INTERVIEW: Hydrogen push should not lose momentum once energy crisis cools - Hydrogen Association of India

Geopolitical tensions in the Middle East and the resulting volatility in energy markets have given renewed urgency to global conversations around energy security and alternative fuels. While fluctuations in crude oil prices may temporarily influence investment priorities, experts at Hydrogen Association of India believe the global hydrogen transition is being driven by much deeper structural forces that extend beyond short-term market cycles.

Platts recently spoke to Sachin Chugh, vice president of the Hydrogen Association of India, who said that hydrogen should not be viewed merely as a reaction to oil price volatility, but as a strategic pillar of future industrial and energy systems.

"Historically, periods of high crude prices have accelerated interest in alternative fuels. However, the long-term case for hydrogen today is far stronger than in previous energy transitions because it gets linked directly to the energy security and simultaneously complements industrial decarbonization, manufacturing competitiveness, and national sustainability goals," he said.

While conventional fossil fuels are expected to remain extremely important in the global energy mix for the foreseeable future, hydrogen is steadily emerging as a complementary energy vector, particularly for sectors that are difficult to electrify directly.

Experts at HAI acknowledge that green hydrogen currently faces economic and infrastructure-related challenges. Production costs remain higher than fossil-derived alternatives, and significant investments are required in storage, transportation, and distribution networks. However, similar challenges were also witnessed during the early phases of solar and wind deployment, where costs declined sharply with scale, policy support, and technological innovation.

"It is important to understand that energy transitions are evolutionary, not instantaneous. Hydrogen will scale progressively as infrastructure develops, demand aggregates, and technology matures," Chugh said.

The HAI expects the price of green hydrogen in India to drop to around $2/kg by 2030, Chugh said. Platts, part of S&P Global Energy, assessed India Renewable Hydrogen Term Contract at $3.227/kg or $28.3969/MMBtu on May 7.

Beyond climate commitments

For India, the hydrogen opportunity extends beyond climate commitments. With nearly 88% dependence on imported crude oil, diversification of the energy basket is increasingly being viewed as a strategic necessity for long-term economic resilience and energy independence.

The association believes India's immediate focus should be on developing a domestic hydrogen ecosystem through phased and practical adoption pathways.

One such approach could involve the production of hydrogen-derived e-fuels and their gradual blending with conventional fuels like gasoline or diesel, similar to the country's successful ethanol blending program. In its direct form, early applications could include blending hydrogen into gas distribution networks, deployment of hydrogen-enriched compressed natural gas (HCNG) based power generation and mobility solutions, and gradual expansion of its applications in domestic cooking systems.

"Blending in any form provides an effective transition mechanism. Even small percentages can help create demand visibility, enable infrastructure development, improve operational familiarity, and stimulate investments across the value chain," Chugh said.

Another critical area requiring attention is the development of globally harmonized hydrogen standards, including certification frameworks, carbon intensity definitions, and transportation protocols. Harmonization can play a vital role in enabling international trade, investor confidence, and scalability of projects.

Despite current cost barriers, there is growing optimism that green hydrogen economics will improve significantly over the coming decade due to declining renewable energy prices, electrolyzer manufacturing scale-up, localization, and supportive policy mechanisms.

India's green hydrogen production costs are expected to move steadily closer to global competitiveness by 2030, potentially positioning the country as both a major consumer and exporter of green molecules and derivatives such as green ammonia.

"The discussion should not be whether hydrogen replaces fossil fuels overnight. The real opportunity lies in building a balanced, resilient, and diversified energy ecosystem where hydrogen becomes an important contributor to industrial growth, clean mobility, and energy security," Chugh added.

As governments and industries navigate an increasingly uncertain geopolitical and climate landscape, hydrogen's role is expected to strengthen steadily, not merely because of temporary oil price fluctuations, but because of its long-term strategic relevance to the future global economy.