1. Introduction

Hydrogen has become an important component of national energy-transition strategies because it can potentially decarbonise sectors that are difficult to electrify directly, including steel, fertilisers, refining, shipping, heavy transport and certain industrial processes. A National Hydrogen Strategy is therefore more than an industrial-policy document. It is a framework through which the State determines how hydrogen will be produced, certified, transported, stored, traded, consumed and regulated.

India's National Green Hydrogen Mission (NGHM), approved in January 2023, seeks to make India a global hub for production, use and export of green hydrogen and its derivatives. The Mission has an initial outlay of ₹19,744 crore and includes production incentives, electrolyser manufacturing, pilot projects, hydrogen hubs, research, infrastructure, standards and skills. (Ministry of New and Renewable Energy)

The legal governance of hydrogen consequently involves energy law, environmental law, electricity regulation, water law, land-use regulation, industrial safety, transport law, competition law, taxation, international trade and administrative law.

2. Meaning of a National Hydrogen Strategy

A National Hydrogen Strategy is a governmental framework establishing:

Production targets

Definition and certification of hydrogen

Renewable-energy requirements

Demand-creation mechanisms

Infrastructure development

Financial incentives

Safety standards

Environmental safeguards

Research and technological development

Domestic and international markets

Institutional responsibilities

Monitoring and enforcement mechanisms

Hydrogen may be produced through different pathways, including:

fossil-fuel-based hydrogen;

hydrogen with carbon capture;

renewable-energy-based electrolysis;

biomass-based pathways; and

emerging technological pathways.

The legal system must therefore determine which categories qualify for government incentives or "green" certification.

3. India's National Green Hydrogen Mission

India's NGHM provides an important example of national hydrogen governance.

Its stated objective is to establish India as a global hub for production, utilisation and export of green hydrogen and its derivatives. The Mission also seeks to reduce fossil-fuel dependence and promote technological and market leadership. (Ministry of New and Renewable Energy)

The Mission's principal components include:

A. Strategic Interventions for Green Hydrogen Transition

The SIGHT Programme provides financial incentives for:

electrolyser manufacturing; and

production of green hydrogen.

The initial Mission framework allocated ₹17,490 crore to SIGHT. (Ministry of New and Renewable Energy)

B. Hydrogen Hubs

The Government envisages concentrated hydrogen-production and utilisation areas where infrastructure can be shared.

Recent MNRE guidelines also provide for Hydrogen Valley Innovation Clusters and Green Hydrogen Hubs. (Ministry of New and Renewable Energy)

C. Sectoral Pilots

Hydrogen deployment is being encouraged in sectors such as:

steel;

shipping;

mobility;

decentralised energy;

storage; and

other industrial applications.

The Mission includes specific pilot-project schemes for steel and shipping. (Ministry of New and Renewable Energy)

D. Standards and Regulatory Framework

Hydrogen requires specialised standards because its physical characteristics create different risks from conventional fuels.

The Mission therefore provides funding for testing facilities, infrastructure and institutional support for development of standards and regulatory frameworks. (Ministry of New and Renewable Energy)

4. Legal Definition and Certification of Green Hydrogen

One of the most important governance questions is:

When can hydrogen legally be called "green hydrogen"?

Certification matters because it determines eligibility for:

subsidies;

procurement;

tax benefits;

export markets;

renewable-energy credits;

corporate decarbonisation claims; and

international recognition.

India's Mission expressly contemplates a certification framework for green hydrogen and its derivatives. (Ministry of New and Renewable Energy)

The European Union provides a useful comparative example. Its framework establishes detailed requirements concerning renewable electricity, additionality, temporal and geographical correlation and lifecycle greenhouse-gas emissions. (Energy)

Thus, hydrogen governance is increasingly moving from a simple production-based classification to a lifecycle-based regulatory model.

5. Renewable Electricity Governance

Green hydrogen production through electrolysis requires substantial electricity.

Consequently, hydrogen policy interacts directly with electricity law concerning:

grid connectivity;

open access;

renewable-energy procurement;

transmission charges;

electricity banking;

power purchase agreements;

captive generation;

scheduling and dispatch; and

renewable-energy certification.

India's NGHM specifically contemplates measures such as renewable-energy banking, open access and connectivity and transmission-charge arrangements for renewable electricity used for green hydrogen. (Ministry of New and Renewable Energy)

This demonstrates that hydrogen regulation cannot operate as an isolated sector.

6. Water Governance

Electrolysis requires water. Large-scale hydrogen development can therefore create legal questions concerning:

water allocation;

groundwater extraction;

desalination;

wastewater treatment;

competing municipal and agricultural demands;

ecological flows; and

environmental permissions.

A hydrogen strategy that ignores water governance may shift environmental pressure from the carbon sector to water resources.

Accordingly, environmental assessment should examine the complete resource footprint of hydrogen production.

