|
Gujarat is emerging as a key hub for renewable hydrogen development in India, backed by its large refinery and ammonia capacity, extensive renewable energy resources, ports and a state-level incentive framework, although most large-scale projects in the state remain at the feasibility stage, according to an S&P Global report.
The report, titled "Gujarat green hydrogen: Turning an ambition into reality", said Gujarat has several structural advantages that could support the long-term development of renewable hydrogen capacity. "India is emerging as an important player" in the development and future expansion of the renewable hydrogen industry, S&P Global said, noting that Gujarat is particularly well positioned because of its existing industrial and energy infrastructure. According to the report, around 40 per cent of India's refinery capacity and about 30 per cent of its ammonia capacity are located in Gujarat. The state also has nearly 50 gigawatts of combined solar and wind capacity, while at least 40 per cent of India's maritime trade enters through ports located in Gujarat. These factors provide Gujarat with both potential domestic demand and infrastructure for hydrogen production, transportation and exports. The report noted that Gujarat's Energy and Petrochemicals Department finalised its hydrogen strategy in December 2025, setting production targets and providing financial support for early projects. "The first 500 megawatts of electrolyzer capacity" commissioned in Gujarat will receive a range of financial incentives, the report said. The policy includes capital subsidies for eligible electrolyzer components, battery storage, oxygen collection and water desalination facilities. Gujarat's policy also provides support for hydrogen demand, including subsidies for hydrogen refuelling stations, hydrogen-powered buses and heavy-duty vehicles. It also provides reimbursement for renewable hydrogen used in industrial applications and hydrogen blended into the natural gas network. S&P Global said Gujarat has set a renewable hydrogen production ambition of 3 million metric tonnes per year by 2035, the highest target among the Indian states covered in its comparison. However, the report cautioned that the target remains "highly ambitious". Despite the policy support, most capacity in Gujarat remains at an early stage of development. While the state has the highest number of projects in advanced stages among Indian states, Andhra Pradesh and Odisha have larger capacities in advanced-stage projects. The report said large-scale projects in Gujarat are still in feasibility stages, although they could progress following recent support under India's Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. At the national level, the government's National Green Hydrogen Mission targets production of 5 million metric tonnes of renewable hydrogen annually by 2030, while the SIGHT programme has received an initial allocation of Rs 170 billion for projects across the hydrogen value chain. S&P Global also highlighted India's growing role in international hydrogen trade. Indian developers accounted for 40 per cent of the volume of trade-related renewable hydrogen and derivative offtake agreements signed in 2024 and 2025, with that share rising to 80 per cent for year-to-date 2026 deals. For Gujarat, the report said its west-coast location could provide an advantage in supplying European markets, particularly through ammonia exports. However, competition from the Middle East and China means state and federal support will remain important for maintaining export competitiveness. The report noted that Gujarat's combination of domestic industrial demand, renewable energy resources, ports, transmission infrastructure and policy support could help developers establish renewable hydrogen projects and capture a share of growing international demand. (ANI)
|
