Hydrogen Transport And Storage Legal Frameworks .

1. Introduction

Hydrogen is increasingly being treated as an important energy carrier for decarbonising sectors such as steel, chemicals, shipping, heavy transport and power. However, producing hydrogen is only one part of the hydrogen economy. A functioning hydrogen market also requires safe transportation, intermediate storage, large-scale storage, terminals, pipelines, road and rail transport, ports and distribution infrastructure.

The legal framework for hydrogen transport and storage therefore has to address several overlapping questions:

Who may construct and operate hydrogen pipelines?

What technical and safety standards apply?

How are hydrogen storage facilities licensed?

Who bears liability for leakage, explosion, fire or environmental damage?

How are pipelines and storage sites approved?

How is third-party access regulated?

What rules apply to compressed and liquefied hydrogen?

Can existing natural-gas infrastructure be converted for hydrogen?

What rules govern hydrogen transport by road, rail, sea and ports?

How are cross-border hydrogen networks regulated?

In India, the framework is still developing. The National Green Hydrogen Mission (NGHM) expressly recognises pipelines, tankers, intermediate storage facilities and last-mile distribution as part of the hydrogen supply chain. It also calls for development and harmonisation of regulations and standards. (Ministry of New and Renewable Energy)

Internationally, the EU has moved further by creating a dedicated legal framework for hydrogen networks and storage under Directive (EU) 2024/1788 and Regulation (EU) 2024/1789. (EUR-Lex)

2. Meaning of Hydrogen Transport and Storage

Hydrogen transport means the movement of hydrogen from production facilities to storage facilities, industrial users, refuelling stations, ports or export terminals.

It may occur through:

Dedicated hydrogen pipelines

Repurposed natural-gas pipelines

Compressed hydrogen tube trailers

Liquid hydrogen tankers

Rail transport

Maritime transport

Hydrogen carriers, such as ammonia or liquid organic hydrogen carriers

Distribution networks and refuelling infrastructure

Storage may occur as:

compressed gaseous hydrogen;

liquid hydrogen;

underground hydrogen storage;

salt caverns;

tanks and pressure vessels;

pipeline linepack;

storage associated with hydrogen terminals.

The EU's 2024 Hydrogen and Decarbonised Gas Market Directive specifically defines a hydrogen system as infrastructure including hydrogen networks, storage and terminals, and separately recognises hydrogen storage facilities and hydrogen linepack. (EUR-Lex)

3. Objectives of the Legal Framework

A comprehensive hydrogen transport and storage framework should pursue five major objectives.

A. Safety

Hydrogen has particular physical characteristics, including high diffusivity, low ignition energy and a wide flammability range. The legal framework must therefore regulate:

pressure;

leakage;

ignition sources;

ventilation;

separation distances;

emergency shutdown systems;

pressure relief;

inspection;

maintenance;

fire protection.

B. Infrastructure reliability

Transport infrastructure must operate continuously and safely. Regulations should address:

pipeline integrity;

corrosion and hydrogen embrittlement;

pressure management;

quality specifications;

metering;

monitoring;

maintenance.

India's National Green Hydrogen Mission standards portal already identifies standards dealing with process piping, gas transmission and distribution systems, hydrogen vent systems and transportable hydrogen cylinders. (National Green Mission)

C. Environmental protection

Hydrogen infrastructure can affect:

land;

water resources;

biodiversity;

agricultural land;

coastal areas;

communities;

protected areas.

Environmental impact assessment and pollution-control requirements may therefore become relevant depending on the project and applicable legislation.

D. Market access

Hydrogen infrastructure can become a natural monopoly where pipeline or storage capacity is limited. Consequently, rules may be required concerning:

third-party access;

tariffs;

capacity allocation;

congestion;

non-discrimination;

connection;

refusal of access.

The EU framework expressly regulates third-party access to hydrogen networks and storage. (EUR-Lex)

E. Liability and compensation

A hydrogen accident may cause:

personal injury;

death;

property damage;

fire;

environmental damage;

business interruption.

Consequently, legislation should establish clear rules concerning:

operator liability;

insurance;

compensation;

emergency response;

remediation;

financial security.

4. Indian Legal Framework

India does not yet have one comprehensive Hydrogen Transport and Storage Act. Instead, regulation currently operates through a combination of hydrogen policy, technical standards, environmental legislation, industrial-safety requirements, transport regulations and sector-specific approvals.

