Green hydrogen explained: How it is produced, where it is used and India's mission
India's push towards clean energy received a major boost recently with the launch of its first hydrogen-powered train, bringing green hydrogen technology into the spotlight. The milestone is part of the country's broader effort to reduce dependence on fossil fuels and achieve net-zero emissions by 2070. Alongside electric vehicles and renewable energy, green hydrogen is emerging as one of the key pillars of India's clean energy transition.

Globally, countries are investing heavily in hydrogen as a future fuel for sectors that are difficult to decarbonise, such as heavy industries, long-distance transport, shipping and aviation. India, too, has launched the National Green Hydrogen Mission to position itself as a global hub for the production, use and export of green hydrogen.
In this context, let us understand what green hydrogen is, how it is produced, how hydrogen fuel cells generate electricity without combustion, and why the technology is considered vital for India's energy future.
The concept in simple terms
Hydrogen is the lightest and most abundant element in the universe, but it is rarely found in its pure form on Earth. It usually exists as part of compounds such as water (H2O) or hydrocarbons like natural gas. Therefore, hydrogen must first be extracted before it can be used as a fuel.
Hydrogen is often described as an energy carrier, not an energy source. Like electricity, it stores and transports energy produced elsewhere.
Depending on how it is produced, hydrogen is classified into different categories:
• Grey hydrogen is produced from natural gas through steam methane reforming. It is currently the most widely used form but releases significant amounts of carbon dioxide.
• Blue hydrogen is also produced from natural gas, but the carbon dioxide generated during production is captured and stored using Carbon Capture, Utilisation and Storage (CCUS) technologies.
• Green hydrogen is produced by splitting water into hydrogen and oxygen using electricity generated from renewable sources such as solar or wind energy. Since no fossil fuels are used and virtually no carbon dioxide is emitted during production, it is regarded as the cleanest form of hydrogen.
Because green hydrogen can be stored, transported and used across multiple sectors, it is expected to play a crucial role in achieving global climate goals.
How is green hydrogen produced?
The most common method of producing green hydrogen is electrolysis .
In this process, electricity is passed through water using a device called an electrolyser. The electric current breaks water molecules into hydrogen and oxygen gases.
When the electricity comes entirely from renewable sources such as solar, wind or hydropower, the resulting hydrogen is known as green hydrogen.
The oxygen produced during electrolysis can also be captured for industrial or medical use, improving the overall efficiency of the process.
Although electrolysis has been known for decades, falling renewable energy costs and improvements in electrolyser technology have made green hydrogen increasingly viable as a large-scale clean fuel.
How they generate electricity without combustion
Unlike petrol, diesel or coal, hydrogen does not need to be burned to produce electricity.
Most hydrogen-powered vehicles and trains use hydrogen fuel cells, which convert the chemical energy of hydrogen directly into electrical energy through an electrochemical reaction.
Inside a fuel cell, hydrogen is supplied to the anode while oxygen from the surrounding air enters through the cathode. A catalyst separates hydrogen into protons and electrons. The electrons travel through an external circuit, generating electricity to power the motor, while the protons combine with oxygen to produce water.
The only direct by-products of this process are water and heat, making fuel cells virtually free of tailpipe emissions.
Compared with conventional batteries, hydrogen fuel cells can be refuelled more quickly and generally provide a longer operating range, making them particularly suitable for heavy vehicles, long-distance trains, buses and freight transport.
Applications of green hydrogen
Green hydrogen is expected to transform sectors where direct electrification remains difficult.
In transportation, it can power trains, buses, trucks, ships and potentially aircraft. In industry, it can replace coal and natural gas in steel manufacturing, petroleum refining, fertiliser production and chemical industries, significantly reducing carbon emissions.
The power sector can also use hydrogen for long-duration energy storage, helping balance electricity generated from intermittent renewable sources like solar and wind.
In addition, hydrogen is increasingly being viewed as a future export commodity, with countries possessing abundant renewable energy resources aiming to become major suppliers to energy-importing nations.
India's National Green Hydrogen Mission
Recognising hydrogen's strategic importance, the Union Cabinet approved the National Green Hydrogen Mission on January 4, 2023, with an initial financial outlay of Rs 19,744 crore.
The mission seeks to make India a global hub for the production, utilisation and export of green hydrogen and its derivatives.
Its major objectives include:
• Production: Build a green hydrogen production capacity of at least 5 Million Metric Tonnes (MMT) per year.
• Energy: Add about 125 Gigawatts (GW) of renewable energy capacity to the country.
• Investment: Attract total investments worth over Rs 8 lakh crore ($100 billion USD).
• Jobs: Create more than 6 lakh (600,000) clean energy jobs.
• Emissions: Reduce annual greenhouse gas emissions by nearly 50 MMT.
• Savings: Save over Rs 1 lakh crore in fossil fuel imports.
The mission is being implemented by the Ministry of New and Renewable Energy ( MNRE ) through initiatives such as the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, support for pilot projects, research and development, skill development and the creation of hydrogen hubs.
Why does green hydrogen matter for India?
