Can Green Hydrogen Help India Save Rs 22 Lakh Cr On Oil Imports? Nitin Gadkari Unveils Rs 500 Cr Pilot With Tata, Reliance & More

Toyota Kirloskar Motor (TKM) has signed a Memorandum of Understanding (MoU) with Bengaluru-based Ohmium International, a provider of Proton Exchange Membrane (PEM) hydrogen technology, to jointly develop integrated green hydrogen-based power solutions in India.

The partnership aims to support the country’s clean energy goals by advancing hydrogen as a low-emission fuel for mobility and industrial use.

Hydrogen Is Fuel of Future

The announcement was made at an event attended by Nitin Gadkari, Union Minister for Road Transport and Highways, Government of India. Speaking at the occasion, Gadkari welcomed the collaboration and described it as a “step toward the future”.

“This is a collaboration for the future,” the minister said. “Hydrogen is the fuel of the future, and our goal is to make India energy self-reliant while reducing pollution.”

Gadkari arrived at the event in a Toyota Mirai, a hydrogen-powered fuel cell vehicle, and expressed his support for green hydrogen technology. He noted that India's automobile industry, valued at Rs 22 lakh crore, is currently the third largest in the world, and he expressed confidence that it could become the largest in the next five years due to innovation in alternative fuels.

“I am sure that within five years, 100%, we will try to get number one in the world as an automobile industry,” he said, “because of the way our industry is working and taking on innovations, especially in biofuels and alternative energy.”

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A Push for Self-Reliance in Energy

Gadkari also highlighted the economic and environmental challenges posed by India’s dependence on oil imports.

“India is the third-largest oil consumer and importer. We import 87% of our oil, which costs around Rs 22 lakh crore annually,” he said. “Energy security is a major concern, both from an economic and environmental perspective.”

The minister reiterated the government’s commitment to promoting alternative fuels, including ethanol and isobutanol. He mentioned that a notification has been issued to allow the use of 100% ethanol in flex engines, and research is underway to blend 10% isobutanol into diesel. His ministry is also examining the feasibility of running construction equipment on 100% isobutanol.

Isobutanol is a biofuel made from ethanol using fermentation processes. Compared to ethanol, it has a higher energy density and is less corrosive.

“Our policy is simple: import substitute, cost-effective, pollution-free, and indigenous,” he stated.

Government-Backed Hydrogen Trials

Gadkari detailed the government’s plans for hydrogen fuel trials, supported by a Rs 500 crore budget allocation. The pilot project involves 27 vehicles operating across 10 routes, with participation from major companies such as Tata Motors, Ashok Leyland, Volvo, Reliance, IOCL, HPCL, BPCL, Anert, and NTPC.

Nine hydrogen refuelling stations are being set up, and technical specifications for these have already been finalised. Trials are expected to run for two years. The planned hydrogen corridors include routes like Delhi–Greater Noida–Agra, Ahmedabad–Vadodara–Surat, Bhubaneswar–Konark–Puri, Pune–Mumbai, and Kochi–Thiruvananthapuram, among others.

“Filling station infrastructure, storage, compression, and transport are critical areas. We need more research and viable economic models,” Gadkari said.

The minister also noted that Tata Motors has launched three hydrogen-powered trucks, including two fuel-cell vehicles and one internal combustion engine variant. He encouraged Toyota to explore similar conversions.

“I request that Toyota see if their IC engines can be converted to hydrogen. That could be a low-hanging fruit,” he added.

Exploring Cheaper Hydrogen Sources

Gadkari pointed out the need to make green hydrogen production cost-effective. He mentioned experiments with using segregated municipal waste, organic biomass, and bamboo as raw materials for hydrogen production.

“From bamboo and municipal waste, we can produce green hydrogen at cheaper rates,” he said. “17% of our land is wasteland. We’ve started a bamboo plantation mission, and even power companies are now buying bamboo at Rs 7 to Rs 8 per kg as an alternative to coal.”

He emphasised that affordability, availability of raw materials, and proven technologies would be essential for the long-term success of green hydrogen in India.

“The focus must be on technology that is economically viable and has guaranteed marketability,” he said.

Broader Support for Clean Energy Innovation

The minister also spoke about advancements in battery technology, such as sodium-ion, aluminium-ion, and alternative chemistries, which are being developed at Indian research institutions, including IITs.

“There is excellent work being done in battery research—India has huge potential. Our institutions and laboratories are developing promising solutions,” he said.

He assured industry stakeholders of the government’s full support for green initiatives.

“The government is with you. We will support you,” Gadkari said. “This initiative is not just about business; it is about reducing pollution and building a sustainable future.”

Industry Response

Speaking on behalf of Ohmium, Arne Ballantine, CEO and Co-founder, thanked the Indian government and industry partners for their support and said the partnership with Toyota marks a significant step in building a green hydrogen ecosystem in India.

“It’s an honour to contribute to India’s green energy ambitions. This partnership with Toyota represents a major milestone in our shared mission to develop clean and scalable hydrogen solutions,” Ballantine said.

“We have 17% wasteland in India. With biotechnology, we can grow bamboo on this land and use it as a raw material to produce hydrogen,” he said. He added that NTPC and power companies are already procuring bamboo as an alternative to coal, paying Rs 7–8 per kg.

“From bamboo, too, we can make hydrogen—and at a much lower cost. But we need proven technologies, economic viability, and reliable raw materials,” he explained.

Backing Innovation Across Energy Storage

The minister also touched on India’s progress in battery research, noting that local researchers and IITs are doing excellent work on lithium-ion, sodium-ion, aluminium-ion, and other battery chemistries.

“India has huge potential in energy storage solutions. Our institutions are developing cost-effective alternatives that can power the next generation of mobility,” Gadkari added.

Strong Government Support for Industry

Reassuring industry leaders, the minister affirmed that the government stands firmly with innovators in clean energy. “We are with you. We will support you,” he said, addressing stakeholders from Toyota, Ohmium, and the auto and energy sectors.

“This is not only a good business move, but it’s also a powerful step toward reducing pollution and achieving our sustainability goals,” Gadkari said.

Toyota’s Commitment to a Hydrogen Economy

Toyota, a global leader in fuel cell technology, sees this MoU with Ohmium as part of its broader effort to develop a hydrogen ecosystem in India. The company is actively working to deploy green hydrogen across both mobility and stationary power applications.

Ohmium CEO and Co-founder Arne Ballantine, who also spoke at the event, called the partnership “a historic moment” and expressed gratitude for the opportunity to contribute to India's clean energy future.