royal Norwegian Embassy in New Delhi, Mr Arvinn Eikeland Gadgil, as well as Ms Bani Varma, who is the Director of Industrial Systems & Products, BHEL, Mr S M Ramanathan, Director of Engineering, Research & Development, BHEL, along with certain other senior officials.

Interestingly, BHEL has already got into a strategic collaboration with Thyssenkrupp Nucera India Private Limited when it comes to alkaline electrolyser systems earlier in 2026. The tie-up with Hystar in terms of PEM electrolyser systems further makes the position of BHEL as one of the few Indian players who are indeed equipped to provide both alkaline and PEM electrolyser solutions in order to take care of the growing green hydrogen market of India. In addition to this, the collaboration is also going to strengthen the project execution capacity of BHEL, especially for green hydrogen projects across India.

For the unversed, BHEL is one of the leading engineering and manufacturing companies in India. It has decades of experience when it comes to power, oil & gas, transmission, renewables, transportation, defence, and aerospace sectors. The company has also been pretty active in building the industrial infrastructure of India and is now making utmost use of its engineering, manufacturing, and project implementation capacities so as to address the rising clean energy areas, which include green hydrogen.

This contract marks a major step in elevating contributions done by BHEL to the National Green Hydrogen Mission as well as the Make in India initiative by the government of India.

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Interestingly, the contract covers the proposed development in terms of an integrated facility that has a mix of solar power generation and green hydrogen production in South Korea as well as hydrogen-fired electricity output at only one site in Buan, which is situated in the North Jeolla Province.

The proposal goes on to outline a site that covers almost 10.1 square kilometers, with more plans of 1GW of onshore solar capacity as well as a 320MW water electrolysis installation along with a 100MW of hydrogen-only power generation.

Notably, KOEN and the Saemangeum Development Agency regard this as the first integrated demonstration of solar power, hydrogen production through electrolysis, and electricity generation from hydrogen, and that too at a commercial scale hence paving the way for green hydrogen production in South Korea.

A central trait of the project is a power-to-gas-to-power -P2G2P system. Solar-generated electricity is going to drive the electrolysis equipment, which apparently would generate green hydrogen specifically for storage.

This hydrogen, in a way, could then be converted back to electricity within a dedicated turbine in case additional power is needed or when the grid demand grows.

As per KOEN, getting all three stages together could help absorb extra renewable energy, enable dispatchable clean electricity manufacturing, and avoid any sort of curtailment in a scenario where generation goes beyond grid capacity.

The fact is that as of now, the development is still in its nascent stages, with the MoU marking an intention to proceed and not at all a final commitment of investment.

KOEN is in talks with many businesses when it comes to forming a special-purpose company and is looking to secure supply chains in terms of equipment required for the project.

The Saemangeum Development Agency is going to offer land, enable the streamlining of the permitting processes, and work to ensure regional acceptance.

KOEN, on the other hand, is going to focus on a detailed business model and looks to share economic advantages locally. A consultative group is getting together so as to advance the initiative.

Interestingly, Saemangeum is already home to many hydrogen-related developments, which include the likes of a functional commercial water-electrolysis plant and also planned investments by Hyundai Motor Group in the fields of hydrogen and technology within the region.

The newly proposed KOEN project that has 320MW of electrolysis, is going to be significantly bigger as compared to current facilities.

KOEN looks forward to connecting the project to the clean-hydrogen electricity market of South Korea, where the clean hydrogen power purchase when it comes to 2026 has been fixed at 500 GW-hours.

The electricity that is produced via stored hydrogen can very well be eligible when it comes to long-term supply contracts. KOEN regards them as a significant factor given the fact that there are additional costs and inefficiencies that are involved in terms of converting electricity to hydrogen and back again as compared to the grid supply that’s direct.

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A joint project in energy transition

Apparently, the hydrogen project was launched in 2023. It started its operations as a joint venture, with finance applications being shared with NBank, the EWE Foundation, and the Wesermarsch district, as well as the city of Nordenham. As per Dieter Sichau, INP Managing Director, “NBank finances only technical components, but a project like this also requires personnel resources.

Via the mix of technical assistance along with personnel support, this project went on to become a regional joint venture, the work of which goes beyond the Wesermarsch region across the entire JadeBay region.

A funding of 450,000 euros for the hydrogen plant

Interestingly, the hydrogen plant by itself represented an investment of almost €450,000, with the funding being provided as 40% by NBank along with 60% by the shareholders of JadeBay. Additionally, the EWE Foundation is offering €210,000 funding over three years when it comes to both personnel and development costs to make sure that educational assistance along with technical training is adequately provided.

Dr. Stefanie Abke stated that “We only fund personnel if it is part of a professional overall concept – and that is the case here.”

Technical outcomes along with new research collaborations

It is worth noting that the plant has already been operated successfully and that too many times. Simultaneously, there are more research projects that are already underway, such as the WENDE project of Karlsruhe Institute of Technology – KIT that involves prominent German research institutions like DLR and DECHEMA, and investigations into which water types are appropriate for future hydrogen production. Notably, the German Aerospace Center – DLR in Oldenburg has conducted purity measurements of the produced hydrogen recently. The outcomes are most likely to be published soon.

What lies ahead – Expansion of INP and hydrogen as a building tech

As Nordenham Innovation Center commissions new hydrogen plant, it is looking forward to having an extension to meet the demand, which has risen pretty sharply. The center has been functioning at full capacity for 3 years. Plans for the extension go on to include geothermal supply of energy, equipping one of the floors with hydrogen heating technology, and also putting in place a hybrid system with a switchover alternative to the regular heating technology. As per Sichau, “We want to demonstrate how modern building technology can work with hydrogen.”

Digital learning setup – Over 3,000 students every year

One of the major elements of the project is its educational work. The digital learning of ILP teaches students technical as well as scientific skills, be it in hydrogen and 3D printing to drone tech. It is well to be noted that in the first year itself, 660 students visited the center, in the second year, that number rose to 2,015, and in 2026, it has touched 3,020. The INP is very much known among schools even beyond the district as a prominent digital learning place.

The EWE Foundation has offered more support to the learning center with €45,000 when it comes to a qualified educator, who has since joined permanently. Stephan Siefken, the District Administrator, stressed that, “In today’s world, a good idea is not enough – it also needs funding. We are grateful for the strong partners at our side.”

Regional significance for energy shift

The INP is indeed growing into a significant location when it comes to hydrogen technology as well as technical education across Northwest Germany. The integration of research and application along with education has made the center a flagship when it comes to regional energy shift.

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