7. Environmental Impact Assessment

Hydrogen projects may involve:

large renewable-energy installations;

electrolysers;

ammonia or methanol facilities;

pipelines;

storage tanks;

ports;

desalination plants;

hazardous-material handling; and

associated transmission infrastructure.

Environmental-impact assessment should therefore consider:

air emissions;

water consumption;

land use;

biodiversity;

chemical risks;

cumulative impacts;

lifecycle emissions; and

community impacts.

This principle is particularly important where governments attempt to accelerate hydrogen projects through simplified approval procedures.

8. Case Law: Earthlife Africa Johannesburg v Minister of Environmental Affairs (2017)

The South African case Earthlife Africa Johannesburg v Minister of Environmental Affairs is highly relevant to hydrogen governance even though it concerned a proposed coal-fired power station rather than hydrogen.

The High Court held that climate-change considerations had to be properly considered before environmental authorisation. The case emphasised that environmental decision-making cannot treat climate impacts as an issue to be postponed until after approval. (SAFLII)

Relevance to hydrogen

The principle can apply to hydrogen projects in the opposite direction.

A project described as "green" should not automatically receive environmental approval merely because it is associated with decarbonisation. Authorities may need to examine:

actual lifecycle emissions;

electricity sources;

water impacts;

infrastructure impacts;

transport emissions;

ammonia or derivative production; and

cumulative environmental effects.

Therefore, the environmental character of a hydrogen project must be demonstrated rather than assumed from its label.

9. Case Law: Fuel Retailers Association of Southern Africa v Director-General Environmental Management (2007)

The South African Constitutional Court in Fuel Retailers Association of Southern Africa v Director-General Environmental Management considered the relationship between environmental protection and socio-economic development.

The Court emphasised that environmental decision-making must consider social, economic and environmental consequences together. NEMA's framework requires relevant environmental and socio-economic impacts to be identified, assessed and considered. (SAFLII)

Application to hydrogen

Hydrogen projects may produce substantial economic benefits through:

employment;

industrial development;

exports;

energy security;

technological innovation; and

reduced fossil-fuel dependence.

But they can also create:

land-use conflicts;

water stress;

safety risks;

environmental burdens;

infrastructure costs; and

unequal distribution of benefits.

Consequently, hydrogen authorisation should follow an integrated sustainable-development assessment, rather than considering only investment or emissions-reduction benefits.

10. Public Participation and Procedural Legitimacy

Large hydrogen projects can affect local communities, workers, landowners, municipalities and indigenous or traditional communities.

Legal governance should therefore provide:

public notice;

access to environmental information;

consultation;

opportunity to submit objections;

reasoned administrative decisions; and

judicial review.

This is particularly important because hydrogen projects are frequently located in industrial zones, coastal areas or regions with substantial renewable-energy potential.

Procedural legitimacy helps prevent the perception that hydrogen development is simply an industrial project imposed from above.

11. Hydrogen Safety Regulation

Hydrogen has distinctive safety characteristics because of:

high flammability;

low ignition energy;

wide flammability range;

leakage potential;

high-pressure storage requirements; and

cryogenic considerations for liquefied hydrogen.

Legal governance should therefore regulate:

Production

Electrolyser safety, electrical systems and chemical handling.

Storage

Pressure vessels, tanks and separation distances.

Transport

Pipelines, road transport, ports and maritime transport.

Refuelling

Hydrogen stations and vehicle safety.

Industrial use

Ammonia, methanol, steel and refinery applications.

A national strategy without enforceable safety standards would leave significant regulatory uncertainty.

12. Infrastructure and Third-Party Access

A mature hydrogen economy requires infrastructure such as:

pipelines;

storage facilities;

ports;

hydrogen terminals;

refuelling stations;

renewable-energy facilities;

electricity transmission;

ammonia facilities; and

export infrastructure.

Legal questions include:

Who owns the infrastructure?

Can competitors access pipelines?

Are tariffs regulated?

Can infrastructure be monopolised?

Who bears expansion costs?

What technical standards apply?

This creates a potential role for energy regulators and competition authorities.

13. Market Regulation and Competition

As hydrogen markets develop, governments may need rules dealing with:

market concentration;

exclusive supply agreements;

infrastructure access;

discriminatory network practices;

subsidies;

mergers;

dominant market positions; and

procurement manipulation.

Hydrogen policy should therefore avoid creating a publicly subsidised market in which infrastructure becomes inaccessible to smaller participants.

Competitive procurement and transparent subsidy allocation are particularly important.

14. Financial Incentives and State Aid

Hydrogen production is initially expensive in many applications.

Governments may therefore provide:

capital subsidies;

production incentives;

contracts for difference;

tax incentives;

viability-gap funding;

concessional finance;

public procurement; and

infrastructure support.

