India is making strong strides toward creating a thriving green hydrogen market, thanks to smart policies, rising investments, and early signs of competitive pricing. Rajesh Kumar Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX), shared this optimistic view during a chat on the sidelines of the World Hydrogen India Summit in New Delhi on Thursday.
Mediratta explained how new markets like green hydrogen kick off. “When a fresh commodity enters the picture, the first step is attracting investments through long-term contracts,” he said. Right now, those deals are starting to take shape, with growing demand from buyers and supply from producers. As the market expands, prices should drop over time, making green hydrogen more affordable.
He broke down the typical path for commodity markets, and hydrogen is following suit. It begins with one-on-one, long-term agreements—think monthly, six-month, or yearly deals. As trading volumes increase and more players join in, the focus shifts to shorter, more flexible options. That’s where exchanges like IGX come in, offering transparency, ease, and better price discovery. “Consumers want to buy for a day, a week, or a month based on their needs,” Mediratta noted.
Once a solid spot market forms, it paves the way for futures and derivatives, built on those reliable prices. IGX is digging into global examples to craft the perfect price benchmark for India’s green hydrogen. They’re looking at Europe’s models, such as Austria’s Green Hydrogen Index from the Central European Gas Hub (CEGH), Germany’s Hydrix on the European Energy Exchange (EEX), and the Netherlands’ High Clicks index. “Each uses a unique formula, and we’re figuring out what fits India best,” he added.
On the supply front, Mediratta highlighted India’s ambitious plan for 500 gigawatts of renewable energy, mostly from solar and wind. This will create plenty of extra power, especially during peak solar hours, ideal for producing green hydrogen through electrolysis. “Not all that surplus will stay in the grid,” he said. Turning it into hydrogen lets India store and even export the energy without threatening its own energy security.
Worried about water? Mediratta brushed that off. “We can desalinate seawater for hydrogen production—it’s sustainable and has no real limits,” he said.
Early market buzz is exciting, with recent tenders showing solid interest and improving prices. Green ammonia and green nitrogen are already fetching good rates, even if they’re not the cheapest yet. “The direction is positive,” Mediratta predicted. “In the next one to two years, prices will get competitive and market-friendly.”
Overall, Mediratta sees India charging ahead on green hydrogen. The ecosystem is advancing nicely in technology, policy, and market growth, setting the stage for a cleaner energy future.
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