India Unveils Roadmap To Boost Green Hydrogen Demand

India’s ambitions to produce 5 million metric tons (MMT) of green hydrogen by 2030 have received a crucial boost, with a comprehensive roadmap released jointly by Bain & Company, the Confederation of Indian Industry (CII), and the Rocky Mountain Institute (RMI). The report, From Promise to Purchase: Unlocking India’s Green Hydrogen Demand, outlines actionable strategies to generate demand across key domestic sectors and international markets, marking a significant pivot from supply-side commitments to demand-side readiness.

According to the report, India’s green hydrogen demand can be unlocked by targeting high-volume sectors such as oil refining, fertilizers, and piped natural gas (PNG), which together could generate up to 3 MMT of demand by 2030. Additionally, export opportunities may create demand for 0.8–1.1 MMT of green hydrogen, while public procurement of green steel could unlock up to 0.6 MMT. These interventions are crucial for achieving India’s 2030 green hydrogen milestone and positioning the country as a global leader in clean energy and industrial decarbonization.

Speaking at the release of the report during the CII International Business Conclave on Green Hydrogen in New Delhi, Sumant Sinha, Chairman of the CII Energy Transition and Hydrogen Council and CEO of ReNew, described the report as a playbook for translating India’s green hydrogen aspirations into actionable strategies. He emphasized its potential to reshape India’s energy landscape while enhancing energy independence.

The report reveals that blending green hydrogen with grey hydrogen and natural gas offers a rapid avenue for boosting demand. In refining, blending 10% green hydrogen could generate 0.5 MMT of demand with a minimal cost increase, and with production costs falling to $2.5–$3/kg, blending rates could rise to 40%, yielding up to 2 MMT of demand. A 20% blend in the fertilizer sector could create 0.9 MMT of demand, while PNG blending at 5–10% could contribute up to 0.1 MMT.

For niche sectors such as chemicals, ceramics, and glass, green hydrogen offers a cost-neutral or even cost-competitive alternative for smaller players who face higher procurement costs for grey hydrogen. A 20% substitution in these fragmented sectors could create demand of 0.07 MMT by 2030.

Public procurement has also emerged as a powerful lever. By mandating a 10–15% share of green steel in government infrastructure projects—including bridges, ports, and housing—India could drive 0.4–0.6 MMT of green hydrogen demand. With public sector steel consumption expected to touch 70 MT by 2030, this would provide a stable domestic market for green hydrogen-based products.

On the export front, the report notes that India’s favorable renewable energy profile and competitive costs could position it as a major exporter of green hydrogen, ammonia, and green steel. Capturing just 5–7.5% of the green hydrogen import needs of key markets like the EU and South Korea could create demand for 0.8–1.1 MMT. Moreover, the EU’s Carbon Border Adjustment Mechanism (CBAM) is expected to drive competitiveness of Indian green steel, potentially creating up to 0.18 MMT of green hydrogen demand through steel exports.

Experts from the report consortium underscored the importance of long-term policy support, access to low-cost blended capital, carbon pricing, and the establishment of hydrogen hubs. Vineet Mittal, Co-Chairman of the CII Energy Transition and Hydrogen Council and CMD of Avaada, emphasized the need to reduce risks and costs through strategic offtake agreements and financing solutions.

According to Sachin Kotak, Partner and APAC Leader of Bain & Company’s Oil and Gas practice, although India’s announced green hydrogen production capacity already exceeds the government’s 5 MMT target by more than twofold, demand-side measures are essential for translating this capacity into actual impact. He highlighted the importance of public procurement, export-focused strategies, and cost-effective blending as key to unlocking scalable and sustainable demand.

Jagabanta Ningthoujam, Principal at RMI, added that bankability is critical. He pointed to Solar Energy Corporation of India’s green ammonia tenders as a starting point but stressed the need for deeper market signals, especially through long-term contracts and purchase obligations.

The report concludes that if India implements the full set of proposed interventions—across blending, niche industrial applications, public procurement, and exports—it could generate the full 5 MMT of green hydrogen demand required by 2030. At the very least, the country is positioned to achieve a baseline demand of 2.1 MMT, paving the way for the hydrogen economy to flourish with the right enablers in place.

This strategic focus on the demand side marks a decisive turn in India’s green hydrogen journey, laying the groundwork for sustainable industrial transformation and global leadership in clean energy.