configurations. This makes refining one of the lowest-risk entry points for green hydrogen deployment. From an energy-transition perspective, refining offers immediate scale and operational learning. Hydrogen substitution can be implemented through phased integration, including on-site electrolysis, off-site hydrogen hubs, or blended supply models. This flexibility allows refiners to align hydrogen transition pathways with asset life cycles, capital planning horizons, and evolving regulatory frameworks. Beyond refining: fertilisers, steel, and transport While refining provides early scale, India’s green hydrogen opportunity extends across multiple hard-to-abate sectors. In fertilisers, green hydrogen enables the production of low-emissions ammonia, reducing the carbon footprint of one of India’s most strategically important industries. Given the scale of domestic fertiliser demand, even modest penetration of green ammonia can have material emissions impacts. In steelmaking, hydrogen-based direct reduced iron (DRI) offers a pathway to deep decarbonisation compared with conventional blast furnace routes. Although capital- intensive, India’s planned capacity additions create an opportunity to integrate hydrogen- based technologies over time, particularly for new plants. Heavy transport, shipping, and aviation represent longer-term opportunities, where hydrogen and hydrogen-derived fuels complement battery-electric solutions rather than compete with them. Strategic Interventions for Green Hydrogen Transition (SIGHT) The SIGHT scheme serves as the primary implementation mechanism under the National Green Hydrogen Mission. SIGHT is specifically structured to bridge the initial cost gap between green hydrogen and fossil-based hydrogen through targeted financial incentives, thereby accelerating early adoption and improving project bankability. SIGHT operates through two complementary instruments. The first supports domestic electrolyser manufacturing through production-
linked incentives, enabling rapid capacity build-up, cost reduction through localisation, and supply chain resilience. The second provides incentives for green hydrogen production during the early deployment phase, when costs remain higher than conventional alternatives. For the refining sector, SIGHT is particularly significant because refinery hydrogen demand is continuous, predictable, and large-scale. This demand profile enables high electrolyser utilisation, improves project economics, and provides long-term offtake certainty. As a result, refineries are well-positioned to act as anchor customers for SIGHT-supported projects, facilitating scale-up while reducing National Green Hydrogen Mission (NGHM): policy framework NGHM is explicitly designed to prioritise sectors with existing, large-scale hydrogen consumption, with petroleum refining identified as a key anchor demand segment. India’s refineries consume hydrogen continuously for hydrotreating, hydrocracking, and desulphurisation, making them ideally suited for early green hydrogen substitution without disruption to core process configurations. The NGHM targets at least five million tonnes per annum of green hydrogen production by 2030, with the potential to scale further as decarbonisation risk for both hydrogen producers and industrial consumers. export markets for hydrogen derivatives mature. For refineries, this translates into a structured pathway to progressively replace grey hydrogen derived from natural gas with green hydrogen, directly reducing Scope 1 and 2 emissions while preserving throughput and fuel quality compliance. A further strategic pillar of NGHM is the development of port-linked green hydrogen and derivative hubs. Co-location of renewable generation, electrolysers, ammonia synthesis units, and export infrastructure creates significant system-level efficiencies. Coastal refinery complexes are well-positioned to integrate domestic hydrogen use with export-oriented green ammonia and methanol value chains, strengthening asset utilisation and long-term competitiveness. India’s strategic intent in this domain
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