Green hydrogen: India’s 2026 push for robust energy security

The ongoing geopolitical volatility is reaffirming how, globally, lives are intertwined with our need for energy. Hostility around oilfields thousands of kilometres away has doused the hearths of countless homes in India. World leaders are increasingly doubling down on the need for uncurtailed availability of respective renewable and enduring energy sources to meet their energy targets.

It is now a pressing priority to invest and innovate in clean energy in order to negate the impact of supply chain disruptions.

Amid deliberations over the most adaptable and scalable renewable energy, green hydrogen’s potential as a tool to reduce the carbon footprint is increasingly gaining ground.

Unlike the extraction-based crude oil industry, hydrogen is conversion-based, making it a geographic leveller from an access perspective, especially in hard-to-abate sectors like steel, fertiliser manufacturing and petroleum refineries. By 2050, it could meet 12% of global energy consumption.

Crucially, for India, it bolsters energy security by reducing import dependence and mitigating the price vulnerability inherent in traditional hydrocarbon markets.

India’s 2026 green hydrogen push

India is steadily progressing towards its target of 5 million metric tonnes of green hydrogen by 2030, with recent government reports indicating that India’s green hydrogen capacity stood at 8,000 tonnes per annum in February 2026.

Proclaimed the “year of execution”, 2026 is witnessing global projects move from roadmaps to contracting and construction. Significant commercial signals through several large-scale pilots are emerging, bringing India’s green hydrogen pipeline to nearly 40,000 tonnes per annum.

Undoubtedly, India is amplifying its green hydrogen efforts, championing it as the fuel of the future. However, the liquidity gap and infrastructural nascency impedes the speed of adoption. Consequently, India continues to meet 85% of its energy needs through imported crude oil.

The path to green hydrogen adaptation faces imposing roadblocks. The primary barrier is economic and electrical efficiency.

Producing one kilogram of hydrogen requires 50-55 units of electricity while the reconversion process entails inevitable energy loss. India’s grid remains at a developmental stage, where an unprecedented surge in consumption may lead to curtailment and congestion. There are also the mammoth storage and transportation costs to reckon with.

Intermittency remains an infrastructural hurdle, as industrial processes require 24/7 supply that renewables cannot provide without expensive storage solutions like pumped hydro or battery systems. Added to that, shortages of raw materials for electrolysers and high capex create price fluctuations.

Another key challenge is accelerating a sustained demand for new energy sources like green hydrogen, and not a knee-jerk response to a particular crisis.

Robust policies propel India’s green hydrogen

Steering India’s green hydrogen-centric energy transition requires robust policies and regulations, backed by adequate investment and infrastructural preparedness. Currently, India’s National Green Hydrogen Mission and the Strategic Interventions for Green Hydrogen Transition Programme provide vital financial incentives for green hydrogen and its derivatives’ production.

Several international mandates like the EU’s RFNBO (Renewable Fuels of Non–Biological Origin) and CBAM (Carbon Border Adjustment Mechanism) are acting as regulatory catalysts, making decarbonisation essential for Indian exporters.

Much is being done but much remains to be done.

Offtake certainty, standards and sector focus

For these policies to succeed, the government must facilitate long-term offtake contracts to align with the lifespan of heavy infrastructure. Establishing a transparent internationally aligned system for certification and price discovery will be critical.

Regulations propelling budgetary prioritisation of sectors where green hydrogen is the only viable alternative to fossil fuels alongside derisking investments through tax relief and other subsidies including land, water, transmission, etc., are imperative.

While it does not seem likely that green hydrogen will bulwark India from the ongoing oil crisis, its role in decarbonising hard-to-abate sectors and building fuel efficiency is indispensable for national resilience in the coming years. India must look beyond a mission statement and enable legislative and regulatory pivots in India’s energy consumption and production patterns.

Anjan Dasgupta and Roochi Loona are partners at DSK Legal. Yashaswini Basu, an associate, contributed to the column