Gujarat has emerged as India’s most resource-ready state for green hydrogen hubs, according to a WRI India study.
The study says proximity to renewable energy and hydrogen consumers are the two biggest factors in deciding where green hydrogen hubs should be located.
Water availability ranks third, making it a key constraint for states such as Rajasthan despite their strong renewable energy potential.
The authors say India will need region-specific strategies, interstate links and better data on land, water, infrastructure and industrial demand to plan future hydrogen hubs.
Gujarat has emerged as India’s most resource-ready state for green hydrogen hubs, while proximity to renewable energy and hydrogen consumers are the two most important factors in deciding where such hubs should be located, according to a new study.
Water availability ranks third, ahead of power transmission and transport infrastructure.
The findings come as India seeks to scale up green hydrogen production under the National Green Hydrogen Mission, launched in 2023 with a target of 5 million metric tonnes of annual production by 2030 and an outlay of Rs 1,974.4 crore, or about $2.7 billion. The Union Ministry of New and Renewable Energy released guidelines in June 2025 for large-scale green hydrogen hubs and Hydrogen Valley Innovation Clusters.
India has about 11.7 million metric tonnes per annum of green hydrogen production capacity identified under the mission, but only about 0.34 million metric tonnes, or 2 per cent, has been commissioned so far. Most projects remain announced, planned or in early construction stages.
The study, by WRI India’s A Nallapaneni, Y Jain and V Bharadwaj, proposes a two-stage geographical information system-based methodology to identify suitable locations for hydrogen hubs.
The study uses the Analytical Hierarchy Process, based on consultations with experts from academia and industry, to assign weights to five primary criteria across the green hydrogen value chain.
Under the resource scenario, renewable energy sources account for 55.84 per cent of the weighting, followed by water availability at 27.05 per cent and power transmission at 17.11 per cent.
Under the consumption scenario, hydrogen consumers account for 64.74 per cent, while transport and distribution account for 35.26 per cent.
At the sub-criterion level, solar energy receives the highest weight at 40.51 per cent, followed by hydropower at 24.72 per cent, wind energy at 23.20 per cent and renewable energy parks at 11.57 per cent.
Surface water accounts for 63.43 per cent of the water availability weighting, while groundwater accounts for 36.57 per cent.
Among hydrogen consumers, oil refineries account for 41.69 per cent, fertiliser plants 37.41 per cent and steel plants 20.90 per cent. Oil refineries and fertiliser plants account for around 99 per cent of hydrogen consumption in India, the paper said.
Renewable energy can account for 60 per cent to 70 per cent of the total cost of green hydrogen production, making access to low-cost renewable power crucial for hub development.
Gujarat consistently ranks as the most resource-ready state in both existing and potential resource scenarios. Its performance is driven by renewable energy infrastructure, future renewable energy capacity, power transmission network coverage and water availability.
Rajasthan follows Gujarat, with strong renewable energy resources and power transmission infrastructure. However, low water availability and weaker hydrogen demand scores remain constraints.
Andhra Pradesh follows Rajasthan in the resource scenarios, with a relatively balanced combination of renewable energy, transmission infrastructure and water availability.
Maharashtra improves when potential renewable energy capacity is considered, suggesting that scaling up renewable energy deployment could improve its suitability for hydrogen production.
Madhya Pradesh and Uttar Pradesh score strongly on power transmission but would need strategic water management and targeted renewable energy investment.
In the consumption scenario, Gujarat again ranks first, supported by hydrogen consumers and strong transport and distribution infrastructure. Maharashtra follows, helped by its road and gas pipeline networks and seaport access.
Odisha and Karnataka also score moderately high on hydrogen consumers and transport infrastructure. Andhra Pradesh and Uttar Pradesh show moderate potential, supported respectively by gas pipelines and ammonia demand.
Tamil Nadu and Madhya Pradesh perform relatively well on transport and distribution infrastructure but score lower on hydrogen consumers because of limited industrial demand.
The second stage of the analysis assessed five coastal and five non-coastal states selected on the basis of the first stage results.
Each state was divided into a 5 kilometre hexagonal grid, and heat maps were used to identify high-scoring locations after excluding areas covered by environmental and geological constraints.