India's SIGHT programme represents this approach, providing financial incentives for electrolyser manufacturing and hydrogen production. (Ministry of New and Renewable Energy)

However, subsidy governance should incorporate:

transparent eligibility criteria;

competitive selection;

performance requirements;

monitoring;

clawback mechanisms; and

safeguards against overcompensation.

15. Export and International Trade Governance

Hydrogen is increasingly connected with international trade.

Potential export products include:

hydrogen;

green ammonia;

methanol;

sustainable fuels; and

hydrogen-derived products.

Export governance involves:

customs classification;

certification;

origin rules;

emissions accounting;

maritime transport;

port regulation;

international standards; and

recognition of foreign certificates.

The EU framework illustrates the importance of internationally recognised lifecycle and renewable-hydrogen standards. Its hydrogen regime includes binding renewable-hydrogen targets and detailed delegated rules for renewable hydrogen. (Energy)

16. South African Comparative Model

South Africa provides another important comparative model.

Its Hydrogen Society Roadmap was designed as a national coordinating framework integrating hydrogen technologies across different economic sectors. The roadmap builds upon the country's earlier Hydrogen South Africa Strategy and seeks to move from research and development towards manufacturing and commercialisation. (South African Government)

The South African approach demonstrates that hydrogen governance can combine:

energy policy;

industrial policy;

scientific research;

economic development;

export strategy; and

environmental governance.

This is particularly relevant to developing countries seeking to use hydrogen policy for industrial transformation.

17. Institutional Governance

A national hydrogen strategy requires clear allocation of governmental responsibilities.

In India's model:

MNRE has overall coordination and implementation responsibilities;

the Ministry of Power is relevant to renewable-electricity delivery;

the Ministry of Petroleum and Natural Gas is relevant to hydrogen uptake in refining and city-gas systems;

the Ministry of Chemicals and Fertilizers has responsibilities concerning green ammonia and fertiliser applications.

The Mission is overseen through an Empowered Group, an Advisory Group and a Mission Secretariat. (Ministry of New and Renewable Energy)

Such institutional coordination is necessary because hydrogen cuts across conventional administrative boundaries.

18. Administrative Law and Judicial Review

Hydrogen decisions involve significant administrative discretion.

Government decisions may concern:

licences;

environmental approvals;

subsidies;

land allocation;

electricity connectivity;

infrastructure access;

certification;

procurement; and

safety approvals.

These decisions must generally satisfy principles of:

legality;

procedural fairness;

reasonableness;

transparency;

non-arbitrariness;

relevant-consideration requirements; and

adequate reasons.

The environmental jurisprudence in Fuel Retailers demonstrates how administrative decisions affecting energy infrastructure can be examined through environmental and constitutional principles. (SAFLII)

19. Intergenerational Equity and Public Trust

Hydrogen strategies should also incorporate broader environmental-law principles such as:

Sustainable development

Economic development should be integrated with environmental protection.

Precautionary principle

Regulators should account for serious environmental or safety risks even where scientific knowledge is incomplete.

Intergenerational equity

Present hydrogen development should not impose unreasonable environmental costs on future generations.

Public trust

Natural resources such as land, water and environmental assets should not be managed solely for short-term commercial gain.

These principles become particularly important where hydrogen development requires large quantities of renewable electricity and water.

20. Major Legal Challenges

The principal legal challenges for national hydrogen governance include:

Defining green hydrogen

Developing credible certification

Preventing greenwashing

Regulating water consumption

Ensuring hydrogen safety

Creating pipeline-access rules

Coordinating multiple ministries

Balancing subsidies and competition

Integrating hydrogen into electricity regulation

Ensuring meaningful environmental assessment

Protecting affected communities

Creating internationally compatible certification

Regulating hydrogen derivatives such as ammonia

Managing cross-border trade

Providing stable investment rules

21. Conclusion

A National Hydrogen Strategy should ultimately be understood as a multi-sector legal-governance framework rather than merely an energy-policy programme.

India's National Green Hydrogen Mission demonstrates this integrated approach through incentives, electrolyser manufacturing, hydrogen hubs, pilot projects, infrastructure, research, certification and regulatory-standard development. (Ministry of New and Renewable Energy)

The comparative experience of the EU demonstrates the importance of precise definitions, lifecycle emissions accounting and certification, while South Africa illustrates how hydrogen strategy can be connected with industrialisation, research and economic development. (Energy)

The cases Earthlife Africa and Fuel Retailers Association further demonstrate important legal principles for hydrogen governance: environmental consequences should be considered before major project decisions, and environmental, social and economic considerations should be integrated rather than treated as completely separate objectives. (SAFLII)

Accordingly, effective hydrogen governance requires clear statutory authority, reliable certification, environmental assessment, safety regulation, transparent incentives, competitive infrastructure access, public participation and coordinated institutional oversight. The central legal challenge is to create a framework that enables rapid hydrogen deployment while ensuring that "green" development remains environmentally credible, socially legitimate and legally accountable.