India’s green hydrogen ambitions are faltering due to slow project commissioning, driven by inadequate infrastructure and unclear demand signals, a report by the Institute for Energy Economics and Financial Analysis said.
A report from Institute for Energy Economics and Financial Analysis (IEEFA) noted that despite strong investor interest, 94% of the country’s planned green hydrogen capacity remains at the announcement stage, the US-based energy think tank said, due to higher costs as one of the main deterrents for buyers.
The government launched the National Green Hydrogen Mission in 2023 with a $2.2 billion budget, targeting 5 million metric tonnes per annum (MMTPA) of production by 2030. However, a top clean energy department official said earlier this week that India is likely to achieve that target only by 2032.
IEEFA said India has 158 projects under development, but only 2.8% are operational and 0.1% under construction as of August. Announced projects total 11.2 MMTPA — more than double the target — but progress is hampered by weak demand, along with a lack of storage and transport facilities, IEEFA added. The full report is available here.
