India’s green hydrogen plans slow as most projects remain on paper and developers wait for clearer demand signals, a study by the Institute for Energy Economics and Financial Analysis shows

India’s plan to build a large green hydrogen industry is slowing as projects face weak demand signals, limited infrastructure and unclear pricing pathways. The Institute for Energy Economics and Financial Analysis (IEEFA) says most proposals remain at an early stage despite interest from investors.

IEEFA’s note says ninety-four per cent of planned capacity is still at the announcement stage, with only 2.8 per cent operating and a very small share under construction. Higher costs continue to act as a barrier for many potential buyers.

The government launched the National Green Hydrogen Mission in 2023 with a budget of Rs 1,97,00,00,000. It set a goal to produce five million tonne a year by 2030. A senior official in the clean energy ministry said earlier this week that India is likely to reach this level by 2032.

IEEFA has counted one hundred and fifty-eight projects under development across the country. These add up to 11.2 million tonne a year of proposed capacity. The report says slow progress is linked to weak demand and the lack of storage and transport facilities.

Industry groups expect India’s total hydrogen use to reach between fifteen and twenty million tonne a year by 2030. Green hydrogen could supply between 25 and 33 per cent of this if policies support its use in steel, chemicals, heavy transport and exports.

The report recommends purchase obligations, demand aggregation and hydrogen hubs with shared infrastructure to lower costs and support growth. “Policy nudges and high-level decarbonisation goals will likely drive demand, but sustained uptake needs global collaboration and concrete domestic steps,” said IEEFA, energy specialist, Charith Konda.