India is the world's third-largest energy consumer and imports a significant share of its crude oil and natural gas requirements. This dependence exposes the economy to global price fluctuations and supply disruptions.
Green hydrogen offers an opportunity to improve energy security while supporting India's climate commitments under the Paris Agreement. It can help decarbonise sectors that cannot easily shift to battery-electric technologies, particularly steel, fertilisers, refineries and heavy transport.
The technology is also expected to create new manufacturing opportunities in electrolysers, fuel cells and renewable energy infrastructure, strengthening India's position in the emerging global clean energy economy.
However, several challenges remain. Green hydrogen is still more expensive than conventional hydrogen, electrolyser manufacturing capacity needs to expand, transporting and storing hydrogen safely requires specialised infrastructure, and large quantities of renewable electricity and water are needed for production.
Even so, experts believe that technological advancements and economies of scale are likely to reduce costs over the coming years.
Prelims Fact Box
Mains Practice Question
"Green hydrogen is expected to play a transformative role in India's clean energy transition." Discuss its production process, applications, challenges and the significance of the National Green Hydrogen Mission in achieving India's climate and energy security goals.
Five key terms to remember
• Green Hydrogen: Hydrogen produced by splitting water using renewable electricity.
• Electrolysis: The process of using electricity to separate water into hydrogen and oxygen.
• Hydrogen Fuel Cell: A device that converts hydrogen into electricity through an electrochemical reaction without combustion.
• National Green Hydrogen Mission:Government initiative aimed at making India a global hub for green hydrogen production and exports.
• Energy Carrier: A substance, such as hydrogen, that stores and transports energy produced from another source.
MCQs with Answers
1. Green hydrogen is produced using:
(a) Coal gasification
(b) Electrolysis powered by renewable energy
(c) Petroleum refining
(d) Nuclear fission
Answer: (b)
2. Which ministry is the nodal agency for the National Green Hydrogen Mission?
(a) Ministry of Petroleum and Natural Gas
(b) Ministry of Power
(c) Ministry of New and Renewable Energy
(d) Ministry of Heavy Industries
Answer: (c)
3. The primary by-product of electricity generation in a hydrogen fuel cell is:
(a) Carbon dioxide
(b) Sulphur dioxide
(c) Water
(d) Methane
Answer: (c)
4. Which type of hydrogen involves carbon capture during production?
(a) Green hydrogen
(b) Blue hydrogen
(c) White hydrogen
(d) Yellow hydrogen
Answer: (b)
5. The National Green Hydrogen Mission aims to produce at least how much green hydrogen annually by 2030?
(a) 2 MMT
(b) 3 MMT
(c) 5 MMT
(d) 10 MMT
Answer: (c)
FAQs
Q1. Why is hydrogen called an energy carrier rather than an energy source?
Hydrogen does not occur freely in large quantities and must first be produced using another source of energy. It stores and delivers energy rather than generating it naturally.
Q2. Is green hydrogen completely pollution-free?
Green hydrogen production itself is virtually carbon-free when renewable electricity is used. However, its overall environmental impact also depends on factors such as water use, transportation and infrastructure.
Globally, countries are investing heavily in hydrogen as a future fuel for sectors that are difficult to decarbonise, such as heavy industries, long-distance transport, shipping and aviation. India, too, has launched the National Green Hydrogen Mission to position itself as a global hub for the production, use and export of green hydrogen.
In this context, let us understand what green hydrogen is, how it is produced, how hydrogen fuel cells generate electricity without combustion, and why the technology is considered vital for India's energy future.
The concept in simple terms
Hydrogen is the lightest and most abundant element in the universe, but it is rarely found in its pure form on Earth. It usually exists as part of compounds such as water (H2O) or hydrocarbons like natural gas. Therefore, hydrogen must first be extracted before it can be used as a fuel.
Hydrogen is often described as an energy carrier, not an energy source. Like electricity, it stores and transports energy produced elsewhere.
Depending on how it is produced, hydrogen is classified into different categories:
• Grey hydrogen is produced from natural gas through steam methane reforming. It is currently the most widely used form but releases significant amounts of carbon dioxide.
• Blue hydrogen is also produced from natural gas, but the carbon dioxide generated during production is captured and stored using Carbon Capture, Utilisation and Storage (CCUS) technologies.
Because green hydrogen can be stored, transported and used across multiple sectors, it is expected to play a crucial role in achieving global climate goals.
How is green hydrogen produced?
The most common method of producing green hydrogen is electrolysis .
In this process, electricity is passed through water using a device called an electrolyser. The electric current breaks water molecules into hydrogen and oxygen gases.
When the electricity comes entirely from renewable sources such as solar, wind or hydropower, the resulting hydrogen is known as green hydrogen.
The oxygen produced during electrolysis can also be captured for industrial or medical use, improving the overall efficiency of the process.
Although electrolysis has been known for decades, falling renewable energy costs and improvements in electrolyser technology have made green hydrogen increasingly viable as a large-scale clean fuel.
How they generate electricity without combustion
Most hydrogen-powered vehicles and trains use hydrogen fuel cells, which convert the chemical energy of hydrogen directly into electrical energy through an electrochemical reaction.
