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Unlocking green hydrogen demand at scale is critical to achieving the goal of 5 million metric tonnes production by 2030, said a new joint report by Bain & Company, CII and Rocky Mountain Institute.
The report 'From Promise to Purchase: Unlocking India’s Green Hydrogen Demand' was released on Thursday at CII International Business Conclave on green hydrogen.
India has set a bold near-term milestone of creating 5 million metric tonnes (MMT) of green hydrogen production capacity by 2030.
However, the report stated that unlocking green hydrogen demand at scale is critical to achieving this vision.
The report has been done through collaboration between Bain & Company, the Confederation of Indian Industry (CII) and Rocky Mountain Institute (RMI). It lays out a potential pathway to make this vision a reality.
The study stated that India can achieve its 5 MMT green hydrogen target through measured blending, strategic sector selection, leveraging public procurement, and aligning with export opportunities.
According to the report, demand for green hydrogen is expected to reach up to 2 million metric tonnes (MMT) from oil refining, 0.9 MMT from the fertiliser sector, and 0.1 MMT from piped natural gas by 2030. Niche sectors such as chemicals, glass, and ceramics could contribute approximately 0.07 MMT, while public procurement of green steel could unlock up to 0.6 MMT of demand.
On the export front, green hydrogen exports could generate between 0.8-1.1 MMT, and green steel exports could create an additional 0.1-0.2 MMT of demand for green hydrogen, it stated.
The report outlines a series of demand-side initiatives to boost market uptake and help meet India’s 2030 green hydrogen target.
"This report is a playbook for turning ambition into action," said Sumant Sinha, Chairman CII Energy Transition and Hydrogen Council, and Chairman and CEO, ReNew.
Vineet Mittal, Co-chairman CII Energy Transition and Hydrogen Council and chairman and Managing Director, Avaada said the report highlights sector-specific and demand-side opportunities for green hydrogen.
Key catalysts necessary to reduce risks and costs associated with the adoption of green hydrogen include optimising input costs, securing offtake agreements, and accessing low-cost funds, he said.
Sachin Kotak, Partner and APAC leader of Bain & Company’s Oil and Gas practice, said, "While the supply side is gaining traction-with total announced capacity expected to exceed the government’s 5 MMT target by 2.5 times-demand-side interventions will be essential to translating this ambition into reality." Blending green hydrogen with grey hydrogen in refining and fertilisers sectors, as well as with natural gas in the PNG (piped natural gas) segment, enabling cost-parity substitution in strategically selected industries. Leveraging public procurement to anchor domestic markets and boosting export-oriented plays could potentially unlock scalable demand and position India as a leader in decarbonising hard-to-abate sectors while strengthening energy independence, Kotak added.
The report underscores that achieving the 5 MMT target requires a well-integrated initiative that bolsters green hydrogen adoption across industries, infrastructure, and exports.
Published on June 19, 2025
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