India Needs Stronger Infrastructure, Industrial Demand to Scale Green Hydrogen: S&P Global Energy

New Delhi, Sep 26 (KNN) India’s green hydrogen growth will depend on affordable renewable power, stronger infrastructure and sustained industrial demand, S&P Global Energy said following its Horizons Clean Energy Expansion India 2026 conference.

The conference highlighted the need for reliable and cost-competitive renewable power, stronger electricity grids and maritime infrastructure, greater policy certainty and sustained demand from industry.

S&P Global Energy said the pace and cost of green hydrogen development would depend on expanding renewable energy capacity, strengthening transmission networks and enabling industries to procure power directly from renewable energy producers, ANI reported.

It also called for a competitive domestic supply chain while balancing domestic manufacturing ambitions with the cost and speed of adding new production capacity.

Infrastructure Critical For Green Hydrogen Exports

India’s export potential will depend on infrastructure connecting production centres with international markets, the note said.

Port readiness, shipping capacity, fuel supply facilities and safety systems for hydrogen-based products such as ammonia will be critical for expanding exports. Long-term supply agreements between producers and buyers could also provide greater investment certainty.

The note also stressed the need to align hydrogen policies and standards across major markets, along with transparent price benchmarks, stable regulations and effective price-discovery mechanisms.

Fertiliser, Refining, Steel Could Drive Demand

Fertiliser, refining and steel industries could emerge as major domestic consumers of green hydrogen as India seeks to reduce industrial emissions.

However, wider adoption will depend on the cost of replacing conventional hydrogen, the feasibility of modifying existing facilities and whether producing hydrogen within industrial plants is economically preferable to purchasing it from external suppliers.

“Production capacity alone will not create a viable green hydrogen market,” S&P Global Energy said, stressing the need for coordinated development across the value chain, from renewable power and transmission to ports, policy, pricing and long-term industrial demand.

(KNN Bureau)