- Green hydrogen prices in Q1’26 followed a firm global trend, supported by high renewable-energy-linked production costs and limited commercial-scale supply expansion.
- Feedstock pressure remained elevated due to renewable electricity, electrolyzer, storage, and infrastructure costs, while supply chain constraints kept production economics firm.
- Downstream demand improved steadily from refining, ammonia production, steel decarbonization, transport fuel, and industrial energy transition projects.
During Q1’26, green hydrogen prices remained firm as production costs and infrastructure requirements continued to outweigh the pace of supply expansion. Renewable electricity and electrolyzer economics remained the primary market drivers, while limited large-scale production capacity supported firm market sentiment. India’s green hydrogen transition accelerated through the National Green Hydrogen Mission, with approved electrolyzer manufacturing projects totaling about 1,500 MW, supporting future domestic production expansion. Demand remained steady from refinery integration, green ammonia production, steel manufacturing, industrial decarbonization, and mobility applications, while long-term offtake agreements continued supporting project development. Plant activity remained active during the quarter, with multiple hydrogen and electrolyzer projects advancing across Asia and Europe, including new electrolysis capacity developments and industrial hydrogen integration projects.