The National Green Hydrogen Mission is the principal policy framework.

The Mission specifically provides for supply chains involving pipelines, tankers, intermediate storage facilities and last-mile distribution networks. (Ministry of New and Renewable Energy)

The government's hydrogen standards portal also categorises standards under storage and transportation, demonstrating that the regulatory architecture is being constructed through technical standards as well as conventional legislation. (National Green Mission)

5. National Green Hydrogen Mission

The National Green Hydrogen Mission was launched to establish India as a major producer and user of green hydrogen.

Its infrastructure approach recognises that hydrogen development requires more than production facilities. The Mission therefore contemplates:

hydrogen transport;

storage;

distribution;

hydrogen hubs;

export infrastructure;

refuelling infrastructure;

development of standards;

regulatory harmonisation.

The Mission also provides support for hydrogen hubs and infrastructure development. (Ministry of New and Renewable Energy)

The Government has further published guidelines relating to hydrogen hubs and funding for testing facilities, infrastructure and institutional support for standards and regulatory development. (Ministry of New and Renewable Energy)

6. Pipeline Regulation

Dedicated hydrogen pipelines are likely to become one of the most important forms of hydrogen transportation.

A pipeline legal framework should regulate:

6.1 Authorisation

Operators should require appropriate approval to:

construct;

operate;

modify;

expand;

decommission pipelines.

6.2 Route approval

Pipeline construction may require consideration of:

land acquisition;

right of way;

forests;

environmental restrictions;

roads;

railways;

rivers;

urban areas;

protected areas.

6.3 Technical integrity

Hydrogen can interact with pipeline materials and may contribute to hydrogen embrittlement. Consequently, material compatibility becomes a major regulatory issue.

India's hydrogen standards database includes ISO 15330, dealing with testing for hydrogen embrittlement, as well as pipeline-related standards such as API/ANSI 5L. (National Green Mission)

6.4 Monitoring

Pipeline operators may need:

leak detection;

pressure monitoring;

automatic isolation;

emergency shutdown;

inspection;

integrity management.

7. Repurposing Natural-Gas Pipelines

An important legal issue is whether existing natural-gas infrastructure can transport hydrogen or hydrogen blends.

This creates questions concerning:

pipeline material compatibility;

pressure;

hydrogen concentration;

appliance compatibility;

metering;

gas quality;

contractual specifications;

safety distances;

liability.

A legal system should not automatically assume that a pipeline authorised for natural gas is automatically safe for pure hydrogen.

A conversion or compatibility assessment may therefore be required before repurposing.

8. Hydrogen Storage Regulation

Hydrogen storage can be divided into several categories.

A. Compressed gaseous hydrogen

Usually stored in:

cylinders;

pressure vessels;

tube trailers;

stationary tanks.

B. Liquid hydrogen

Requires cryogenic storage because hydrogen becomes liquid at extremely low temperatures.

C. Underground hydrogen storage

Potential technologies include:

salt caverns;

geological formations;

other subsurface structures.

D. Linepack

Hydrogen can also be temporarily stored within pipelines through pressure management.

The EU framework expressly recognises hydrogen linepack as a form of storage associated with hydrogen networks. (EUR-Lex)

9. Pressure-Vessel and Cylinder Regulation

Compressed hydrogen presents significant pressure-related risks.

The legal framework should therefore address:

vessel design;

manufacturing;

testing;

certification;

periodic inspection;

pressure relief;

filling;

transport;

damage assessment;

retirement.

India's NGHM standards catalogue includes standards relating to refillable seamless gas cylinders, pressure-relief devices and transportable hydrogen cylinders. (National Green Mission)

This illustrates an important principle: hydrogen regulation cannot depend solely upon general energy legislation; specialised technical standards are necessary.

10. Hydrogen Storage at Ports and Terminals

Hydrogen exports may involve:

liquid hydrogen;

ammonia;

other hydrogen carriers.

Port facilities therefore require special rules for:

loading;

unloading;

temporary storage;

pipelines;

tank farms;

emergency response;

vessel compatibility;

hazardous-area classification.

India has already contemplated port-related storage infrastructure for green ammonia. Government policy has allowed green hydrogen/green ammonia manufacturers to establish bunkers near ports for export and shipping uses, subject to the applicable arrangements of port authorities. (Press Information Bureau)

11. Transport by Road

Road transportation is particularly important during the early development of hydrogen markets because dedicated pipeline infrastructure may not yet exist.

