Govt, industry bullish on green hydrogen, but export demand falters amid global headwinds

Stakeholders in India’s nascent green hydrogen sector remain bullish that the alternate fuel “is going to be big”, but weak export demand — driven by geopolitical instability and policy reversals in key markets — is slowing down the pace of expansion.At an industry event on Thursday, Ministry of New and Renewable Energy (MNRE) Secretary, Santosh Kumar Sarangi, said, “One key factor, from an entrepreneur's perspective, is market visibility. That market — due to a variety of reasons such as geopolitical tensions and policy backtracking by some governments, including the US where the IRA (Inflation Reduction Act) is stalled — has created some skepticism about whether this transition will move forward.”

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The IRA, widely seen as the most significant net-zero carbon emissions intervention in the US, is under threat from President Donald Trump's proposed “Big Beautiful Bill”, currently up for Senate consideration. It includes production tax credits meant to incentivize the deployment of low-carbon hydrogen. “But | believe green hydrogen has a strong future and is going to be big. India will play an instrumental role in this transition, alongside many other countries devoted to this,” he added. The MNRE Secretary said India is in discussions with Europe, specifically the ports of Rotterdam and Antwerp, to ensure that green hydrogen and its derivatives exported to these countries are transported smoothly. Reduction of import duties on India’s green hydrogen exports is also a part of ongoing free trade agreement (FTA) negotiations with Europe, he said.ReNew, a major renewables player in India, is developing a green ammonia project in Odisha. However, weak export demand remains a major hurdle for offtake.“At this point, export markets are very weak, with little movement globally. That said, there is some progress on the shipping front, with the International Maritime Organization urging shipping companies to start using some degree of clean fuels, about 5 per cent. Sustainable aviation fuel may also take off soon. So there is hope for the future — but for now, progress remains slow,” its chief executive officer Sumant Sinha told The Indian Express.On demand from the EU, Sinha said, “The issue is that the EU and its compa