Green Hydrogen as the Missing Link: Decarbonising Hard-to-Abate Industries and Advancing India’s 500 GW Non-Fossil Fuel Target
Green hydrogen, produced through electrolysis using renewable electricity, offers a zero-carbon alternative by providing high-temperature heat for industrial processes, acting as a clean reducing agent in metallurgical applications, serving as a low-emission feedstock for fertiliser and chemical production, and enabling decarbonised fuels for heavy transport and shipping.
March 12, 2026. By News Bureau
The Imperative: Hard-to-Abate Industries and Structural Emissions
While renewable power deployment disrupts conventional grids and transportation, several industrial sectors continue to rely on carbon-intensive processes that defy simple electrification. These hard-to-abate industries include:
- Steel production
- Cement manufacturing
- Refineries and petrochemicals
- Fertiliser production
- Heavy transport (shipping, aviation, long-haul trucking)
Collectively, these sectors contribute a significant share of global and Indian emissions, and their energy demands are not easily served by batteries or direct grid electrification.
This complexity demands an alternative energy carrier – one that is storable, transportable, and capable of generating both high-temperature heat and zero-carbon feedstock. Enter green hydrogen.
Green Hydrogen: A Multi-Dimensional Solution
India’s renewable pipeline (solar and wind) is rapidly expanding. Green hydrogen can act as a seasonal and sector-agnostic energy carrier, absorbing excess renewable output and converting it into a usable industrial commodity.
Reducing dependence on imported fossil fuels enhances energy security. Green hydrogen also opens opportunities for export markets – in the form of hydrogen itself or derived chemicals like ammonia.
Decarbonising Hard-to-Abate Sectors with Green Hydrogen
Hard-to-abate sectors like steel, cement, fertilisers, refineries, heavy transport, and chemicals account for a significant portion of global and national greenhouse gas emissions. These sectors typically rely on fossil fuels for high-temperature heat and carbon-intensive feedstocks, making direct electrification either impractical or insufficient.
Green hydrogen, produced via electrolysis powered by renewable electricity, offers a zero-carbon alternative that can:
- Provide high-temperature heat for industrial processes,
- Act as a zero-carbon reducing agent in metallurgical processes,
- Serve as a clean feedstock in fertiliser and chemical production,
- Enable decarbonised fuels for heavy transport and shipping.
This versatility makes green hydrogen indispensable to India’s net-zero aspirations
| Sector | Why It’s Hard to Abate | Green Hydrogen Advantage |
| Steel | ~2 t CO2 per tonne of steel emitted from coal-based processes | Enables near-zero carbon steel via H2-DRI |
| Refineries | Grey hydrogen drives high scope-1 emissions | Direct switch to green hydrogen cuts emissions immediately |
| Fertilisers | Ammonia production emits millions of tonnes of CO2 | Zero-emission green ammonia; export-ready fuel |
| Cement & Process Heat | High-temperature heat is not easily electrified | H2 combustion/blending replaces fossil fuels |
| Heavy Transport | Batteries limited by weight & range | Fuel cells/ ICE Vehicles enable zero-emission long-haul mobility |
Pilot Projects: From Steel to Shipping and Mobility
To build real-world traction, India has initiated a series of pilot projects under the NGHM and allied schemes—each designed to de-risk technologies, validate economics, and demonstrate operational readiness.
Steel Sector Decarbonisation Pilots
Steelmaking is both a high-emission process and a core driver of industrial emissions.
Under NGHM, three pilot projects have been awarded to explore hydrogen use in steelmaking, including:
- 100 percent hydrogen-based Direct Reduced Iron (DRI), showing a pathway to near-zero carbon iron.
- Hydrogen injection in blast furnace operations to reduce coal/coke usage.
- Hydrogen blending in vertical shaft DRI units to gradually decarbonise existing processes.
These projects, backed by consortia involving industry and research institutes, are expected to provide crucial data for future scale-ups.
Shipping and Port Pilots
Recognising the role of hydrogen and its derivatives in green maritime fuels, the NGHM has allocated funding to:
- Retrofit existing vessels to use green hydrogen or hydrogen-derived fuels,
- Develop bunkering and refuelling infrastructure along key shipping corridors.
In practical terms, initiatives like the green hydrogen plant at VOC Port, Tuticorin, demonstrate localised production tied to clean operations, including street-lighting and EV charging, alongside plans for bunkering support.
Mobility and Transport Pilots
Under the NGHM, 10 National Highways across the country were identified for developing the infrastructure required for piloting both long-range fuel cell-based and ICE engine-based Trucks and buses.
These projects are backed by consortia involving industry and research institutes, are expected to provide crucial data for future scale-ups.
Synergies with the 500 GW Non-Fossil Target
Green hydrogen directly fortifies India’s renewable expansion by:
- Creating flexible demand for renewable power, absorbing variable generation during low-demand periods,
- Enabling renewable energy integration at scale with storage and sector coupling,
- Driving industrial electrification where direct electrification isn’t viable, especially in high-temperature and feedstock applications.
Ultimately, green hydrogen’s integration with India’s clean energy ecosystem enhances the credibility of the 500 GW target – not as an endpoint, but as a springboard to deep decarbonisation across the economy.
The Way Ahead
Green hydrogen is more than a fuel or feedstock; it’s a strategic enabler for India’s dual objectives of industrial decarbonisation and renewable capacity leadership. As global mechanisms like CBAM reshape trade realities, green hydrogen also becomes a competitiveness imperative for Indian exporters.
The synergies between policy frameworks, pilot projects, and industrial adoption demonstrate that India is not only preparing for a cleaner future but shaping it. With continued investment, technological innovation, and market development, green hydrogen will truly become the missing link in India’s journey to net-zero and beyond.
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