The article discusses the immense advantages of green hydrogen in sectors such as transport and steel, despite challenges related to high costs. A report by SBI CAPS highlights that emerging hydrogen applications in various sectors remain underdeveloped due to cost premia relative to incumbent solutions and the emissions profile of grey hydrogen production. The National Green Hydrogen Mission in India, launched in 2023, targets a production of 5 million tonnes per annum by 2030 with an allocated budget of ₹19,744 crore. The article also mentions the introduction of Strategic Interventions for Green Hydrogen Transition (SIGHT), a supply-side incentive program to support domestic electrolyser manufacturing and green hydrogen production. Key success factors for green hydrogen projects are outlined, including operational scale, access to renewable energy sources, storage infrastructure, and cost-effective electrolysers. Despite the subsidy provided by SIGHT incentives, green hydrogen is currently priced at around ₹300 per kg compared to grey hydrogen at around ₹150, requiring substantial cost reductions for project viability. The article emphasizes the importance of vertical integration, access to low-cost financing, and securing demand through off-take agreements for the success of green hydrogen projects. India's hydrogen demand, primarily met by grey hydrogen, is around 9 million tonnes and is mainly used in sectors like fertilizers and refineries. The slow growth in hydrogen demand presents opportunities for import substitution, with the bulk of the demand expected to come from traditional sectors. The article underscores the potential for green hydrogen adoption to substitute natural gas imports, aligning with the objectives of the National Green Hydrogen Mission to drive sustainability and economic growth in India.