The legal framework should address:

certified cylinders;

tube trailers;

maximum pressure;

vehicle specifications;

driver training;

route restrictions;

emergency procedures;

accident reporting;

loading and unloading;

parking and storage.

Hydrogen-specific vehicle and component standards are already being incorporated into India's standards framework. For example, the NGHM portal identifies standards concerning compressed gaseous hydrogen vehicle fuel systems and associated safety requirements. (National Green Mission)

12. Safety Regulation

Safety is arguably the central component of hydrogen transport and storage law.

A regulatory framework should cover the complete lifecycle:

Design → Construction → Commissioning → Operation → Inspection → Maintenance → Emergency response → Decommissioning

Important regulatory requirements include:

12.1 Hazardous-area classification

Areas where hydrogen may accumulate must be appropriately classified and protected against ignition.

12.2 Ventilation

Hydrogen leakage requires effective ventilation because hydrogen can accumulate in enclosed spaces.

12.3 Pressure relief

Storage systems should have appropriate pressure-relief mechanisms.

12.4 Leak detection

Sensors and automatic shutdown mechanisms can reduce accident risks.

12.5 Emergency response

Operators should maintain:

emergency plans;

fire response systems;

evacuation procedures;

communication systems;

coordination with local authorities.

India's standards catalogue includes CGA G-5.5, which provides design guidance for hydrogen vent systems. (National Green Mission)

13. Environmental Approval

Hydrogen infrastructure can require environmental permissions depending upon the project.

Relevant legal considerations may include:

Environment (Protection) Act, 1986;

environmental impact assessment requirements;

Water Act, 1974;

Air Act, 1981;

forest legislation;

wildlife legislation;

coastal regulation;

local planning law.

The legal principle is that clean-energy status does not automatically eliminate environmental obligations.

A hydrogen pipeline or storage facility can still have significant land-use and environmental impacts.

14. Land Acquisition and Right of Way

Large hydrogen pipeline networks require extensive rights of way.

Legal questions include:

compulsory acquisition;

easements;

compensation;

restoration of land;

access to private property;

crossing roads and railways;

crossing rivers;

agricultural impacts.

The legal framework must balance infrastructure development with property rights and public interest.

15. Third-Party Access

Third-party access becomes important once hydrogen networks become common carriers.

Suppose Operator A owns a pipeline while Producers B and C want to transport hydrogen through it.

The law must determine:

whether access is mandatory;

how capacity is allocated;

what tariff applies;

whether connected parties receive priority;

how congestion is managed;

when access may be refused.

The EU Hydrogen and Decarbonised Gas Market Directive establishes common rules concerning hydrogen network access and storage. For storage, it provides for regulated third-party access, while allowing Member States a temporary negotiated-access approach until 31 December 2032 under specified conditions. (EUR-Lex)

16. Hydrogen Storage as a Regulated Infrastructure Service

The EU approach is significant because it treats hydrogen storage not merely as a private industrial activity but, in relevant circumstances, as part of an energy-market infrastructure system.

Article 37 requires regulated third-party access to hydrogen storage, with published tariffs and non-discriminatory access, subject to the transitional option for negotiated access. (EUR-Lex)

This approach could become relevant to future Indian hydrogen-market design.

17. Cross-Border Hydrogen Transport

International hydrogen trade raises additional legal questions:

customs;

certification;

hydrogen quality;

pipeline interconnection;

port regulations;

maritime safety;

recognition of certificates;

guarantees of origin;

environmental standards;

liability across jurisdictions.

Cross-border infrastructure requires interoperability between national technical and regulatory systems.

The EU's 2024 framework expressly seeks to establish a Union-wide interconnected hydrogen system. (EUR-Lex)

18. Liability for Hydrogen Accidents

Hydrogen transportation and storage create a strong need for a clear liability regime.

Potentially liable parties may include:

producer;

pipeline operator;

storage operator;

transport company;

terminal operator;

equipment manufacturer;

contractor;

negligent third party.

A modern legal regime should distinguish:

fault-based liability + strict/absolute liability + environmental liability + contractual liability.

19. Case Law: M.C. Mehta v. Union of India — Oleum Gas Leak Case

Citation

M.C. Mehta v. Union of India, (1987) 1 SCC 395; AIR 1987 SC 1086

This is one of the most important Indian cases for hydrogen transport and storage law by analogy.

