Key Takeaways
- 94% of India’s planned green hydrogen projects remain at announcement stage
- Only 2.8% of 158 projects are operational as of August
- Production target of 5 MMTPA likely delayed until 2032
- Weak demand and infrastructure gaps hampering progress
India’s ambitious green hydrogen push is facing significant delays, with 94% of planned capacity stuck at the announcement stage due to weak demand and infrastructure challenges, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
National Mission Behind Schedule
The government’s National Green Hydrogen Mission, launched in 2023 with a $2.2 billion budget, aims to produce 5 million metric tonnes per annum (MMTPA) by 2030. However, a senior clean energy official recently indicated this target may only be achieved by 2032.
Current project status reveals the scale of the challenge: of 158 projects under development, merely 2.8% are operational and only 0.1% are under construction. While announced projects total 11.2 MMTPA—more than double the national target—progress is stalled by inadequate storage, transport facilities, and unclear demand signals.
Demand Generation Critical for Growth
Industry projections estimate India’s total hydrogen demand will reach 15-20 MMTPA by 2030. Green hydrogen could capture 25-33% of this market with appropriate policy support across steel, chemicals, transport, and export sectors.
The IEEFA report recommends several measures to stimulate demand:
- Hydrogen purchase obligations
- Demand aggregation mechanisms
- Development of hydrogen hubs with shared infrastructure
Charith Konda, energy specialist at IEEFA, emphasized: “Policy nudges and high-level decarbonisation goals will likely drive demand, but sustained uptake needs global collaboration and concrete domestic steps.”