Inside a fuel cell, hydrogen is supplied to the anode while oxygen from the surrounding air enters through the cathode. A catalyst separates hydrogen into protons and electrons. The electrons travel through an external circuit, generating electricity to power the motor, while the protons combine with oxygen to produce water.
The only direct by-products of this process are water and heat, making fuel cells virtually free of tailpipe emissions.
Compared with conventional batteries, hydrogen fuel cells can be refuelled more quickly and generally provide a longer operating range, making them particularly suitable for heavy vehicles, long-distance trains, buses and freight transport.
Applications of green hydrogen
Green hydrogen is expected to transform sectors where direct electrification remains difficult.
In transportation, it can power trains, buses, trucks, ships and potentially aircraft. In industry, it can replace coal and natural gas in steel manufacturing, petroleum refining, fertiliser production and chemical industries, significantly reducing carbon emissions.
The power sector can also use hydrogen for long-duration energy storage, helping balance electricity generated from intermittent renewable sources like solar and wind.
In addition, hydrogen is increasingly being viewed as a future export commodity, with countries possessing abundant renewable energy resources aiming to become major suppliers to energy-importing nations.
India's National Green Hydrogen Mission
Recognising hydrogen's strategic importance, the Union Cabinet approved the National Green Hydrogen Mission on January 4, 2023, with an initial financial outlay of Rs 19,744 crore.
The mission seeks to make India a global hub for the production, utilisation and export of green hydrogen and its derivatives.
Its major objectives include:
• Energy: Add about 125 Gigawatts (GW) of renewable energy capacity to the country.
• Investment: Attract total investments worth over Rs 8 lakh crore ($100 billion USD).
• Jobs: Create more than 6 lakh (600,000) clean energy jobs.
• Emissions: Reduce annual greenhouse gas emissions by nearly 50 MMT.
The mission is being implemented by the Ministry of New and Renewable Energy ( MNRE ) through initiatives such as the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, support for pilot projects, research and development, skill development and the creation of hydrogen hubs.
Why does green hydrogen matter for India?
India is the world's third-largest energy consumer and imports a significant share of its crude oil and natural gas requirements. This dependence exposes the economy to global price fluctuations and supply disruptions.
Green hydrogen offers an opportunity to improve energy security while supporting India's climate commitments under the Paris Agreement. It can help decarbonise sectors that cannot easily shift to battery-electric technologies, particularly steel, fertilisers, refineries and heavy transport.
The technology is also expected to create new manufacturing opportunities in electrolysers, fuel cells and renewable energy infrastructure, strengthening India's position in the emerging global clean energy economy.
However, several challenges remain. Green hydrogen is still more expensive than conventional hydrogen, electrolyser manufacturing capacity needs to expand, transporting and storing hydrogen safely requires specialised infrastructure, and large quantities of renewable electricity and water are needed for production.
Even so, experts believe that technological advancements and economies of scale are likely to reduce costs over the coming years.
Prelims Fact Box
Mains Practice Question
"Green hydrogen is expected to play a transformative role in India's clean energy transition." Discuss its production process, applications, challenges and the significance of the National Green Hydrogen Mission in achieving India's climate and energy security goals.
Five key terms to remember
• Green Hydrogen: Hydrogen produced by splitting water using renewable electricity.
• Electrolysis: The process of using electricity to separate water into hydrogen and oxygen.
• Hydrogen Fuel Cell: A device that converts hydrogen into electricity through an electrochemical reaction without combustion.
• National Green Hydrogen Mission:
• Energy Carrier: A substance, such as hydrogen, that stores and transports energy produced from another source.
MCQs with Answers
1. Green hydrogen is produced using:
(a) Coal gasification
(b) Electrolysis powered by renewable energy
(c) Petroleum refining
Answer: (b)
2. Which ministry is the nodal agency for the National Green Hydrogen Mission?
(a) Ministry of Petroleum and Natural Gas
(b) Ministry of Power
(c) Ministry of New and Renewable Energy
(d) Ministry of Heavy Industries
Answer: (c)
3. The primary by-product of electricity generation in a hydrogen fuel cell is:
(a) Carbon dioxide
(c) Water
(d) Methane
Answer: (c)
4. Which type of hydrogen involves carbon capture during production?
(a) Green hydrogen
(b) Blue hydrogen
(c) White hydrogen
(d) Yellow hydrogen
Answer: (b)
5. The National Green Hydrogen Mission aims to produce at least how much green hydrogen annually by 2030?
(a) 2 MMT
(b) 3 MMT
(c) 5 MMT
(d) 10 MMT
Answer: (c)
FAQs
Q1. Why is hydrogen called an energy carrier rather than an energy source?
Hydrogen does not occur freely in large quantities and must first be produced using another source of energy. It stores and delivers energy rather than generating it naturally.
Q2. Is green hydrogen completely pollution-free?
Green hydrogen production itself is virtually carbon-free when renewable electricity is used. However, its overall environmental impact also depends on factors such as water use, transportation and infrastructure.
Next Story