Overview

The urgency of achieving net-zero emissions has positioned Green Hydrogen as a critical component of the global energy transition. Governments and industries worldwide are investing heavily in the production, storage, and utilization of green hydrogen, particularly for decarbonizing hard-to-abate sectors.

As of 2025, the green hydrogen market is expanding rapidly, with projects announced in regions like Europe, Australia, the Middle East, and Asia. The International Energy Agency (IEA) projects hydrogen demand could reach 500 million tons annually by 2050, with green hydrogen dominating the scene.

Governments across the globe are driving adoption through subsidies, tax incentives, and national hydrogen strategies. Examples include the EU’s Hydrogen Strategy, India’s National Hydrogen Mission, and Australia’s H2Hub programs.

While Europe is leading with ambitious targets of 40 GW of electrolyzer capacity by 2030, China and India are scaling production, with India aiming for 5 million tons annually by 2030. Middle East & Africa are leveraging abundant solar resources for export-oriented green hydrogen projects like Saudi Arabia’s NEOM project.

While costs are declining (electrolyzer costs dropped ~20% from 2020-2025), green hydrogen remains expensive compared to grey hydrogen. Scaling renewable energy and improving electrolyzer eficiency are key to cost parity

Green hydrogen holds immense potential for India’s transition to a low-carbon economy. As India targets net- zero emissions by 2070, green hydrogen is emerging as a key enabler, especially for decarbonizing hard-to-abate sectors like steel, refining, fertilizers, and heavy transport.

In 2023, India launched its National Hydrogen Mission, with an outlay of Rs. 19,744 crore, the mission aims to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030 and add ~125 GW of renewable energy capacity.

However, high production costs, need for technology development, infrastructure gaps, and water availability issues remain hurdles that India must overcome through innovation and partnerships.

Despite this rapid growth, the landscape remains fragmented, with information dispersed across various academic papers, government reports, and private sector announcements