India’s Green Hydrogen Push Slows as Projects Stall, Says IEEFA
India’s ambitious green hydrogen roadmap is losing momentum due to sluggish project commissioning and weak demand signals, according to a new assessment by the U.S.-based Institute for Energy Economics and Financial Analysis (IEEFA). Despite strong investor interest, the report highlights that 94% of India’s planned green hydrogen capacity is still only at the announcement stage, with high production costs posing a major barrier for potential buyers.
Launched in 2023 with a ₹197 billion ($2.2 billion) budget, the National Green Hydrogen Mission aims to produce 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030. However, a senior clean energy official recently suggested the target may be met only by 2032. IEEFA data shows that of India’s 158 hydrogen projects, just 2.8% are operational and 0.1% are under construction as of August, despite announced capacities totaling 11.2 MMTPA—more than twice the national goal. Progress is being held back by limited storage and transport infrastructure and an uncertain offtake market.
Industry projections estimate India’s hydrogen demand at 15–20 MMTPA by 2030, with green hydrogen capable of meeting up to one-third of that figure if strong policy support materializes across steel, chemicals, transport, and export sectors. To accelerate adoption, the report urges the introduction of hydrogen purchase obligations, demand aggregation, and dedicated hydrogen hubs. “Policy nudges and high-level decarbonisation goals will likely drive demand, but sustained uptake needs global collaboration and concrete domestic steps,” said Charith Konda, energy specialist at IEEFA.
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