India's Green Hydrogen Mission target to be delayed by two years: MNRE Secretary

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India's target to produce 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030 is likely to slip into 2032 due to policy uncertainties in Europe and the International Maritime Organization's (IMO) decision to postpone its net-zero framework by a year, Secretary, Ministry of New and Renewable Energy (MNRE), Santosh Kumar Sarangi said on November 11.

Launched in January 2023, the National Green Hydrogen Mission (NGHM) aims to make India a global hub for green hydrogen production and export, with a target of producing 5 MMTPA of green hydrogen by 2030.

"We expect India to achieve 3 MMT annual green hydrogen production capacity by 2030 and 5 MMTPA by 2032. Some companies that are more export dependent are likely to recalibrate due certain policy uncertainties globally. But at the same time, there are companies like Greenko, ACME, and Sembcorp that are actively scouting for partnerships and we expect these companies will soon execute their final investment decisions (FIDs) and start projects soon," Sarangi told reporters on the sidelines of the International Conference on Green Hydrogen in India, 2025.

He further clarified that the incentives offered under NGHM for manufacturing electrolysers and production of green hydrogen and green ammonia will continue as is. However, the waiver of interstate transmission system (ISTS) charges which green hydrogen projects are currently offered has a validity until 2030. "Any decision on whether to continue the ISTS charges waiver for green hydrogen projects beyond 2030 will be taken in the coming years and not now," the secretary said.

EU's 'Red III Mandate'

One of the key reasons for the sluggish pace of India's NGHM has been delays in the implementation of the 'Renewable Energy Directive (RED) III mandate' in the European Union (EU), Sarangi said.

The 'RED III mandate' refers to the EU's amended directive, which sets a legally binding target of achieving 42.5 percent renewable energy in the EU's overall energy consumption by 2030. Under RED III, the EU set binding targets for green hydrogen use in industry and transport — 42 percent of industrial hydrogen demand by 2030 and 1 percent of transport fuels by 2030.

"The problem is that while EU as a whole has issued the RED III mandate, the individual member countries are yet to implement the same. Hence, India's green hydrogen and green ammonia producers are finding it difficult to seal deals in Europe as of now," the Secretary said.

The delay in implementing the RED III mandate in the EU has a ripple effect on India’s NGHM because Europe is expected to be one of the biggest potential markets for India’s green hydrogen and its derivatives (such as green ammonia).

IMO's green fuel mandate deferral

The International Maritime Organization (IMO)’s decision to defer implementation of stricter green fuel mandates by at least a year also impacts India’s NGHM as it quashes near-term export prospects for green hydrogen derivatives such as green ammonia and green methanol, which are seen as key future marine fuels.

The shipping sector is one of the largest potential global consumers of green hydrogen-based fuels. India, with its extensive coastline and emerging hydrogen hubs near ports like Paradip, Kandla, and Tuticorin, had been positioning itself as a supplier of green marine fuels under the NGHM framework.

However, the IMO’s deferral could slow investment momentum and delay final investment decisions (FIDs) in India’s export-oriented green hydrogen and ammonia projects, even as domestic offtake by refineries and fertiliser plants continues to drive initial deployment under the Mission.