India Hydrogen Energy Storage Market Outlook to 2028

India Hydrogen Energy Storage Market Overview

The India Hydrogen Energy Storage Market was valued at USD 720 million. The market grows due to rising demand for clean and renewable energy sources. Government policies promoting the reduction of carbon emissions and energy security concerns are key drivers propelling the market.

Major players in the market include Tata Power, Indian Oil Corporation, Adani Green Energy, Reliance Industries, and L&T. These companies are playing a critical role in shaping the hydrogen storage landscape through partnerships, innovations, and extensive investments in research and development.

At the World Hydrogen Summit 2024 in the Netherlands, India highlighted its green hydrogen potential, aiming for 5 million tonnes of production by 2030. The country plans to invest $20 billion in green hydrogen projects, targeting a 50% reduction in production costs by 2030, showcasing its commitment to sustainable energy and global leadership in the hydrogen sector.

In 2023, Gujarat emerged as a dominant region for hydrogen energy storage, due to the states industrial growth and proactive policies. Indias hydrogen storage capacity, driven by the region's well-developed renewable energy infrastructure and government initiatives such as the Gujarat Hydrogen Policy launched in 2023.

India Hydrogen Energy Storage Market Segmentation

The market is segmented into various factors like storage type, application, and region.

By Storage Type: The market is segmented by storage into compressed hydrogen, liquid hydrogen, and solid hydrogen. Compressed hydrogen dominates the market, due to its widespread use in industries and transportation. Compressed hydrogen is easy to store and transport compared to other forms.

By Application: The market is segmented by application into industrial, transportation, and energy storage. The industrial segment held the largest share by the growing demand for hydrogen in sectors such as steel production, ammonia synthesis, and refining.

By Region: The market is segmented by region into North, East, West and South. The North region, leads the market with the presence of key industries and government-backed projects like the Delhi Hydrogen Energy Mission has contributed to the dominance of this region.

India Hydrogen Energy Storage Market Competitive landscape

Company

Establishment Year

Headquarters

Tata Power

1919

Mumbai, India

Indian Oil Corporation

1959

New Delhi, India

Adani Green Energy

2015

Ahmedabad, India

Reliance Industries

1973

Mumbai, India

L&T

1938

Mumbai, India

Tata Power: In 2023, Tata Power signed an Mo U with the Government of Maharashtra to develop a 2,800 MW hydrogen energy storage facility, aimed at stabilizing the state's power grid and reducing its carbon footprint by 40%. This project is part of the states broader renewable energy strategy.

Indian Oil Corporation: In December 2023, Indian Oil Corporation (IOCL) announced its plan to achieve net-zero operational emissions by 2046. The company has already installed 238.7 MW of renewable energy, avoided 3.8 million metric tonnes of CO2 emissions, and is expanding its green hydrogen and biofuel projects.

India Hydrogen Energy Storage Market Analysis

Market Growth Drivers

Government Policies and Investments in Hydrogen Energy: India's National Green Hydrogen Mission targets the production of5 million metric tonnesof green hydrogen annually by2030, supported by an investment of19,744 crore. This initiative aims to create600,000 jobsand reduce fossil fuel imports by over1 lakh crore while abating nearly50 MMTof greenhouse gas emissions annually.

Industrial Demand for Hydrogen Storage: The industrial sector, including steel production, ammonia synthesis, and petrochemical industries, is driving the adoption of hydrogen energy storage in India. By 2023, over 500 industries in India started exploring hydrogen as a viable alternative for cleaner energy production. This trend is set to expand as industries seek cost-effective solutions to meet emission reduction targets, with projected hydrogen storage capacity expansions expected to cross 800 MW by 2024.

Technological Advancements in Hydrogen Storage: Technological advancements in hydrogen storage solutions, including the development of solid hydrogen storage systems and improved compression technology, are driving the market forward. As of 2023, companies like L&T and Indian Oil have introduced new storage systems that reduce operational costs by 20-25%, making hydrogen storage more economically viable for industries and governments.

Market Challenges

Energy Loss in Hydrogen Production and Storage: Hydrogen storage systems currently face energy losses during both production and storage, with an estimated 15-20% loss in energy efficiency by 2023. This inefficiency, coupled with the high cost of hydrogen production, poses a challenge for scaling up hydrogen energy storage systems. Addressing these losses through improved storage techniques is critical to enhancing the competitiveness of hydrogen energy.

Infrastructure and Transportation Bottlenecks: Transporting hydrogen safely remains a challenge, with limited infrastructure and logistical issues in moving hydrogen over long distances. In 2023, India had only 10 dedicated hydrogen pipelines, limiting the use of hydrogen in sectors like transportation and industry. The lack of a comprehensive hydrogen distribution network poses hurdles for market expansion by 2028.

Government Initiatives

Hydrogen Fuel and Energy Storage Policy: In 2024, the Indian government introduced a Hydrogen Fuel and Energy Storage Policy aimed at supporting the development of hydrogen storage systems. The policy offers tax rebates and financing options for companies investing in hydrogen storage and production, which is expected to drive further investments from both domestic and international firms by 2028.

Increased Support for Hydrogen Vehicles: In 2023, the Indian government launched a subsidy program for hydrogen-powered vehicles, to manufacturers to support the development of hydrogen refueling stations across major cities. This initiative is expected to boost the demand for hydrogen energy storage systems to power transportation networks.

India Hydrogen Energy Storage Market Future Outlook

The future trends include the expansion of hydrogen-powered transportation, growth in green hydrogen projects, technological advancements in hydrogen storage, and increased international collaborations.

Future Market Trends

Growth in Hydrogen-Powered Transport: By 2028, hydrogen-powered vehicles are expected to become a key growth area for hydrogen energy storage, driven by government initiatives and increasing investments. The market for hydrogen refueling stations in India is projected to grow to 500 stations by 2028, providing infrastructure for both private and public transport sectors.

Increased International Collaborations: Over the next five years, India is expected to collaborate with international players in the hydrogen energy sector, including Europe and Japan. These partnerships will bring in new investments, technological expertise, and infrastructure developments, further boosting Indias hydrogen storage market by 2028.
Please Note: It will take 5-7 business days to complete the report upon order confirmation