Gujarat has unveiled India's most ambitious target for renewable hydrogen production, aiming to reach 3 million metric tons annually by 2035. This ambitious goal positions the state alongside several countries in terms of green hydrogen aspirations, far exceeding the 2030 targets set by other Indian states.
Strategic Policy and Infrastructure Advantages
The state's recently introduced policy offers comprehensive support across the entire hydrogen value chain, with a particular emphasis on incentivizing first-mover projects in both supply and demand sectors. According to an S&P Global energy assessment, this 2035 target is considered more realistic than some earlier state-level ambitions, partly due to the policy's recency and its focus on practical implementation.
Crucially, Gujarat's pre-existing natural gas networks present a potential pathway for hydrogen transmission, which could significantly aid demand growth and infrastructure development. The state also boasts approximately 40% of India's refinery capacity and 30% of its ammonia production, providing a strong industrial base that can pivot towards green hydrogen and ammonia utilization.
Powering Green Hydrogen Production
Gujarat's substantial electricity generation capacity, the highest among all Indian states, is a significant asset. This robust power infrastructure allows electrolysers, critical for renewable hydrogen production, to integrate seamlessly with existing transmission lines. Furthermore, the state has nearly 50 gigawatts of combined solar and wind energy capacity, providing a clean and abundant power source essential for green hydrogen initiatives.
Logistical Edge for Exports
With at least 40% of India's maritime trade passing through its ports, Gujarat possesses a distinct logistical advantage. This established port infrastructure facilitates large-scale equipment deliveries for new projects and enables efficient bulk exports of renewable hydrogen and its derivatives, like green ammonia. Shipping green ammonia from India's west coast, particularly Gujarat, to Europe is also more cost-effective compared to projects on the east coast.
Addressing Competitive Challenges
Despite these advantages, Gujarat's renewable hydrogen exports will face stiff competition from products originating in the Middle East, which often benefit from lower production costs. To ensure competitiveness in international markets, the Gujarat state government will need to implement domestic production incentives. These state-level grants, coupled with federal support from the Indian government, will be vital for maintaining a competitive edge and realizing Gujarat's ambitious green hydrogen vision.