In order to meet India’s ambitious goals to produce 5 million metric tonnes (MMT) of green hydrogen by 2030, the country must scale up its green hydrogen demand, says a new joint report.
The report by Bain and Company, the Confederation of Indian Industry (CII) and Rocky Mountain Institute (RMI), titled, ‘From Promise to Purchase: Unlocking India’s Green Hydrogen Demand’, was released on Thursday at the CII International Business Conclave.
India has set a bold near-term milestone of creating 5 MMT of green hydrogen production capacity by 2030, and achieving net-zero emissions by 2070.
The study states that India can achieve its 5 MMT green hydrogen target through a potential pathway that includes measured blending, strategic sector selection, leveraging public procurement, and aligning with export opportunities.
“This report is a playbook for turning ambition into action,” said Sumant Sinha, Chairman CII Energy Transition and Hydrogen Council, and Chairman and CEO, ReNew.
The demand for green hydrogen, says the report, is expected to reach up to 2 MMT from oil refining, 0.9 MMT from the fertiliser sector, and 0.1 MMT from piped natural gas by 2030. Niche sectors such as chemicals, glass, and ceramics could also contribute approximately 0.07 MMT, while public procurement of green steel could unlock up to 0.6 MMT of demand.
On the export front, green hydrogen exports could generate between 0.8-1.1 MMT, and green steel exports could create an additional 0.1-0.2 MMT of demand for green hydrogen, it stated.
There are also listed ways to boost market uptake to help meet India’s 2030 target, as well as catalysts necessary to reduce risks and costs associated with the adoption of green hydrogen including optimising input costs, securing offtake agreements, and accessing low-cost funds.
Vineet Mittal, co-chairman, CII Energy Transition and Hydrogen Council and chairman and managing director, Avaada, said the report highlights sector-specific and demand-side opportunities for green hydrogen.
While the supply side is gaining traction, demand-side interventions will be essential to translating this ambition into reality, said Sachin Kotak, partner and APAC leader of Bain and Company’s Oil and Gas practice. Kotak believes the total announced capacity to exceed the government’s 5 MMT target by 2.5 times.
Blending green hydrogen with grey hydrogen in refining and fertilisers sectors, as well as with natural gas in the PNG (piped natural gas) segment, enabling cost-parity substitution in strategically-selected industries, leveraging public procurement to anchor domestic markets and boosting export-oriented plays could potentially unlock scalable demand and position, Kotak added.
The report underscores that achieving the 5 MMT target requires a well-integrated initiative that bolsters green hydrogen adoption across industries, infrastructure, and exports.
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