The case arose from leakage of oleum gas from the Shriram industrial facility in Delhi.

The Supreme Court developed the principle of absolute liability for enterprises engaged in hazardous or inherently dangerous activities. The Court rejected the traditional exceptions associated with the rule in Rylands v. Fletcher. (Aashayein Judiciary)

Relevance to hydrogen

Hydrogen storage and transportation can involve inherently hazardous operations involving:

high pressure;

flammable gas;

cryogenic systems;

pipelines;

large-scale storage.

Therefore, if a hydrogen enterprise causes injury through an accident, the principles developed in M.C. Mehta can provide an important framework for analysing liability under Indian environmental law.

The case also emphasises that compensation should have a deterrent relationship to the size and capacity of the enterprise. (EduLaw Store)

20. Vellore Citizens Welfare Forum v. Union of India

Citation

Vellore Citizens Welfare Forum v. Union of India, (1996) 5 SCC 647

The Supreme Court recognised the precautionary principle and polluter-pays principle as part of Indian environmental law. (Indian Kanoon)

Relevance to hydrogen

The precautionary principle is particularly significant for emerging hydrogen infrastructure because regulators may face technological uncertainty regarding:

hydrogen embrittlement;

underground storage;

pipeline conversion;

leakage;

hydrogen blending;

new storage technologies.

The absence of complete scientific certainty does not necessarily justify postponing preventive regulatory measures.

Thus, regulators can require safety studies, monitoring and protective measures before permitting a new hydrogen facility.

21. A.P. Pollution Control Board v. M.V. Nayudu

Citation

A.P. Pollution Control Board v. Prof. M.V. Nayudu, (1999) 2 SCC 718

This case is important because it addressed environmental decision-making in situations involving scientific and technical uncertainty.

The Supreme Court's jurisprudence emphasised the importance of scientific expertise in environmental decision-making and developed the application of the precautionary principle. (Indian Kanoon)

Relevance to hydrogen

Hydrogen infrastructure is highly technical. Decisions about:

pipeline materials;

underground storage;

hydrogen leakage;

pressure;

environmental risks;

hydrogen blending

may require specialised scientific expertise.

Therefore, regulatory bodies should ideally use technically qualified expert mechanisms rather than treating hydrogen infrastructure as an ordinary industrial activity.

22. M.V. Nayudu and Hazardous-Substance Regulation

The earlier proceedings in the Nayudu litigation also illustrate that Indian law does not necessarily prohibit hazardous activities merely because they involve risk.

Instead, legislation can permit hazardous industrial activities subject to:

authorisation;

safeguards;

regulatory supervision;

emergency preparedness;

technical standards.

The Supreme Court's discussion of hazardous substances specifically recognised statutory systems involving authorisation and safeguards for handling hazardous materials. (Indian Kanoon)

This is highly relevant to hydrogen: the legal objective is generally controlled and safe operation rather than treating hydrogen itself as an inherently prohibited substance.

23. Constitutional Dimension

Hydrogen infrastructure regulation must also be understood against India's constitutional environmental framework.

Relevant provisions include:

Article 21

Judicial interpretation has connected the right to life with environmental protection.

Article 48A

The State has a constitutional responsibility to protect and improve the environment.

Article 51A(g)

Citizens have a fundamental duty concerning environmental protection.

Indian environmental jurisprudence has used these provisions to support principles such as precaution and polluter pays. (Indian Kanoon)

24. EU Hydrogen Transport and Storage Framework

The EU provides a useful comparative model.

Directive (EU) 2024/1788 establishes common rules concerning hydrogen transport, supply and storage. It also establishes rules concerning hydrogen network authorisation, market organisation and operation. (EUR-Lex)

The European Commission describes the 2024 hydrogen and gas decarbonisation package as introducing a dedicated regulatory framework for hydrogen infrastructure. (Energy)

Its key features include:

hydrogen network regulation;

hydrogen storage regulation;

hydrogen terminals;

third-party access;

non-discrimination;

tariffs;

authorisation procedures;

regulatory oversight;

cross-border infrastructure.

This represents a transition from a purely project-based approach to a market-wide hydrogen infrastructure regime.

