India's Green Hydrogen Market Poised for Growth: Key Insights from Industry Summit

India is steadily advancing towards a robust green hydrogen market, aided by policy support, investments, and pricing insights. The evolution of this market follows natural commodity trends, with promising developments in contracts and supply. The foundation for future growth is being laid with ongoing efforts in pricing benchmarks and sustainable production methods.

India is moving forward in establishing a strong green hydrogen market, as underlined by Rajesh Kumar Mediratta, Managing Director and CEO of the Indian Gas Exchange. Addressing the World Hydrogen India Summit in New Delhi, Mediratta highlighted the critical role of policy frameworks, burgeoning investment interest, and early stages of price discovery.

Mediratta emphasized that the emergence of any new commodity sector requires strategic investments, which are often spurred by long-term agreements. He explained that early market developments are evident with initial contracts and emerging demand and supply, setting the stage for future growth.

As the market matures, Mediratta noted, prices should decrease, making way for short-term trading and eventually exchange-based transactions. This would bring transparency and flexibility, essential for diverse consumer needs. Looking ahead, establishing a spot market could facilitate futures and derivatives, with IGX exploring global models for pricing benchmarks tailored to the Indian context.

Mediratta highlighted that India's ambitious 500 GW renewable energy target, primarily from solar and wind, would create surplus electricity, ideal for green hydrogen production. He dismissed water scarcity concerns by pointing to desalination of seawater, making the production process sustainable and risk-free for energy security.

Market indications are encouraging, with strong interest reflected in recent tenders and improving price points for green hydrogen derivatives. Mediratta expressed optimism about competitive pricing emerging in the near future. He concluded by affirming India's strategic trajectory in building a comprehensive hydrogen ecosystem, aligning technology, policy, and market advances.

(With inputs from agencies.)