PTI New Delhi

India's hydrogen demand is expected to rise at a compound annual growth rate of 3% to 8.8 million tonne per annum by 2032, a report released by India Energy Storage Alliance (IESA) on Tuesday said.

The report unveiled on the first day of India Energy Storage Week here said that despite announcements of green hydrogen projects of over 9 MTPA capacity, few in India have reached the Final Investment Decision (FID) or secured long-term offtake agreements from domestic or international markets.

In the baseline scenario, with 30% of the announced green hydrogen (GH2) capacity commissioned within ten years, electrolytic c bio-H2 (bio hydrogen) supply can meet approximately 31 per cent of domestic demand in 2032.

The report further highlighted that out of 9.2 million tonne per annum (MTPA) GH2 project announcements, 4 states account for 82% projects: Odisha (38%), Gujarat (26%), Karnataka (12%), Andhra Pradesh (6%). About 72% of the announced projects are targeting GH2 use for ammonia production, whereas 20% have not announced end use applications.

Debmalya Sen, President, IESA said "This gathering will pave the way for India's transition to a resilient energy system, ensuring we meet our growing energy demands while keeping our target of production capacity of 5 MTPA of green hydrogen by 2030 in sight." Vinayak Walimbe, MD, Customized Energy Solutions (CES), stated, despite various policy interventions and government initiatives to promote the green hydrogen mission, several challenges remain in addressing the urgent issue of decarbonization.