25. Comparison: India and EU

IssueIndiaEU
Dedicated hydrogen infrastructure lawDevelopingDedicated framework established
Hydrogen pipelinesStandards and sectoral regulation developingSpecifically regulated
Hydrogen storageStandards and approvals developingSpecific third-party-access rules
SafetyMultiple technical standardsEU + national safety framework
Third-party accessDevelopingExpressly regulated
Hydrogen terminalsEmergingSpecifically recognised
Cross-border infrastructureDevelopingUnion-wide framework
Hydrogen qualityStandards developingDedicated regulatory framework
LiabilityGeneral environmental/industrial lawEU and national liability regimes
Technical standardsExtensive and developingHarmonised European standards plus national rules

India's official standards programme currently identifies a substantial body of hydrogen standards, while acknowledging that the regulatory architecture is still being developed. (National Green Mission)

26. Major Legal Challenges

26.1 Fragmentation

One of the biggest challenges is that hydrogen can fall simultaneously under:

energy law;

environmental law;

industrial safety law;

transport law;

petroleum and hazardous-substance regulation;

land law;

port law;

building and fire safety law.

A fragmented approval system can increase costs and regulatory uncertainty.

26.2 Absence of hydrogen-specific liability rules

Existing environmental liability principles are important, but dedicated rules concerning hydrogen accidents could improve certainty.

26.3 Pipeline conversion

Existing gas pipelines may require extensive technical assessment before hydrogen conversion.

26.4 Storage regulation

Large underground hydrogen storage raises novel legal issues concerning:

ownership of subsurface resources;

leakage;

geological integrity;

groundwater;

monitoring;

closure;

long-term liability.

26.5 Regulatory overlap

Multiple regulators may have jurisdiction over the same facility. A future hydrogen framework should establish clear institutional responsibilities.

27. Suggested Legal Architecture for India

A mature Indian hydrogen transport and storage framework could contain the following components:

Chapter I — Definitions

Define:

hydrogen;

green hydrogen;

low-carbon hydrogen;

hydrogen pipeline;

hydrogen storage facility;

hydrogen terminal;

hydrogen carrier;

hydrogen transport operator.

Chapter II — Licensing

Establish licences for:

pipeline construction;

pipeline operation;

storage;

transport;

terminals;

underground storage.

Chapter III — Technical Standards

Mandate standards relating to:

materials;

pressure;

cylinders;

pipelines;

compressors;

valves;

storage tanks;

leak detection.

Chapter IV — Safety

Establish:

separation distances;

emergency shutdown;

ventilation;

fire protection;

inspection;

emergency response.

Chapter V — Environmental Protection

Require appropriate:

environmental assessment;

monitoring;

pollution prevention;

ecological safeguards.

Chapter VI — Market Access

Regulate:

third-party access;

tariffs;

capacity allocation;

congestion;

connection;

refusal of access.

Chapter VII — Liability

Establish:

operator liability;

environmental liability;

compensation;

insurance;

financial security.

Chapter VIII — Cross-Border Infrastructure

Provide rules for:

international pipelines;

ports;

hydrogen carriers;

certification;

customs;

cross-border safety.

28. Conclusion

The legal framework for hydrogen transport and storage is evolving from a collection of general industrial, environmental, transport and technical regulations toward a specialised hydrogen infrastructure regime.

In India, the National Green Hydrogen Mission provides the principal policy foundation and explicitly recognises pipelines, tankers, intermediate storage and distribution infrastructure. The Government is simultaneously developing technical standards and approval mechanisms. (Ministry of New and Renewable Energy)

Indian environmental jurisprudence provides an important legal foundation even where hydrogen-specific case law is limited. M.C. Mehta v. Union of India establishes the principle of absolute liability for hazardous activities; Vellore Citizens Welfare Forum v. Union of India establishes the precautionary and polluter-pays principles; and A.P. Pollution Control Board v. M.V. Nayudu demonstrates the importance of scientific expertise and precaution in technically complex environmental decisions. (EduLaw Store)

The EU provides a more developed comparative model through Directive (EU) 2024/1788, which specifically regulates hydrogen networks, storage, terminals, authorisations and third-party access. (EUR-Lex)

Ultimately, a robust hydrogen transport and storage regime must integrate safety, environmental protection, infrastructure access, technical standards, liability, land rights and market regulation. The central legal challenge is to facilitate rapid hydrogen infrastructure development while ensuring that technological uncertainty does not compromise public safety or environmental protection.

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