India’s hydrogen demand is expected to grow steadily at a compound annual rate of 3%, reaching 8.8 million tonnes per annum by 2032, according to a recent IESA report released at India Energy Storage Week.
While over 9.2 MTPA of green hydrogen project capacity has been announced, the report highlights that only a limited number have secured Final Investment Decisions or long-term offtake agreements. If just 30% of this capacity is commissioned in the next decade, electrolytic and bio-hydrogen could meet around 31% of domestic demand by 2032.
Many projects (82%) are concentrated in four states—Odisha (38%), Gujarat (26%), Karnataka (12%) and Andhra Pradesh (6%)—with 72% targeting ammonia production and 20% yet to define their end-use applications
The report underscores high production costs remain a significant barrier: even in optimistic cases, green hydrogen’s levelized cost remains 1.5–2.5 times higher than fossil-based hydrogen, driven by electricity expenses, electrolyzer capital costs, and lower system utilization. Open-access electricity regulations also limit the use of renewable energy for industrial hydrogen production
Vinayak Walimbe, MD of Customized Energy Solutions, noted that despite policy measures, key decarbonization challenges remain and that the report is essential for guiding policymakers and stakeholders toward accelerating the hydrogen mission
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