electrolysis of water using electricity generated from renewable sources such as solar and wind. When renewable electricity is used, lifecycle emissions from hydrogen production are close to zero. From an energy-transition perspective, hydrogen
Grey Hydrogen
Blue Hydrogen
Turquoise Hydrogen*
Green Hydrogen
Colour
SMR or gasi cation
SMR or gasi cation with carbon capture (85–95%)
Pyrolysis
Electrolysis
Process
Methane or coal
Methane
Renewable electricity
Methane or coal
Source
Note: SMR = steam methane reforming. * Turquoise hydrogen is an emerging decarbonisation option.
Figure 2 Selected shades of hydrogen
India’s starting advantage in the hydrogen transition India occupies a distinctive position in this evolving hydrogen landscape. Unlike many economies that must first stimulate hydrogen demand, India already consumes more than six million tonnes of hydrogen annually, primarily in refining and fertiliser production. This existing demand base provides an immediate platform for scale, operational learning, and cost reduction. Even partial substitution of this demand with green hydrogen can deliver “ For India, the convergence of low renewable tariffs and improving electrolyser economics positions green hydrogen as a competitive industrial input earlier than in many other regions ” meaningful emissions reduction while anchoring a domestic hydrogen ecosystem with long-term industrial relevance. In parallel, India has emerged as one of the world’s most competitive renewable energy markets. Rapid deployment of large-scale solar and wind capacity over the past decade has driven tariffs to internationally low levels. Increasing adoption of hybrid solar-wind projects and grid-scale energy storage is improving capacity utilisation, which is critical for electrolyser economics. These structural advantages allow India to approach green hydrogen not as a niche technology, but as a mainstream industrial transition pathway.
functions as a sector-coupling vector, linking power systems with refining, chemicals, steel, and transport, while also serving as a long- duration energy carrier that complements variable renewable generation. Hydrogen production pathways vary widely in both emissions intensity and maturity. Grey hydrogen, produced from natural gas, remains the dominant pathway globally, while blue hydrogen combines fossil-based production with carbon capture. Green hydrogen, although currently a small share of total production, represents the only pathway compatible with deep decarbonisation in a net-zero energy system. Cost economics and competitiveness The economics of green hydrogen are dominated by three interlinked variables: the cost of renewable electricity, electrolyser capital costs, and utilisation rates. India’s advantage lies primarily in the first of these, with renewable electricity costs among the lowest globally due to favourable resource availability and competitive market structures. International experience indicates that electrolyser costs decline rapidly with scale, standardisation, and manufacturing localisation. Learning curves similar to those observed in solar photovoltaics and wind power are now beginning to emerge in electrolyser manufacturing. As utilisation improves and capital costs decline, green hydrogen is expected to approach cost parity with fossil-based hydrogen in favourable locations during the late 2020s. For India, the convergence of low renewable tariffs and improving electrolyser economics positions green hydrogen as a competitive industrial input earlier than in many other regions.
Green hydrogen production pathways Green hydrogen is produced through the
Refining India
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