Archive · 14 Nov 2025
India's Green Hydrogen Projects Lag Due to Adoption Hurdles, Analysis Finds
India has big plans to make clean energy called green hydrogen, with a special mission and money set aside.
However, a new report shows that most of these projects are just ideas on paper and haven't really started yet.
This is because it costs a lot to make and buy, and there aren't enough places to store or move the hydrogen around.
Also, it's hard to know who will definitely buy it.
To help, experts suggest making rules that make companies buy green hydrogen and building special shared places for companies to store and transport it.
This could help make green hydrogen cheaper and easier to use in the future.
94% of India's planned green hydrogen capacity is still in the announcement stage, according to an IEEFA analysis.
Key barriers to green hydrogen adoption include a lack of committed buyers, high production costs, and inadequate infrastructure.
India's National Green Hydrogen Mission aims for 5 MMTPA production by 2030, but project development is slow.
Only a small fraction (0.1%) of projects are under construction and 2.8% are operational as of August 2025.
Recommendations include implementing hydrogen purchase obligations and developing shared infrastructure hubs to boost adoption.
- Who
- Institute for Energy Economics and Financial Analysis (IEEFA), India
- What
- An analysis reveals that a vast majority of India's planned green hydrogen projects are in the announcement phase, facing challenges in adoption and uptake due to high costs, demand uncertainty, and inadequate infrastructure.
- When
- As of August 2025 for project status; National Green Hydrogen Mission adopted in January 2023.
- Where
- India
- Why
- Lack of committed buyers, high production costs, varying global definitions of green hydrogen, and inadequate infrastructure (storage, transport, shared facilities) hinder project materialisation.
Challenges to Green Hydrogen Adoption
Potential Solutions for Green Hydrogen Adoption
Project Development Stage
Challenges to Green Hydrogen Adoption
A significant majority (94%) of India's planned green hydrogen capacity is currently only announced, with very little (0.1%) under construction and a small fraction (2.8%) operational.
Potential Solutions for Green Hydrogen Adoption
Implementing measures like hydrogen purchase obligations and developing shared infrastructure hubs (hydrogen hubs) can accelerate deployment and adoption by creating sustained demand and reducing costs.
Barriers to Uptake
Challenges to Green Hydrogen Adoption
Primary barriers include a lack of committed buyers, high production costs, unclear global definitions of green hydrogen, and insufficient infrastructure for storage and transportation.
Potential Solutions for Green Hydrogen Adoption
Policy nudges, high-level decarbonisation goals, and global collaboration are expected to drive demand for green hydrogen, but concrete domestic steps are needed for long-term sustained demand generation.
Infrastructure Needs
Challenges to Green Hydrogen Adoption
The development of essential infrastructure like electricity grids, electrolysers, storage tanks, and pipelines is crucial for green hydrogen's role in decarbonisation.
Potential Solutions for Green Hydrogen Adoption
While hydrogen transmission infrastructure is less developed compared to India's electricity grid, shared infrastructure in hubs can lower costs and facilitate co-location of production and use.
- Analysis Source
- Institute for Energy Economics and Financial Analysis (IEEFA)
- Projects Assessed
- 158
- Announced Capacity Percentage
- 94%
- Operational Capacity Percentage
- 2.8%
- Under Construction Percentage
- 0.1%
- National Green Hydrogen Mission Aim (2030)
- 5 MMTPA production
- Total Hydrogen Demand Estimate (2030)
- 15–20 MMTPA
- Budgeted Outlay for NHGM
- Rs 197 billion
