Maharashtra Sets Bold Course to Lead India’s Green Hydrogen Revolution
In a significant push towards a clean energy future, Maharashtra is charting an ambitious path to become India’s foremost green hydrogen hub by 2030. With its 2023 Green Hydrogen Policy as a launchpad, the state is targeting production of 500 kilotons of green hydrogen annually, a move that aligns with national decarbonisation goals and positions Maharashtra as a key player in the global green energy transition.
A new report by RMI India, a reputed clean energy think tank, provides a comprehensive roadmap for realizing this vision—detailing cost trends, infrastructural needs, and investment opportunities. The report doesn’t just highlight challenges—it outlines actionable solutions, including location-specific readiness plans, financial levers, and governance frameworks that could make green hydrogen both viable and scalable in Maharashtra.
From Policy to Practice: Bridging the Green Hydrogen Gap
Maharashtra’s policy framework offers a solid foundation, but as the RMI report emphasizes, transitioning from intent to implementation requires focused interventions. One of the most pressing challenges is the cost gap between grey and green hydrogen.
Currently, green hydrogen production in Maharashtra is not cost-competitive with its fossil-fuel-based counterpart. However, the RMI study reveals that targeted state incentives are proving effective in narrowing this price differential.
“Strategic capital expenditure subsidies can slash hydrogen production costs by up to 25%, bringing it from $4.5/kg down to under $3.5/kg,” the report notes.
This is a game-changer—especially for industrial sectors like steel, fertilisers, and refining that are poised to transition to clean hydrogen-based fuel if price parity is achieved.
Understanding the Cost Dynamics
The report compares different project models and their financial feasibility:
- On-site green hydrogen projects currently offer the lowest levelized cost of hydrogen (LCOH)—approximately $4/kg. However, they face land availability constraints, especially in industrial corridors.
- Third-party supply models are more scalable and offer better utilization of renewable power, but they come at a higher price due to transmission and integration costs.
- Projects that connect to India’s Central Transmission Utility (CTU), paired with anchor units and bundled subsidies, can reduce overall hydrogen costs by up to 30%, making such models highly attractive for industrial parks and export-oriented hydrogen production.
Raigarh and Ratnagiri: Future-Ready Hydrogen Hubs
Among Maharashtra’s many industrial and coastal districts, Raigarh and Ratnagiri have emerged as front-runners for green hydrogen hub development. Their strategic coastal locations, existing industrial bases, and potential for renewable energy generation make them ideal candidates for early deployment.
These regions score high across several parameters:
- Access to renewable energy corridors
- Proximity to heavy industries and ports
- Availability of industrial land banks
- Readiness of transmission infrastructure
With the right investment, these districts could serve as pilot sites for replicable, high-impact hydrogen ecosystems across the country.
RMI’s Framework: A Blueprint for Scalable Success
To operationalize Maharashtra’s green hydrogen vision, RMI proposes a Green Hydrogen Readiness Plan anchored on seven critical impact areas spanning the hydrogen value chain:
- Physical Infrastructure – Ensuring access to grid-connected renewable energy, water resources, and storage systems.
- Market Creation – Building demand through industrial use-cases, transport applications, and long-term procurement agreements.
- Policy Commitment – Streamlining regulatory approvals, land allocation, and providing legal clarity on hydrogen safety.
- Financial Assistance – Offering CapEx and OpEx subsidies, viability gap funding, and risk guarantees.
- Technology and Innovation – Supporting R&D for electrolysis, compression, storage, and fuel cell integration.
- Workforce Development – Training youth in hydrogen-related trades and green jobs.
- Inter-agency Coordination – Aligning efforts between state departments, central ministries, and private stakeholders.
The report stresses that a well-balanced mix of incentives and strong governance mechanisms is essential for long-term success.
Why Maharashtra Has the Edge
Maharashtra’s industrial diversity, strong power infrastructure, and renewable energy capacity make it a natural contender for India’s hydrogen leadership. The state already has operational and planned renewable energy projects across wind, solar, and hybrid formats—making it easier to green the hydrogen supply chain.
In addition, Maharashtra’s existing experience with public-private energy partnerships, and its ranking among the top industrialised states, lend confidence to investors and developers looking to scale green hydrogen ventures.
Green Hydrogen: A Catalyst for Climate and Jobs
Beyond decarbonisation, the green hydrogen economy can be a powerful employment and export driver. Estimates suggest that achieving Maharashtra’s 2030 target could generate tens of thousands of new green jobs in areas like electrolysis system design, plant operations, hydrogen logistics, and safety services.
This aligns with India’s broader energy transition goals and international commitments under COP28 and the Hydrogen Mission.
The Road Ahead: Actions Speak Louder Than Targets
Maharashtra’s green hydrogen ambition is bold and achievable—but only if paired with consistent policy implementation, responsive regulation, and multi-stakeholder collaboration.
The RMI report’s actionable insights come at a pivotal time. As India eyes global hydrogen markets and builds domestic capability, states like Maharashtra have a unique chance to lead by example.
By focusing on cost competitiveness, regional hubs, and inclusive policy, Maharashtra could well become the national benchmark for a resilient, low-carbon hydrogen ecosystem—setting the stage not just for industrial decarbonisation, but also green economic growth that benefits all.
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