New Delhi, Sep 25: Gujarat is emerging as a major centre for India’s renewable hydrogen industry, supported by its industrial base, renewable energy capacity, port infrastructure and state incentives. However, the large-scale projects planned in the state are still largely at the feasibility stage, according to a recent report.

Gujarat has several advantages that could support the growth of the green hydrogen industry. Around 40 per cent of India’s refinery capacity and nearly 30 per cent of its ammonia capacity are located in the state, creating a large potential domestic market for hydrogen.

The state also has nearly 50 GW of combined solar and wind capacity, while ports in Gujarat handle a significant share of India’s maritime trade. This gives the state access to renewable power, industrial consumers and export routes, three important requirements for developing a hydrogen ecosystem.

Gujarat has set an ambitious target of producing 3 million tonnes of renewable hydrogen a year by 2035. Its policy framework includes financial support for electrolyser components, battery storage, oxygen recovery and water desalination, along with incentives for hydrogen refuelling stations and hydrogen-powered vehicles.

Despite the strong policy push, actual project development remains at an early stage. The report noted that while Gujarat has a high number of projects in advanced stages compared with other states, several large-scale projects are still undergoing feasibility assessments.

The situation reflects a broader challenge for India’s green hydrogen industry. Developers are moving from project announcements towards final investment decisions and construction, but the sector still needs competitive production costs, infrastructure and reliable long-term demand to scale up.

Gujarat’s western coastal location could also support future exports of renewable hydrogen derivatives such as green ammonia, particularly to international markets. At the same time, competition from other regions and countries means project economics and continued policy support will remain important.

For businesses, the expansion of green hydrogen could create opportunities across renewable power, electrolysers, storage, ports, transportation, engineering and industrial applications. As projects move from feasibility studies to actual construction, Gujarat’s existing industrial ecosystem could become an important base for India’s clean-energy manufacturing and export ambitions.

At the national level, India’s National Green Hydrogen Mission targets 5 million tonnes of annual renewable hydrogen production by 2030, making the development of state-level hubs such as Gujarat an important part of the country’s broader clean-energy transition.