Green Hydrogen Startups are at the forefront of India’s clean energy revolution, and the Centre’s INR 100 Cr scheme is a game-changer for eco-innovators. Launched to fuel sustainable energy solutions, this initiative provides critical funding, mentorship, and infrastructure support to startups tackling green hydrogen production. By empowering entrepreneurs, the scheme strengthens India’s path to net-zero emissions by 2070. In this article, Startup INDIAX explores how this funding will transform the green energy landscape, who qualifies, and why it matters for India’s future. Learn how this bold move is sparking innovation and what it means for startups and the planet.
What Is the Green Hydrogen Scheme and Why Does It Matter?
The Indian government’s INR 100 Cr Green Hydrogen Scheme is a transformative initiative aimed at accelerating the growth of green hydrogen startups. Announced in 2025, this scheme provides financial backing, technical support, and market access to early-stage companies innovating in green hydrogen—a clean energy source produced using renewable energy with zero carbon emissions.
Why does this matter? Green hydrogen is a cornerstone of sustainable energy, offering a versatile solution for decarbonizing industries like transportation, manufacturing, and power generation. According to the International Energy Agency (IEA), global demand for green hydrogen could reach 150 million tonnes by 2030. For India, this scheme is a strategic move to capture a share of this market while addressing climate change. Startup INDIAX recognizes this as a pivotal moment for Indian entrepreneurs to lead the global clean energy race.
How Will INR 100 Cr Funding Transform Green Hydrogen Startups?
The INR 100 Cr scheme is designed to empower startups by addressing their biggest hurdles: funding, scalability, and market entry. Here’s how it will reshape the ecosystem:
Who Can Apply for the Scheme?
The scheme targets early-stage startups and MSMEs focused on green hydrogen production, storage, or utilization. Eligible companies must demonstrate innovative technologies, such as electrolyzers or fuel cells, and a commitment to sustainability. The government has streamlined the application process through a dedicated online portal, ensuring transparency and accessibility.
Key Eligibility Criteria (based on government guidelines):
- Registered startups or MSMEs in India.
- Focus on green hydrogen or related clean energy solutions.
- A viable prototype or proof of concept.
What Are the Key Benefits for Startups?
The scheme offers a trifecta of support:
- Financial Aid: Grants and low-interest loans up to INR 100 Cr to fund R&D, pilot projects, and scaling.
- Mentorship: Access to industry experts and research institutions like the Indian Institute of Science (IISc).
- Infrastructure: Subsidized access to testing facilities and renewable energy sources.
For example, startups like H2e Power, which specializes in green hydrogen electrolyzers, could leverage this funding to scale production, reducing costs by up to 30%, as per industry estimates. This support is a lifeline for startups struggling with high capital costs, as noted by Dr. Anil Kakodkar, former chairman of the Atomic Energy Commission: “Green hydrogen is capital-intensive, but government backing can bridge the gap for innovators.”
Why Is Green Hydrogen Critical for India’s Energy Future?
India’s energy demand is projected to grow by 35% by 2030, according to the Ministry of Power. With fossil fuels still dominating the energy mix, green hydrogen offers a clean alternative to reduce emissions. It can power heavy industries, long-haul transport, and even rural electrification, making it a versatile solution.
Key Stats:
- Green hydrogen could replace 5% of India’s fossil fuel consumption by 2030 (NITI Aayog).
- It has the potential to cut 50 million tonnes of CO2 annually by 2040.
By fostering green hydrogen startups, India is positioning itself as a global leader in clean energy. Startup INDIAX has covered similar initiatives, noting how government support accelerates innovation in emerging sectors.
How Does the Scheme Align with India’s Net-Zero Goals?
India has pledged to achieve net-zero emissions by 2070, and green hydrogen is a critical pillar of this vision. The National Hydrogen Mission, launched in 2021, aims to make India a green hydrogen hub. The INR 100 Cr scheme aligns with this by:
- Encouraging domestic production to reduce reliance on imported fossil fuels.
- Supporting R&D to lower green hydrogen production costs, currently around $4–5/kg compared to $1–2/kg for grey hydrogen.
- Promoting public-private partnerships to scale infrastructure.
For instance, companies like Reliance Industries have already invested in green hydrogen projects, signaling strong industry interest. The scheme amplifies such efforts by empowering smaller players to compete.
What Challenges Do Green Hydrogen Startups Face?
Despite the promise, green hydrogen startups face significant challenges:
- High Costs: Electrolysis requires expensive equipment and renewable energy inputs.
- Infrastructure Gaps: Limited refueling stations and storage facilities hinder adoption.
- Market Readiness: Industries are slow to transition from fossil fuels due to cost disparities.
The INR 100 Cr scheme addresses these by subsidizing costs and providing infrastructure access. However, startups must also navigate regulatory hurdles and secure long-term contracts to ensure viability. As Startup INDIAX has reported, collaboration between startups, government, and corporates is key to overcoming these barriers.
How Can Startups Maximize the Scheme’s Opportunities?
To make the most of the Green Hydrogen Scheme, startups should:
- Build Strong Proposals: Highlight innovation, scalability, and environmental impact in applications.
- Leverage Partnerships: Collaborate with research institutions or corporates for technical expertise.
- Focus on Cost Reduction: Innovate to lower production costs, making green hydrogen competitive.
- Engage with Communities: Educate industries and consumers about green hydrogen benefits.
For example, Ohmium International, a green hydrogen startup, has successfully partnered with renewable energy providers to reduce costs. By following such strategies, startups can maximize the scheme’s impact.
Conclusion: Join the Green Energy Revolution
The INR 100 Cr Green Hydrogen Scheme is a bold step toward a sustainable future, empowering startups to drive India’s clean energy revolution. By providing funding, mentorship, and infrastructure, it’s paving the way for entrepreneurs to innovate and scale. Startup INDIAX invites you to join the conversation—share your thoughts in the comments, explore more startup stories on our platform, or connect with us to learn how you can be part of this green wave!
FAQs
What is the INR 100 Cr Green Hydrogen Scheme?
It’s a government initiative providing INR 100 Cr in funding, mentorship, and infrastructure to green hydrogen startups in India.
Who is eligible for the Green Hydrogen Scheme?
Early-stage startups and MSMEs with innovative green hydrogen solutions, registered in India, can apply.
How does green hydrogen help the environment?
Green hydrogen produces zero carbon emissions, reducing reliance on fossil fuels and cutting CO2 emissions significantly.
What are the challenges for green hydrogen startups?
High production costs, limited infrastructure, and slow market adoption are key hurdles, addressed partly by the scheme.
How can startups apply for the scheme?
Applications are submitted via a dedicated online portal with details on eligibility and requirements.