India Hits Record Low Price for Green Hydrogen at $3.08/kg

The world's most populous nation just made clean energy cheaper than ever before.

India achieved its lowest-ever bid for green hydrogen supply at 279 rupees ($3.08) per kilogram, Renewable Energy Minister Pralhad Joshi announced this week. The winning bidder will supply 10,000 tons annually to Numaligarh Refinery Ltd., a state-run facility in northeastern Assam.

Nine companies competed for the contract, according to the refinery's managing director Bhaskar Jyoti Phukan. The strong turnout shows the industry's growing maturity and confidence in delivering clean hydrogen at scale.

Green hydrogen is produced using renewable energy to split water into hydrogen and oxygen, creating zero carbon emissions. It's considered crucial for decarbonizing heavy industries like steel manufacturing, chemical production, and oil refining that can't easily run on batteries or solar panels alone.

The breakthrough price matters because cost has been the biggest barrier keeping green hydrogen from replacing fossil fuels. Just a few years ago, green hydrogen cost significantly more, making it uncompetitive with traditional options.

The Ripple Effect

This pricing milestone could accelerate India's ambitious clean energy goals and influence global markets. As the world's third-largest energy consumer, India's ability to produce affordable green hydrogen could create a blueprint for other developing nations.

The competitive bidding process demonstrates that multiple companies now have the technical capability and financial confidence to deliver green hydrogen at unprecedented prices. That competition drives innovation and further cost reductions.

Oil refineries like Numaligarh are among the first major industrial users adopting green hydrogen, helping create the demand needed for the industry to scale up. As production volumes increase, prices are expected to drop even further.

India has set a target to produce 5 million tons of green hydrogen annually by 2030. Achieving today's record-low price moves that goal from ambitious to achievable.

The future of affordable clean industrial fuel just got a little brighter.