In coastal states, high-ranking locations include Visakhapatnam in Andhra Pradesh; Gadag, Koppal and Mangaluru in Karnataka; Mumbai in Maharashtra; Angul and Paradeep in Odisha; and Chennai in Tamil Nadu.
Visakhapatnam benefits from seaports, multiple consumers, roads and power transmission networks. Mangaluru combines a seaport, fertiliser plant, oil refinery and gas pipeline network.
Mumbai scores on multiple consumers, gas pipeline connectivity, seaports, roads, surface water and power transmission. Chennai benefits from consumers, transmission infrastructure, gas pipelines, seaports and roads.
In Odisha, Angul is supported by a solar plant, hydropower plant, power transmission and surface water, while Paradeep benefits from gas pipeline and seaport connectivity, roads and multiple consumers.
The study said coastal sites tend to benefit from the co-location of ports, hydrogen-consuming industries and gas pipeline networks. Ports also provide access to international markets for green hydrogen derivatives such as ammonia and methanol.
However, the study also identifies inland, resource-centred sites in coastal states, especially where renewable energy plants and parks are concentrated. Angul, Gadag and Koppal fall into this category.
In non-coastal states, high-ranking locations include Bokaro and Dhanbad in Jharkhand, Bhatinda and Moga in Punjab, Khandwa and Khargone in Madhya Pradesh, Kota in Rajasthan, and Kanpur Dehat and Kanpur Nagar in Uttar Pradesh.
Kota’s suitability is driven by fertiliser industries, hydropower generation, road connectivity, surface water and nearby gas pipelines.
Bokaro and Dhanbad have access to hydrogen consumers, including fertiliser and steel plants, as well as hydropower, gas pipelines, water availability and power transmission.
Bhatinda combines a solar plant, renewable energy park, fertiliser plant and gas pipeline access. Khandwa and Khargone benefit from solar and hydropower plants, surface water and power transmission.
Kanpur Dehat benefits from a renewable energy park, transmission infrastructure, surface water and road connectivity, while Kanpur Nagar combines transmission infrastructure with a fertiliser plant, surface water, roads and gas pipeline access.
The clustering shows that proximity alone is not enough. High suitability often depends on several resources and demand centres being located within the same district or nearby districts.
The study identifies several regions with substantial renewable energy resources that do not rank among the top sites because they lack other critical factors.
Western Rajasthan around Jaisalmer, for instance, has several renewable energy plants and parks but scores low on water availability, industrial hydrogen demand and other infrastructure. Similar patterns appear in Kadapa and Nandyal in Andhra Pradesh, Beed in Maharashtra and Shajapur in Madhya Pradesh.
Gadag and Koppal in Karnataka, and Angul in Odisha, have strong renewable energy resources and surface water but lack proximity to hydrogen consumers. These locations have high production potential but would need complementary infrastructure and demand development.
Conversely, Kakinada in Andhra Pradesh, Guna in Madhya Pradesh and Cuttack in Odisha show moderate performance across hydrogen demand and transport infrastructure. The study said such areas could be developed as hydrogen hubs through targeted investment.
The authors argue that India should develop region-specific strategies rather than rely on a single model for hydrogen hubs. Each state has a different mix of renewable energy, infrastructure, industrial demand and connectivity.
The methodology can help identify infrastructure gaps and guide investment in power transmission, gas pipelines and hydrogen demand, while accounting for competing pressures on land and water.
It also points to scope for interstate collaboration, as renewable energy, hydrogen demand, water and connecting infrastructure are distributed unevenly across India.
Resource-rich states such as Rajasthan, Gujarat and Tamil Nadu could be linked with demand centres in regions such as Uttar Pradesh and Maharashtra. But the authors caution that this would require coordinated infrastructure development, cross-border resource sharing and attention to economic and social impacts.
The methodology does not currently assess capital costs, operating expenses, electricity prices, land prices or access to land and water, all of which can affect financial feasibility.
It also does not capture competing demands for land and water from agriculture, households and other industries, or questions of access, equity, negotiation and inclusion.
The study recommends using higher-resolution spatial data, economic assessments and social impact considerations in future applications.