Author
LoansJagat Team
Read Time
5 Min
14 May 2025
Radha owns a company that runs 100 trucks a day. If she switches to green hydrogen, she can save up to ₹40 lakh in fuel costs per year.
At the same time, it can reduce nearly 600 tonnes of carbon emissions annually. Green hydrogen promises such huge impacts.
The government has formally introduced the Green Hydrogen Certification Scheme (GHCS) so that you can trust this clean fuel for your industry and exports.
The government expects to introduce consistency and transparency in the trade and production of green hydrogen with the introduction of this scheme.
Until now, there was no way to identify whether the hydrogen utilised by your company was really green. The new government scheme has officially endorsed the production of hydrogen using sources of clean energy such as wind and solar.
This certification will help you track emissions from start to finish. It also ensures that only clean hydrogen is labelled as green.
You can check the essential details of the scheme:
Parameter | Information |
Announced By | Ministry of New & Renewable Energy (MNRE) |
Date of Launch | April 2025 |
Verification Body | Bureau of Energy Efficiency (BEE) |
Target Users | Refineries, Fertilizer Plants, Industries |
Limit of Emission | 2 kg CO₂ per kg of hydrogen |
Main Aim | Promote clean energy, supporting domestic industries and exports |
Oil refining, fertilizer production, and steel manufacturing mainly uses hydrogen. However, not all hydrogen is clean.
A lot of it is produced from fossil fuels, which release carbon dioxide. The new scheme makes sure that hydrogen is certified only if it fulfils standards of low-emission.
Different types of hydrogen:
Type | Source | Emissions per kg H₂ | Cost Estimate (₹ per kg) |
Grey | Natural Gas | 10 to 12 kg CO₂ | ₹180 to ₹200 |
Blue | Fossil + Capture | 2 to 4 kg CO₂ | ₹220 to ₹240 |
Green | Renewable Energy | Less than 2 kg CO₂ | ₹250 to ₹270 (expected) |
This certification will help your business in moving to cleaner options while staying competitive globally.
The process of certification makes sure the hydrogen you buy as green is truly clean and certified. The steps of certification include:
Step | Description |
Production | Use of renewable electricity |
Emission Calculation | Carbon emissions per kg of hydrogen |
Audit | Done by third-party agency (such as BEE) |
Certification | Granted when emission levels stay within the approved limit |
Registration | Recorded on a central digital platform |
It is expected that the market for green hydrogen will grow rapidly. Our country is targeting to become a major player in green hydrogen by 2030.
This scheme will help you in aligning the production of green hydrogen with your long-term goals. The estimates of the market are:
Item | 2025 Projection | 2030 Target |
Demand for Green Hydrogen | 1 million tonnes | 5 million tonnes |
Production Plants for Green H₂ | 20+ | 100+ |
Manufacturing of Electrolyser | 5 GW | 60+ GW |
Average Cost of Green H₂ | ₹260 per kg | ₹150 per kg |
Estimated Job Creation | 50,000+ | 2 lakh+ |
If you replace even 25% of traditional hydrogen with green hydrogen, it will help you in reducing emissions by millions of tonnes each year.
If your industry relies heavily on hydrogen, by using green hydrogen you can easily lower your carbon footprint and meet global sustainability norms.
Impact and Use Cases:
Sector | Current Use (Tonnes Per Year) | CO₂ Savings (Tonnes Per Year) |
Fertilizers | 1.5 million | 12 to 15 million |
Refineries | 2 million | 18 to 20 million |
Steel | 0.5 million | 4 to 5 million |
Activity Area | Business Scope |
Supply of Equipment | Pipes, fittings, valves, sensors |
Installation | Electrolyser setup and servicing |
Digital Tools | Software to monitor emission |
Training | Skill development and workshops |
Export Support | Meeting overseas certification norms |
You might know that green hydrogen is a bit expensive because of the high costs of renewable energy and electrolysers. As production scales up, costs are likely to come down.
The expected price trend is:
Year | Estimated Price (₹ per kg) |
2025 | ₹260 to ₹270 |
2026 | ₹220 to ₹240 |
2027 | ₹180 to ₹200 |
2028 | ₹150 to ₹170 |
For the Indian Government, the Green Hydrogen Certification Scheme is an important milestone. Whether you own a large industrial plant or a small unit, the GHCS will put credibility and clarity to your clean energy goals.
This one certification will work as:
This scheme is not only about completing environmental boxes. It is about giving your business the correct tools to grow responsibly and fulfil new market demands.
1. Will certified hydrogen help me in exports?
Yes, certified hydrogen will help you in meeting the standards of foreign import, which will make exports easier.
2. I own a small business, can I apply for the certification?
Yes, you can participate in manufacturing, services, and supply chains.
3. What is the emission cut-off for green hydrogen?
The carbon emissions from hydrogen production should not exceed 2 kilograms of CO₂ for every kilogram of hydrogen produced.
4. Who checks the emission data?
Bodies approved by the government, such as the Bureau of Energy Efficiency, are responsible for verification.
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LoansJagat Team
We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?
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