Hydrogen demand set to double by 2030: Report

New Delhi: India's hydrogen demand is poised to double to nearly 12 million tonnes per annum (mtpa) by 2030, according to a Nuvama Institutional Equities report. The expected rise comes mainly from fertiliser, refining and petrochemical sectors.

The report says that fertilisers will make up more than half of this demand, reaching about 6.1 mtpa by 2030, while refineries may need about 4.5 mtpa. Petrochemicals could add another 1.3 mtpa as new capacity comes up. "GH2 (green hydrogen) uptake in steel, long-haul heavy-duty transportation, shipping and power could emerge as GH2 consuming sectors in the long term," the report said.

India is trying to build this future through the National Green Hydrogen Mission, which is the main policy guide for creating green hydrogen infrastructure. The mission has an outlay of about Rs 197 billion. Most of this money is linked to the SIGHT scheme, which supports green hydrogen production, consumption and electrolyser manufacturing. "Pilot projects, R&D and other mission components provide additional foundational support," the report notes.

Since the launch of India's green hydrogen policy in 2022 and the Mission in early 2023, 13 states have designed their own support plans. These include waivers on power transmission, subsidies, interest support, training programmes, and help with land and state taxes. Together, central and state measures may create a support pool of almost USD 61 billion.