India’s Hydrogen Demand Projected To Grow At A CAGR of 3% And Reach 8.8 Million Metric Tons Per Annum By 2032, Reveals Report Launched At IESW 2025

The 11th edition of India Energy Storage Week (IESW) 2025, organised by the India Energy Storage Alliance (IESA), began today with a grand inaugural ceremony at IICC Yashobhoomi in New Delhi. The event brought together over 200 global leaders from the energy sector and featured several key dignitaries including Dr. Ajay Mathur, former Director General of the International Solar Alliance and Professor at IIT Delhi; Malini Dutt, Trade and Investment Commissioner – India, NSW Government; Mr. Manish Sharma, Chairman of Panasonic; Mr. Stephen Fernands, Founder and President of Customized Energy Solutions (CES); Mr. Vinayak Walimbe, Managing Director of CES; and Mr. Debmalya Sen, President of IESA.

During the event, IESA launched its latest Market Reports, which provided an updated analysis of India’s growing hydrogen sector. The reports project that India’s hydrogen demand will grow at a compound annual growth rate (CAGR) of 3%, reaching 8.8 million metric tons per annum (MTPA) by 2032. Although more than 9 MTPA of Green Hydrogen (GH2) capacity has been announced across the country, very few projects have advanced to the Final Investment Decision (FID) stage or secured long-term supply agreements. In a baseline scenario where only 30% of the announced capacity is realized within ten years, the domestic electrolytic and bio-hydrogen supply could meet approximately 31% of the country’s hydrogen demand by 2032.

The reports also highlight the current progress under the National Green Hydrogen Mission (NGHM). Several schemes have already opened for proposals or begun fund disbursement. The largest allocations are for green hydrogen production (GH2 Tranche 1 and 2), electrolyzer manufacturing (ELY Tranche 1 and 2), and green ammonia aggregation (GNH3) tenders under the Strategic Initiative for Green Hydrogen Transition (SIGHT). According to IESA’s analysis, Odisha, Gujarat, Karnataka, and Andhra Pradesh account for 82% of the announced green hydrogen projects, with Odisha leading at 38%. Around 72% of these projects aim to use hydrogen for ammonia production, while 20% have not yet declared any end-use applications.

Dr. Ajay Mathur, Ex-DG- International Solar Alliance & Professor, IIT Delhi, said in a statement, “IESW 2025 embodies the collective aspirations of the battery and storage communities, fostering collaboration and knowledge exchange among industry professionals. It serves as a crucial platform where individuals from various sectors, such as battery manufacturing, application, and electricity demand, can come together to learn from one another and advance their understanding of the sector.”

Mr. Vinayak Walimbe, Managing Director, Customized Energy Solutions (CES), mentioned, “Despite various policy interventions and government initiatives to promote the green hydrogen mission, several challenges remain in addressing the urgent issue of decarbonization. The IESA India Hydrogen Report, launched at IESW 2025 today, is crucial in raising awareness among policymakers, industry leaders, and stakeholders in the sector, helping to further accelerate the mission.”

Mr. Debmalya Sen, President, India Energy Storage Alliance (IESA), commented, “With the support of government initiatives to foster innovation and investment in clean energy technologies, IESW 2025 will bring together industry leaders, government representatives, and global experts to showcase groundbreaking solutions. 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 million tonnes per annum (MMTPA) of green hydrogen by 2030 in sight.”

The report further outlines several key factors influencing the Levelized Cost of Hydrogen (LCOH), including the cost of electricity, capital expenditures for electrolyzer systems, and their operational efficiency. In India, the production cost of hydrogen from fossil fuels is already low, around $1 per kilogram, but for consumers, the cost is significantly higher due to storage and transport costs.

Additionally, limitations in open-access electricity policies can reduce the efficiency of electrolyzers, particularly for industrial consumers. As a result, green hydrogen production costs are currently estimated to be two to four times higher than fossil fuel-based hydrogen in a base scenario, and 1.5 to 2.5 times higher even in the most optimistic estimates though this still aligns closely with the recently discovered green hydrogen pricing in India.

IESW 2025 is set to be a major platform for collaboration and innovation, bringing together ministries, government agencies, and companies from over 20 countries. The event will showcase more than 300 product innovations across electric vehicles, charging infrastructure, solar energy, green hydrogen, batteries, and other renewable energy solutions. It will also feature announcements of new factories and products from India’s leading manufacturers. Over three days, the event will present cutting-edge energy storage technologies, including lithium-ion, lithium-sulfur, and sodium-ion batteries, from innovators across the globe.