India's ambitious green hydrogen dreams are facing a harsh reality check. Despite grand plans and significant investment, the nation is struggling to meet its production targets. A recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) sheds light on the challenges hindering India's green hydrogen aspirations.
At the heart of the issue are the hurdles in bringing green hydrogen projects to fruition. Most projects are struggling to secure the necessary financial backing. This is primarily due to several factors: hesitant buyers, high production costs, uncertainty regarding long-term demand, and inadequate infrastructure. These issues are collectively slowing down project development, according to the IEEFA.
India's National Green Hydrogen Mission (NHGM), launched in 2023 with a substantial budget of $2.2 billion, set an ambitious goal: to produce five million metric tonnes per annum (mmtpa) of green hydrogen by 2030. But are these goals achievable?
As of August 2025, the country had 158 green hydrogen projects in various stages of development. But here's where it gets controversial: A staggering 94% of the planned capacity is still in the preliminary announcement phase, and a mere 0.1% is under construction. Only 2.8% of the planned capacity is currently operational, revealing the slow progress in project commissioning, as highlighted by IEEFA.
"Although the announced capacity is nearly 2.4 times the government’s target—reflecting strong investor interest in India’s green hydrogen story—there are concerns about how much of this capacity will materialize, given the challenges surrounding its adoption and uptake,” noted Charith Konda, Energy Specialist at IEEFA and one of the authors of the report.
Adding to the concern, Santosh Kumar Sarangi, secretary at the Ministry of New and Renewable Energy, recently stated that India is likely to miss its 2030 goal due to shifting global policies and other factors.
Globally, the enthusiasm for green hydrogen is cooling down. Start-ups are grappling with rising costs and uncertain demand, while major energy companies are scaling back their multi-billion-dollar projects, shifting their focus back to their core oil and gas businesses. This raises the question: Is the global green hydrogen drive losing momentum?
What do you think? Are India's green hydrogen goals realistic, or are there fundamental challenges that need to be addressed? Share your thoughts in the comments below!
