INFRASTRUCTURE
Green hydrogen demand likely to rise by 3% by 2032 to meet 31% domestic consumption
- IBJ Bureau
- Jul 09, 2025
India’s hydrogen demand is expected to rise at a compound annual growth rate (CAGR) of 3 per cent to 8.8 million tonnes per annum (mtpa) by 2032, a report released by India Energy Storage Alliance (IESA) has said.
The report unveiled on the first day of India Energy Storage Week on Tuesday has said that despite announcements of green hydrogen projects of over 9 mtpa capacity, few in India have reached the final investment decision or secured long-term offtake agreements from domestic or international markets.
In the baseline scenario, with 30 per cent of the announced green hydrogen (GH2) capacity commissioned within ten years, supply of electrolytic bio-H2 (bio-hydrogen) can meet approximately 31 per cent of domestic demand in 2032.
The report further highlights that out of the announcements of 9.2-mtpa GH2 project, four States account for 82 per cent projects: Odisha (38 per cent), Gujarat (26 per cent), Karnataka (12 per cent) and Andhra Pradesh (6 per cent). About 72 per cent of the announced projects are targeting use of GH2 for production of ammonia, whereas 20 per cent have not announced end-use applications.
IESA President Debmalya Sen notes: “This gathering will pave the way for India’s transition to a resilient energy system, ensuring we meet our growing energy demands while keeping our target of production capacity of 5 mtpa of green hydrogen by 2030 in sight.”
Customised Energy Solutions Managing Director Vinayak Walimbe points out that several challenges remain in addressing the urgent issue of decarbonisation despite various policy interventions and government initiatives to promote the green hydrogen mission.
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