Hydrogen trucking for India: economics, opportunities, and way forward

This policy brief by RMI evaluates the techno-economic potential of hydrogen trucking in India, comparing fuel cell electric trucks (FCETs) and hydrogen internal combustion engine (ICE) trucks against diesel, battery electric (BET), and LNG alternatives. The analysis finds that while FCETs are projected to be more cost-competitive than diesel for long-haul, heavy-duty applications by 2040, they currently face high total cost of ownership (TCO) due to expensive hydrogen fuel, infrastructure, and taxation. The document recommends a coordinated roadmap involving policy incentives, strategic infrastructure planning, and tailored financial solutions to enable hydrogen to complement electrification in decarbonizing India's freight sector.

• Fuel cell electric trucks (FCETs) are projected to become more cost-competitive than diesel trucks by 2040, particularly for 55-ton long-haul heavy-duty applications, which show the largest potential cost savings.
• FCETs are unlikely to reach cost parity with battery electric trucks (BETs) without significant reductions in hydrogen fuel costs. While FCETs have lower purchase prices because they avoid expensive large battery packs, their operating costs are significantly higher.
• The high cost of hydrogen is driven by three primary factors: production costs (approximately 40% of the breakeven price), refueling station costs, and an 18% goods and services tax (GST). To achieve cost parity with BETs by 2030, hydrogen prices would need to drop to between INR300/kg and INR400/kg.
• Operational advantages of FCETs over BETs include significantly shorter refueling times and higher payload capacity, as BETs suffer from a payload penalty due to the weight of large battery packs.
• LNG trucks currently offer the lowest TCO among analyzed technologies due to lower fuel costs, but they are not a net-zero solution, reducing lifecycle CO2 emissions by only 5%–10% compared to diesel. This creates a risk of 'technology lock-in' that could delay the adoption of zero-emission trucks.
• On-site solar hydrogen production is more cost-effective than centralized, grid-based production due to lower electricity costs and the avoidance of expensive transport costs associated with dispersed refueling stations.
• The Indian government has already committed INR208 crore (US$23 million) under the National Green H2 mission to support five pilot projects involving 37 buses and trucks, with funds to be dispersed over 18–24 months.

APA

RMI (2026). Hydrogen trucking for India: economics, opportunities, and way forward. https://rmi.org/resources/hydrogen-trucking-for-india-economics-opportunities-and-way-forward/

Chicago

RMI. Hydrogen trucking for India: economics, opportunities, and way forward. 2026. https://rmi.org/resources/hydrogen-trucking-for-india-economics-opportunities-and-way-forward/.

Wikipedia

{{cite report |author=RMI |title=Hydrogen trucking for India: economics, opportunities, and way forward |date=6 February 2026 |url=https://rmi.org/resources/hydrogen-trucking-for-india-economics-opportunities-and-way-forward/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2026hydrogen, author = {{RMI}}, title = {{Hydrogen trucking for India: economics, opportunities, and way forward}}, institution = {RMI}, year = {2026}, month = feb, url = {https://rmi.org/resources/hydrogen-trucking-for-india-economics-opportunities-and-way-forward/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }