Photo Credit: Flicker/ ykanazawa1999
Karthikeyan.J1, Vinothagan.S 2
16 September 2025
Research Scholar, Department of Vegetable Science, Horticultural College and Research Institute, Tamil Nadu Agricultural University, Coimbatore
The emergence of green hydrogen as a cornerstone of India's ambitious net-zero target by 2070 has found an unlikely yet perfect partner in Japan's four-decade legacy of hydrogen technology innovation. This strategic alliance between the world's fifth and third largest carbon emitters represents more than bilateral cooperation—it embodies a transformative approach to energy diplomacy that could reshape Asia's clean energy landscape and accelerate global decarbonization efforts.
Historical Foundation and Strategic Alignment
Japan's Hydrogen Legacy
Japan's journey with hydrogen technology began in the 1980s, positioning it as the world's first country to commercialize fuel cell co-generation systems and fuel cell vehicles. This four-decade head start has cultivated unparalleled expertise in hydrogen production, storage, transportation, and utilization technologies. Japan's revised Hydrogen Basic Strategy, released in June 2023, aims to generate 15 trillion yen (approximately $100 billion) in public and private investment over 15 years while targeting a six-fold increase in hydrogen use by 2040.
India's Clean Energy Ambitions
India's National Green Hydrogen Mission, launched in January 2023 with an allocation of ₹19,744 crore ($2.4 billion), represents one of the most ambitious clean energy initiatives globally. The mission targets production of 5 million metric tonnes of green hydrogen annually by 2030, supported by 125 GW of associated renewable energy capacity. This aligns with India's broader "Panchamrit" commitment made at COP26, including achieving 500 GW of non-fossil electricity capacity by 2030 and net-zero emissions by 2070.
Technological Convergence and Complementary Strengths
Japan's Technological Prowess
Japanese companies lead globally in hydrogen production, delivery, and utilization technologies. Mitsubishi Power's development of hydrogen and ammonia firing technologies for gas turbine combined cycle power plants exemplifies Japan's cutting-edge capabilities. Companies like JERA and IHI Corporation are pioneering ammonia co-firing in coal-fired power plants, achieving 20 percent co-firing ratios that could significantly reduce carbon emissions from existing thermal infrastructure.
The efficiency of Japanese hydrogen systems is remarkable—thyristor-based SCR rectifiers achieve over 98.5-99% efficiency at full load, with power conversion losses typically accounting for just 1-2 kWh/kg of hydrogen produced. This technological precision is crucial as India scales up production where electrical systems alone account for 30-50% of electrolyzer project costs.
India's Production Potential
India's vast renewable energy resources provide the foundation for cost-competitive green hydrogen production. With 180 GW of renewable energy already installed and projections for 500 GW by 2030, India can leverage cheap renewable electricity to drive down hydrogen production costs. Current green hydrogen costs in India range from ₹397-560 per kilogram ($4.6-6.7/kg), but are projected to decrease by up to 46% by 2030, potentially reaching ₹260-310 per kilogram ($3-3.75/kg).
Strategic Partnerships and Implementation
JICA-Facilitated Collaborations
The Japan International Cooperation Agency (JICA) has emerged as a crucial facilitator of India-Japan hydrogen partnerships. The landmark collaboration between Mitsubishi Power and Hygenco Green Energies, supported by JICA, exemplifies this strategic approach. Through the NEEV II Fund, JICA has invested in Indian green hydrogen companies, creating a co-creation platform that leverages Japanese technology with Indian production capabilities.
Joint Declaration and Policy Framework
The Joint Declaration of Intent signed between India's Ministry of New and Renewable Energy and Japan's Ministry of Economy, Trade and Industry in August 2025 established a formal framework for hydrogen cooperation. This agreement promotes research, investment, and project execution in hydrogen and ammonia technologies, including transportation and cross-sectoral applications.
Key areas of cooperation include:
Economic Impact and Market Dynamics
Investment Flows and Market Potential
Japan has committed $68 billion in investments in India by 2035, with significant portions allocated to clean energy and hydrogen projects. The electrolyzer market opportunity in India is projected to grow from $4 billion in 2030 to $78 billion by 2050, representing the highest growth rate among Asian economies.
State-Level Initiatives
Regional partnerships are accelerating implementation. Uttar Pradesh's MoU with Japan's Yamanashi Prefecture to establish a Green Hydrogen Centre of Excellence demonstrates how subnational cooperation is driving innovation. With 250 Japanese CEOs scheduled to visit India for energy sector collaborations, the momentum for business-to-business partnerships continues to build.
