India’s Hydrogen Demand To Hit 8.8 MTPA By 2032: IESA Report

New Delhi, July 9 (KNN) India’s hydrogen demand is projected to grow at a compound annual growth rate (CAGR) of 3 percent, reaching 8.8 million metric tonnes per annum (MTPA) by 2032, according to the India Energy Storage Alliance (IESA). 

The IESA report was released at the 11th India Energy Storage Week (IESW) 2025, held at IICC Yashobhoomi, New Delhi.

Despite a pipeline of green hydrogen (GH2) project announcements exceeding 9.2 MTPA, the report highlights that only a limited number have advanced to Final Investment Decision (FID) or secured long-term offtake commitments. 

Under IESA’s baseline scenario, even if 30 percent of the announced capacity is commissioned within the decade, electrolytic and bio-hydrogen will cover just 31 percent of projected domestic demand by 2032.

The IESA report also detailed developments under the National Green Hydrogen Mission (NGHM), including active tenders and subsidy allocations across GH2 production (Tranche 1 & 2), electrolyser manufacturing (ELY Tranche 1 & 2), and green ammonia (GNH3) aggregation. 

These efforts are part of the government’s Strategic Initiative for Green Hydrogen Transition (SIGHT).

Four states account for a dominant 82 percent of the announced GH2 capacity: Odisha (38 percent), Gujarat (26 percent), Karnataka (12 percent), and Andhra Pradesh (6 percent). Notably, 72 percent of these projects target ammonia production, while 20 percent have yet to declare an end-use application.

The report emphasised that key cost drivers for the Levelised Cost of Hydrogen (LCOH) from water electrolysis include the cost of landed electricity, capital expenditure on electrolyser systems, and electrolyser utilisation rates. 

Despite significant policy interventions, the base-case LCOH remains 2 to 4 times higher than the production cost of fossil fuel-based hydrogen. 

Even in a highly optimistic scenario, green hydrogen remains 1.5 to 2.5 times more expensive—though that margin aligns with recent price discovery trends in India.

Vinayak Walimbe, Managing Director, Customized Energy Solutions (CES), noted, “Despite various policy interventions and government initiatives to promote the green hydrogen mission, several challenges remain in addressing the urgent issue of decarbonisation. The IESA India Hydrogen Report, launched at IESW 2025, is crucial in raising awareness among policymakers, industry leaders, and stakeholders in the sector, helping to further accelerate the mission.”

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 brings together delegates from over 20 countries, featuring over 300 product innovations across electric mobility, charging infrastructure, solar energy, hydrogen, and battery storage. 

At least seven new product and factory announcements by Indian manufacturers are anticipated during the three-day event.

(KNN Bureau)