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What happened
India's goal of producing 5 million tons of green hydrogen by 2030 is now deemed unattainable, with projections revised to 3 million tons. This shift is largely due to global policy changes that have created uncertainty in hydrogen demand. The International Maritime Organization's recent postponement of a vote on green fuel mandates has further clouded the industry's outlook. Indian producers are now extending project timelines to avoid oversupply, as costs for green hydrogen remain high. Approximately 70% of the expected output will be exported, primarily to Europe, Japan, and South Korea, while the rest will serve domestic industries like fertilizer and oil refining. Despite these challenges, India is still on track to become a significant global producer of green hydrogen.
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Key insights
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1
Revised Production Targets
India now anticipates reaching 3 million tons by 2030.
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2
Global Policy Impact
Delays in clean fuel mandates are affecting hydrogen demand.
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3
Export Focus
70% of green hydrogen output is expected for export.
Takeaways
India's green hydrogen ambitions face significant hurdles due to shifting global policies and economic factors, but it remains committed to becoming a major producer in the future.