S&P Global: Gujarat's Green Hydrogen Target of 3 Million Tonnes, Large Projects Still at Feasibility Stage
en.Wedoany.com Reported - S&P Global noted in a report that Gujarat is emerging as a key hub for India's renewable hydrogen development, but most large-scale projects in the state remain at the feasibility stage.
The report, titled "Gujarat green hydrogen: Turning an ambition into reality," argues that Gujarat possesses several structural advantages that can support the long-term development of renewable hydrogen production capacity.
S&P Global stated that India is emerging as an important player in the development and future expansion of the renewable hydrogen industry, and Gujarat is particularly well-positioned given its existing industrial and energy infrastructure.
The report cites the following evidence: approximately 40% of India's refining capacity and about 30% of its ammonia production capacity are located in Gujarat; the state's combined solar and wind installed capacity is close to 50 GW; and at least 40% of India's seaborne trade enters through Gujarat's ports. These conditions provide both potential domestic demand and infrastructure for hydrogen production, transportation, and export.
On the policy front, Gujarat's Energy and Petrochemicals Department finalized its hydrogen strategy in December 2025, setting production targets and providing financial support for early-stage projects. According to the report, the first 500 MW of electrolyzer capacity commissioned in Gujarat will receive a range of financial incentives, with the policy covering capital subsidies for eligible electrolyzer components, battery energy storage, oxygen collection, and water desalination facilities.
On the demand side, the policy also provides support, including subsidies for hydrogen refueling stations, hydrogen-powered buses, and heavy-duty vehicles, as well as cost compensation for renewable hydrogen used in industrial applications and hydrogen blended into the natural gas grid.
Regarding production targets, Gujarat has proposed producing 3 million metric tonnes per annum of renewable hydrogen by 2035, the highest target among Indian states compared by S&P Global. However, the report cautions that this target remains highly ambitious.
Despite policy support, most of Gujarat's production capacity remains at an early stage of development. The state has the largest number of late-stage projects among Indian states, but Andhra Pradesh and Odisha have larger late-stage project capacities. The report states that Gujarat's large-scale projects remain at the feasibility stage and may advance following recent support under India's Strategic Interventions for Green Hydrogen Transition (SIGHT) program.
At the national level, the Indian government's National Green Hydrogen Mission proposes producing 5 million metric tonnes per annum of renewable hydrogen by 2030; the SIGHT program has received an initial allocation of Rs 170 billion (170 billion rupees) to cover projects across the hydrogen value chain.
S&P Global also highlighted India's growing role in international hydrogen trade. Among trade-related offtake agreements for renewable hydrogen and derivatives signed in 2024 and 2025, Indian developers accounted for 40% of the contracted volume; in transactions concluded so far in 2026, this share has risen to 80%.
For Gujarat, its west coast location could provide an advantage in supplying the European market, particularly through ammonia exports. However, the report notes that competition from the Middle East and China means that both state and federal support will remain important for maintaining export competitiveness. The report argues 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.