Technological Innovation and R&D Advancements
Next-Generation Technologies
The collaboration extends beyond current technologies to next-generation innovations. Japanese expertise in hydrogen carriers—including methylcyclohexane (MCH), liquid organic hydrogen carriers, and e-methane—addresses critical transportation challenges for long-distance hydrogen trade. These technologies enable India to potentially export hydrogen to Japan and third countries, creating new revenue streams.
Smart Infrastructure Integration
Digital technologies are transforming hydrogen production efficiency. IoT-enabled monitoring systems, blockchain-based traceability, and AI-optimized production scheduling are being integrated into Indian hydrogen plants with Japanese technological support. These innovations can reduce operational costs by 15-20% while ensuring quality and safety standards.
Overcoming Challenges and Scaling Solutions
Cost Competitiveness
Despite technological advances, the cost gap between green and grey hydrogen remains substantial, ranging from $1.6-3.2/kg. However, the combination of Indian government subsidies (ranging from 25-35% in various states), Japanese technology efficiency, and economies of scale is rapidly narrowing this gap. Strategic Interventions for Green Hydrogen Transition (SIGHT) program provides ₹17,490 crore in financial incentives, making projects increasingly viable.
Infrastructure Development
The development of hydrogen infrastructure requires massive investment and coordination. Japan's experience in building hydrogen refueling networks and India's renewable energy infrastructure capabilities create synergies for comprehensive ecosystem development. Three major Indian ports—Kandla, Paradip, and Tuticorin—have been designated as green hydrogen hubs, facilitating export opportunities.
Global Implications and Future Outlook
Regional Leadership
The India-Japan hydrogen partnership extends beyond bilateral benefits to regional influence. Through initiatives like the Asia Zero Emissions Community (AZEC), Japan aims to support Asian countries in achieving carbon neutrality using hydrogen technologies developed through the India partnership. This creates a multiplier effect across Southeast Asia and other developing economies.
Climate Impact
The partnership's potential climate impact is substantial. India's National Green Hydrogen Mission targets abatement of 50 million tonnes of annual greenhouse gas emissions by 2030. Combined with Japan's domestic decarbonization efforts and technology export to third countries, this collaboration could contribute significantly to global emission reductions.
Technology Transfer and Innovation
The partnership is fostering genuine technology co-development rather than simple transfer. Indian innovations in low-cost renewable energy integration are being combined with Japanese precision engineering to create hybrid solutions optimized for tropical and subtropical conditions. This co-innovation model is being studied by other countries seeking sustainable energy partnerships.
Strategic Recommendations and Future Directions
Policy Harmonization
Continued success requires harmonizing standards, certifications, and regulations between India and Japan. The development of mutual recognition frameworks for green hydrogen certification will facilitate trade and investment flows. Both countries should work toward standardizing technical specifications for hydrogen production, storage, and transportation equipment.
Financial Mechanisms
Innovative financing mechanisms, including blended finance, green bonds, and risk-sharing instruments, will accelerate project implementation. The Joint Crediting Mechanism under Article 6.2 of the Paris Agreement provides a framework for carbon credit trading that can improve project economics.
Talent Development
Human resource development remains critical for scaling hydrogen technologies. Exchange programs bringing Indian engineers to Japanese facilities and Japanese experts to Indian projects are building the skilled workforce necessary for industry growth. The target of exchanging 500,000 personnel over five years between the countries will support this objective.
Conclusion
The India-Japan green hydrogen partnership represents a new paradigm in energy diplomacy—one that combines complementary national strengths, shared climate commitments, and mutual economic interests. Japan's technological expertise and India's production potential create synergies that extend far beyond simple buyer-seller relationships to genuine co-innovation and co-development.
As India works toward its net-zero target by 2070 and Japan aims for carbon neutrality by 2050, their hydrogen collaboration provides a practical pathway for achieving these ambitious goals while demonstrating how international partnerships can accelerate global clean energy transitions. The success of this partnership will likely influence similar collaborations across Asia and beyond, making it a critical test case for climate diplomacy in the 21st century.
With projected investments exceeding $150 billion over the next decade, technological innovations reducing costs by 40%, and potential emission reductions of over 100 million tonnes annually, the India-Japan green hydrogen partnership is not just powering India's net-zero journey—it's pioneering a model for how nations can collaborate to build a sustainable energy future for the world.
The authors Karthikeyan.J, Vinothagan.S are
1Research Scholars at, Department of Vegetable Science, Horticultural College and Research Institute, Tamil Nadu Agricultural University, Coimbator