IEEFA has recently published a briefing note titled Enabling Sustainable Demand for Green Hydrogen in India, which assesses the current status of green hydrogen development and the structural challenges constraining market uptake. The note highlights that, as of August 2025, India had announced 158 green hydrogen projects at various stages of development, yet around 94 per cent of the planned capacity remains at the announcement stage. Only a negligible share is under construction, while less than 3 per cent is operational, indicating a slow pace of project commissioning despite growing policy attention.
The briefing identifies weak demand visibility as a primary bottleneck, driven by the absence of committed offtakers and clear demand signals. High production costs, the lack of harmonised definitions for green hydrogen, and inadequate infrastructure for storage, transportation and shared facilities further limit project viability. While India’s overall hydrogen demand is estimated to reach 15-20 MMTPA by 2030, the report notes that green hydrogen demand could rise to 4.08-6.57 MMTPA if enabling policies are introduced to stimulate adoption in sectors such as steel, transportation, chemicals and exports.
To bridge the gap between announcements and execution, the note emphasises the importance of establishing a globally accepted emissions accounting framework, introducing hydrogen purchase obligations, aggregating demand, and developing hydrogen hubs with shared infrastructure. These measures, it argues, are critical to scaling up demand and accelerating the commissioning of green hydrogen projects in India.
Read report here