The Indian government is once again being urged to introduce compulsory measures to promote the use of green hydrogen in key industries, as part of efforts to secure India’s position as a major producer of the clean fuel, reports H2-view.
The Confederation of Indian Industry (CII) has recommended public procurement rules that would require green hydrogen-based products to be used in government infrastructure projects. The industry body said such steps would help create steady demand and provide confidence to investors.
CII suggested that making 10–15 per cent of materials such as steel, cement and ammonia used in public projects come from green hydrogen-based production could help bring down costs and reduce investment risks by ensuring consistent demand.
However, it pointed out that green hydrogen remains more expensive than fossil-based alternatives. To address this, CII said mandates should be supported by incentives, including the allocation of carbon credits for avoided emissions.
The industry body also highlighted the importance of developing green hydrogen industrial clusters. It said shared infrastructure and combined demand within such clusters would help speed up adoption and lower costs.
According to CII, government support in providing land, common facilities and links to renewable energy would play a key role in building these clusters.
On exports, CII said India has the potential to supply a meaningful share of global demand. It estimated that capturing 5–7.5 per cent of projected global import demand could translate into exports of up to 1.1 million tonnes of green hydrogen.
The group called on the government to grant green hydrogen and its derivatives a special export classification so they can qualify for benefits under existing export promotion schemes. It also said bilateral trade agreements could help generate strong demand, pointing to countries such as Germany, the Netherlands, Japan and South Korea as potential markets.
India has increased support for green hydrogen through domestic production incentives, green ammonia supply contracts with state-run fertiliser companies and support for local manufacturing of related technologies.
Despite these efforts, many projects have progressed slowly due to uncertainty over long-term demand and delays in final investment decisions.
CII’s recommendations add to growing calls from industry and policy groups for the government to introduce binding measures to help India achieve its target of producing five million tonnes of green hydrogen by 2030.
