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Hydrogen production in India in 2026 is estimated at approximately 5.5 to 6.5 million tonnes per year, positioning India among the largest hydrogen producers globally by volume. Hydrogen production is deeply embedded within India’s refining, fertiliser, chemical and steel sectors, where hydrogen is produced primarily for captive industrial consumption rather than merchant trade.
Production volumes are determined by installed reforming capacity, refinery and fertiliser plant utilisation rates, natural gas availability and operational efficiency. India’s hydrogen output remains predominantly gas-based, supported by reforming units integrated into refineries and ammonia plants. Electrolysis-based hydrogen contributes a limited but growing share, deployed where electricity access, cost stability and industrial integration support sustained utilisation.
From a production-cost perspective, hydrogen economics in India are shaped by natural gas pricing (domestic and imported), electricity tariffs, capital recovery requirements and plant efficiency. Output growth reflects industrial expansion, fertiliser demand stability and infrastructure readiness rather than hydrogen price fluctuations.
Industrial hydrogen overwhelmingly dominates India’s production allocation due to continuous demand from fertiliser and refining operations. These uses require high throughput, stable purity and uninterrupted supply, shaping plant design and maintenance strategies.
Hydrogen derivatives, particularly ammonia, structurally anchor hydrogen demand by embedding hydrogen into fertiliser supply chains that operate on long-term demand cycles.
SMR defines the backbone of India’s hydrogen production due to scale, maturity and integration with fertiliser and refining infrastructure. ATR is selectively relevant where efficiency improvements align with emissions management objectives.
Electrolysis-based hydrogen is deployed on a limited scale, primarily for industrial pilots and diversification, complementing reforming-based output rather than replacing it.
Fertiliser and refining applications establish the baseload for hydrogen production in India due to continuous demand and strategic importance. Steel and energy uses influence future allocation but do not yet define core capacity requirements.
From a production standpoint, close integration between hydrogen generation and consumption supports high utilisation rates and predictable operating regimes.
Hosts a large share of hydrogen production capacity, anchored by refineries, petrochemical complexes and fertiliser plants.
Supports hydrogen production linked to fertiliser manufacturing and chemical processing.
Emerging production clusters associated with refining capacity, port infrastructure and industrial expansion.
India’s hydrogen supply chain begins with natural gas procurement (domestic and LNG) and electricity sourcing, followed by hydrogen production, compression, limited storage and direct industrial consumption or ammonia conversion. Hydrogen transport is minimal due to co-location of production and consumption.
Cost drivers are dominated by gas pricing, electricity costs, plant efficiency and utilisation rates. Storage and logistics costs remain secondary, while ammonia conversion embeds hydrogen into established trade flows.
Pricing formation reflects energy input markets and long-term industrial contracts rather than hydrogen spot markets.
India’s hydrogen production ecosystem includes refiners, fertiliser producers, chemical manufacturers, steel companies, industrial gas suppliers, utilities and policymakers. The ecosystem is characterised by scale, demand stability and industrial integration.
Strategic priorities include ensuring feedstock security, optimising reforming assets, selectively integrating electrolysis, improving efficiency and aligning hydrogen production with fertiliser security and industrial growth objectives.
Hydrogen production in India in 2026 is estimated at approximately 5.5 to 6.5 million tonnes per year, driven primarily by fertiliser, refining and chemical manufacturing demand.
Production costs are shaped by natural gas prices, electricity tariffs, plant efficiency, capital recovery requirements and feedstock availability, with gas procurement remaining the dominant cost driver.
India’s hydrogen output is dominated by steam methane reforming (SMR) integrated with fertiliser and refinery operations, while electrolysis-based hydrogen plays a limited, complementary role.
Fertiliser production provides a stable, year-round demand base for hydrogen, supporting high utilisation rates and predictable output levels.
Constraints include gas supply variability, infrastructure limitations, capital intensity, grid reliability and the need to integrate new capacity within existing industrial systems.
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