India’s Hydrogen Demand to Hit 8.8 MTPA by 2032: IESA Report

11 Jul 2025 CW Team

Unveiled on the first day of the India Energy Storage Week (IESW) 2025, the report points out a gap between ambitious project announcements and actual progress. While green hydrogen (GH₂) projects totalling 9.2 MTPA have been announced, only a limited number have reached Final Investment Decision (FID) or secured long-term domestic or international offtake agreements.

In a baseline scenario—where just 30 per cent of announced GH₂ capacity is commissioned within ten years—electrolytic and bio-hydrogen supply will be able to meet only 31 per cent of domestic demand by 2032.

The report also highlights that four states account for 82 per cent of GH₂ project announcements:

Odisha: 38 per cent

Gujarat: 26 per cent

Karnataka: 12 per cent

Andhra Pradesh: 6 per cent

Additionally, 72 per cent of these projects are aimed at ammonia production, while 20 per cent have not disclosed their end-use applications.

Debmalya Sen, President of IESA, said the IESW gathering marks a pivotal moment in India's energy transition. “Our focus remains on achieving the national target of 5 MTPA green hydrogen production capacity by 2030,” he noted.

Vinayak Walimbe, Managing Director of Customized Energy Solutions (CES), cautioned that despite government incentives and policy support, decarbonisation challenges persist. Hydrogen costs remain high—especially for commercial users, who face additional storage and transport costs.

Regulatory barriers also hinder efficiency. For example, open-access electricity regulations often prevent commercial and industrial users from offsetting renewable energy, reducing electrolyser utilisation.

The Levelised Cost of Hydrogen (LCOH) remains a concern. In the base case, LCOH is estimated to be two to four times higher than fossil fuel-based hydrogen. Even in an optimistic scenario, it is still 1.5 to 2.5 times higher—although this is approaching recent green hydrogen price discoveries in India.

The event, held at IICC Yashobhoomi, marks the 11th edition of India Energy Storage Week, hosted by IESA.

India’s hydrogen demand is projected to grow at a compound annual growth rate (CAGR) of 3 per cent, reaching 8.8 million tonnes per annum (MTPA) by 2032, according to a report released by the India Energy Storage Alliance (IESA).Unveiled on the first day of the India Energy Storage Week (IESW) 2025, the report points out a gap between ambitious project announcements and actual progress. While green hydrogen (GH₂) projects totalling 9.2 MTPA have been announced, only a limited number have reached Final Investment Decision (FID) or secured long-term domestic or international offtake agreements.In a baseline scenario—where just 30 per cent of announced GH₂ capacity is commissioned within ten years—electrolytic and bio-hydrogen supply will be able to meet only 31 per cent of domestic demand by 2032.The report also highlights that four states account for 82 per cent of GH₂ project announcements:Odisha: 38 per centGujarat: 26 per centKarnataka: 12 per centAndhra Pradesh: 6 per centAdditionally, 72 per cent of these projects are aimed at ammonia production, while 20 per cent have not disclosed their end-use applications.Debmalya Sen, President of IESA, said the IESW gathering marks a pivotal moment in India's energy transition. “Our focus remains on achieving the national target of 5 MTPA green hydrogen production capacity by 2030,” he noted.Vinayak Walimbe, Managing Director of Customized Energy Solutions (CES), cautioned that despite government incentives and policy support, decarbonisation challenges persist. Hydrogen costs remain high—especially for commercial users, who face additional storage and transport costs.Regulatory barriers also hinder efficiency. For example, open-access electricity regulations often prevent commercial and industrial users from offsetting renewable energy, reducing electrolyser utilisation.The Levelised Cost of Hydrogen (LCOH) remains a concern. In the base case, LCOH is estimated to be two to four times higher than fossil fuel-based hydrogen. Even in an optimistic scenario, it is still 1.5 to 2.5 times higher—although this is approaching recent green hydrogen price discoveries in India.The event, held at IICC Yashobhoomi, marks the 11th edition of India Energy Storage Week, hosted by IESA.

Equipment

29 Oct 2025

Handling the Bottom Line

In a highly competitive construction environment, efficient material handling is “the silent engine of profitability”, to quote Vaibhav Kulkarni, General Manager Projects, JP Infra Realty. “It’s not just about moving materials from A to B but developing a strategy to minimise touchpoints, reduce waste and maximise spends.”Planning stageBefore investing in material, Kulkarni recommends designing the material flow. “Map the journey of major materials from the delivery point to their final placement,” he recommends. While doing this, “minimise double-handling and identif..

Infrastructure Transport

29 Oct 2025

Taking Flight!

When Prime Minister Narendra Modi inaugurated the Navi Mumbai International Airport (NMIA) on October 8, 2025, it marked far more than the opening of another terminal – it signified a turning point in India’s aviation and infrastructure narrative. Developed by Adani Airport Holdings Ltd (AAHL) in partnership with the City and Industrial Development Corporation (CIDCO), NMIA represents a bold vision of how modern India intends to connect its people, power its economy and project its identity on the global stage.“The Navi Mumbai International Airport is a project that exemplifies the visio..

Infrastructure Transport

29 Oct 2025

Highway Guidelines 2.0

In August 2025, a Public Accounts Committee comprising members of the Lok Sabha and Rajya Sabha presented a report, ‘Levy and Regulation of Fees, Tariffs, User Charges etc on Public Infrastructure and Other Public Utilities in the context of the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI).Having examined present design accountability, subcontracting, pavement failures, emergency response mechanisms, toll reforms, service quality, stakeholder consultations and other aspects, the Committee presented recommendations covering the planning a..