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.