India’s energy transition is entering a decisive decade, and green hydrogen is fast emerging as a critical pillar of this journey. As the country works toward long-term climate goals while sustaining economic growth, states with strong industrial bases and renewable potential have a major role to play. With this in mind, the Government of Gujarat has introduced the Gujarat Green Hydrogen Policy 2025, laying out a clear, ambitious, and action-oriented roadmap to build a full-scale green hydrogen ecosystem.
This blog explains the policy in a simple, human tone—what it aims to achieve, the opportunities it creates, and why it positions Gujarat as one of India’s most important green hydrogen hubs.
Why Green Hydrogen Matters for Gujarat and India
Green hydrogen offers a clean alternative to fossil fuels for sectors that are difficult to decarbonize, such as refining, chemicals, fertilizers, heavy transport, and long-duration energy storage. For India, it is also a strategic solution—reducing dependence on imported fuels while supporting climate commitments.
Gujarat is uniquely placed to lead this transition. The state has a strong industrial ecosystem, excellent solar and wind resources, long coastlines with port access, and experience in large-scale energy projects. The Green Hydrogen Policy 2025 builds on these strengths to align Gujarat’s growth with national missions like the National Green Hydrogen Mission.
Vision, Mission, and Long-Term Targets
The policy sets a clear vision: driving sustainable economic growth while enhancing energy security through large-scale production, use, and export of green hydrogen and its derivatives.
Its mission is equally ambitious—to position Gujarat as a leading green hydrogen hub by achieving 3 million tonnes per annum (MMTPA) of green hydrogen production capacity by 2035. To support this, the policy also targets around 30 GW of electrolyser capacity and 75 GW of renewable energy capacity, along with massive investment and job creation across the value chain.
A Holistic Value-Chain Approach
One of the strongest aspects of the Gujarat Green Hydrogen Policy is its holistic design. Instead of focusing only on hydrogen production, it supports the entire ecosystem:
- Renewable energy generation
- Electrolyser deployment
- Storage and transportation infrastructure
- Hydrogen derivatives like green ammonia and methanol
- End-use applications across industry and mobility
This end-to-end approach ensures that projects are not developed in isolation but as part of a scalable and sustainable system.
Who Can Develop Projects Under the Policy
The policy is open and inclusive. Any company, corporate body, public sector undertaking, or special purpose vehicle can develop green hydrogen projects or application units in Gujarat. Project allocation can happen through competitive bidding or as directed by the state’s governing committees.
Projects must use new plant and machinery and source power from renewable energy—either captive, third-party, distribution licensees, power exchanges, or a mix including energy storage charged from renewables.
Strong Financial Incentives to Kick-Start Growth
To accelerate adoption, the policy offers a wide range of financial incentives:
Electrolysis-Based Green Hydrogen
- Capital subsidy of up to 20% on electrolyser costs
- Additional support for battery energy storage systems
- Incentives for oxygen collection and bottling systems
- Reimbursement of transmission and wheeling charges for renewable power
Biomass-Based Green Hydrogen
- Capital subsidy linked to hydrogen production capacity
- Support for land registration and stamp duty
Green Hydrogen Hubs
- Capital support for integrated hubs covering production, storage, transport, and distribution
- Incentives for shared infrastructure and industrial clustering
These measures significantly reduce early-stage project risk and improve financial viability.
Driving Demand Through Applications and Mobility
The policy does not stop at production—it actively promotes hydrogen usage. Financial support is provided for:
- Green hydrogen refuelling stations
- Hydrogen-powered passenger buses
- Heavy-duty on-road and off-road vehicles
- Industrial consumption by MSMEs
- Blending green hydrogen into city gas distribution networks
By creating real demand, the policy ensures that hydrogen production scales alongside consumption.
Infrastructure, Land, and Water Support
Recognizing that hydrogen projects need more than just subsidies, the policy focuses heavily on enabling infrastructure:
- Priority land allocation through GIDC
- Facilitation of water supply and desalination plants
- Development of green transmission corridors
- Support for storage, transport, and port infrastructure for exports
These measures address common bottlenecks and speed up project execution.
Focus on Skills, Innovation, and Start-Ups
The policy places strong emphasis on long-term capacity building. It supports:
- Specialized training and certification programs
- Industry–academia collaboration
- Re-skilling of workers from fossil-fuel sectors
- Dedicated funding for R&D, Centres of Excellence, and start-up incubation
This ensures that Gujarat not only builds projects but also develops talent, technology, and innovation leadership.
Governance and Ease of Doing Business
A well-defined three-tier governance structure—Apex Committee, Executive Committee, and a dedicated Nodal Agency—ensures smooth implementation. The policy also proposes a single-window digital portal, milestone-based incentive disbursement, and regular policy reviews.
This clarity reduces uncertainty and improves ease of doing business for developers and investors.
What the Gujarat Green Hydrogen Policy 2025 Really Means
The Gujarat Green Hydrogen Policy 2025 is more than a policy document—it is a long-term commitment to building a future-ready, export-oriented, and climate-aligned energy ecosystem. For developers, it offers clarity and incentives. For industries, it enables decarbonization. For investors, it opens a new frontier of large-scale opportunity.
As green hydrogen moves from concept to reality, Gujarat is positioning itself not just as a participant, but as a national and global leader in the hydrogen economy.
Reference: This blog is based on the “Gujarat Green Hydrogen Policy – 2025” issued by the Energy & Petrochemicals Department, Government of Gujarat ↓