New Delhi: India’s hydrogen demand is projected to rise at a compound annual growth rate (CAGR) of 3 per cent to 8.8 million metric tonnes per annum (MTPA) by 2032, according to a report released by the India Energy Storage Alliance (IESA) at the 11th edition of India Energy Storage Week (IESW) 2025.
Despite green hydrogen project announcements exceeding 9.2 MTPA, only a few projects have reached the Final Investment Decision (FID) or secured long-term offtake agreements from domestic or international markets. The IESA report notes that under a baseline scenario, if 30 per cent of the announced green hydrogen (GH2) capacity is commissioned within ten years, electrolytic and bio-hydrogen supply can meet approximately 31 per cent of domestic demand in 2032.
The event was inaugurated at IICC Yashobhoomi, New Delhi, in the presence of Dr. Ajay Mathur, Ex-DG, International Solar Alliance and Professor, IIT Delhi; Malini Dutt, Trade and Investment Commissioner – India, NSW Government; Manish Sharma, Chairman, Panasonic; Stephen Fernands, Founder & President, Customized Energy Solutions (CES); Vinayak Walimbe, Managing Director, CES; and Debmalya Sen, President, IESA, along with over 200 global energy leaders.
Addressing the inaugural ceremony, Dr. Ajay Mathur said, “IESW 2025 embodies the collective aspirations of the battery and storage communities, fostering collaboration and knowledge exchange among industry professionals. It serves as a crucial platform where individuals from various sectors, such as battery manufacturing, application, and electricity demand, can come together to learn from one another and advance their understanding of the sector.”
The report stated that for schemes being implemented under the National Green Hydrogen Mission (NGHM), a call for proposals or bids has been issued, winning bidders or proposals announced, or fund disbursement has begun. The largest allocations are for subsidies under the GH2 Tranche 1 and 2, electrolyzer manufacturing (ELY Tranche 1 and 2), and green ammonia (GNH3 aggregation) tenders under the Strategic Initiative for Green Hydrogen Transition (SIGHT).
According to the report, four states account for 82 per cent of the announced GH2 projects — Odisha (38 per cent), Gujarat (26 per cent), Karnataka (12 per cent), and Andhra Pradesh (6 per cent). Around 72 per cent of the announced projects are targeting green hydrogen use for ammonia production, while 20 per cent have not announced end-use applications.
Key cost drivers of the Levelized Cost of Hydrogen (LCOH) produced through water electrolysis include the cost of landed electricity, capital expenditure (CAPEX) for the electrolyzer stack and balance of plant, and capacity utilization of the electrolyzer.
Vinayak Walimbe, Managing Director, CES, said, “Despite various policy interventions and government initiatives to promote the green hydrogen mission, several challenges remain in addressing the urgent issue of decarbonization. The IESA India Hydrogen Report, launched at IESW 2025 today, is crucial in raising awareness among policymakers, industry leaders, and stakeholders in the sector, helping to further accelerate the mission.”
According to the status of India’s green hydrogen transition report, the production cost of hydrogen from fossil fuels in India is nearly twice the cost of $1 per kilogram of hydrogen or even higher. For consumers representing about 6 per cent of the total hydrogen market who obtain hydrogen, the landed cost is even greater due to storage and transportation expenses.
Open-access electricity regulations often restrict the renewable energy offset for commercial and industrial consumers, which can reduce the capacity utilization of electrolysers. The estimated LCOH in the base case is two to four times higher than the production cost of fossil fuel-based hydrogen. In a highly optimistic scenario, the estimate is 1.5 to 2.5 times higher, which is close to the recent first price discovery of green hydrogen in India.
Debmalya Sen, President, IESA, said, “With the support of government initiatives to foster innovation and investment in clean energy technologies, IESW 2025 will bring together industry leaders, government representatives, and global experts to showcase groundbreaking solutions. This gathering will pave the way for India’s transition to a resilient energy system, ensuring we meet our growing energy demands while keeping our target of production capacity of 5 million tonnes per annum (MTPA) of green hydrogen by 2030 in sight.”
IESW 2025 is bringing together ministries, government representatives, and companies from over 20 countries. The three-day event will showcase over 300 product innovations in sectors including electric vehicles, charging infrastructure, solar, green hydrogen, and energy storage. Seven or more new product and factory announcements are expected from Indian manufacturers during the event.
