India’s hydrogen demand is projected to grow at a compound annual growth rate (CAGR) of 3% to reach 8.8 million tons per annum (MTPA) by 2032, according to an India Energy Storage Alliance (IESA) report.
Green Hydrogen Announcements Outpace Project Maturity
While India has announced green hydrogen (GH2) projects with a combined capacity exceeding 9.2 MTPA, only a few have progressed to the Final Investment Decision (FID) stage or secured long-term offtake agreements—either domestically or internationally. In IESA’s baseline scenario, just 30% of the announced GH2 capacity is expected to be commissioned within the next decade. If this limited share becomes operational, electrolytic and bio-hydrogen could jointly fulfill about 31% of India’s hydrogen demand by 2032.
State-Level Concentration of Green Hydrogen Projects
The report underscores a significant regional concentration of GH2 projects. Four states account for a dominant 82% of total announced capacities:
*Odisha: 38%
*Gujarat: 26%
*Karnataka: 12%
*Andhra Pradesh: 6%
Interestingly, 72% of these projects are aimed at producing ammonia, while 20% have yet to declare their intended end-use applications.
Leaders Weigh in on India’s Hydrogen Vision
Debmalya Sen, President, IESA, emphasized, “This platform will pave the way for India’s transition to a resilient energy system. We must ensure we meet rising energy demands while achieving our 5 MTPA green hydrogen production target by 2030”.
Vinayak Walimbe, Managing Director of Customized Energy Solutions (CES), commented, “Despite numerous policy interventions, addressing the urgency of decarbonization still requires deeper coordination and resolution of several operational issues”.
Cost and Infrastructure Challenges Remain
The report highlights a key barrier to widespread GH2 adoption—cost. For end consumers, who account for 6% of total hydrogen use, the landed cost remains high due to added expenses in storage and transportation. Moreover, open-access regulations often limit renewable energy usage for commercial and industrial consumers. This, in turn, hampers the full utilization of electrolyzers, reducing overall project viability.
Green Hydrogen Still Costlier than Fossil Alternatives
According to the report, the Levelized Cost of Hydrogen (LCOH) in the base case is 2 to 4 times higher than that of fossil fuel-based hydrogen. As reported by msn.com, even in a highly optimistic scenario, the LCOH remains 1.5 to 2.5 times higher—though this is closer to the recent first price discovery of green hydrogen in India.
