India on right track to build hydrogen market ecosystem: IGX CEO

New Delhi [India], September 25 (ANI): India is progressing steadily towards building a robust green hydrogen market, supported by policy direction, growing investment interest, and early price discovery, Rajesh Kumar Mediratta, Managing Director and CEO of Indian Gas Exchange (IGX), said on Thursday.

“When a new segment or new commodity is coming into the system, the first thing that happens is that you need investments in the sector and that comes only through long-term contracts. So this is what the process started,” he said on the sidelines of the World Hydrogen India Summit in New Delhi.

Mediratta outlined the natural evolution of commodity markets, stressing that hydrogen will follow a similar trajectory.

He said that those contracts are being initiated, some demand is coming in, and some supply is shaping up.

“As this will grow over a period of time, prices will start coming down,” he added

According to Mediratta, the development of a mature market typically starts with bilateral long-term agreements–monthly, six-month, or annual contracts. As volumes grow and market participation increases, the need for short-term and flexible trading arises. “That’s when exchange-based trading becomes relevant. Exchanges bring transparency, flexibility, and efficient price discovery. Consumers, for instance, want the option to buy for a day, a week, or a month, depending on their needs,” he explained.

Mediratta said that once a reliable spot market is established, the foundation is laid for futures and derivatives to develop around the discovered prices, further deepening the market. IGX is currently studying international models to help define a suitable price benchmark for green hydrogen in India.

He cited examples from Europe, including Austria’s Green Hydrogen Index from Central European Gas Hub (CEGH), Germany’s Hydrix benchmark on the European Energy Exchange (EEX), and the High Clicks index from the Netherlands. “Each model uses a different formula. We are analysing these to understand what would work best for India,” he added.

On the supply side, Mediratta noted that India’s planned 500 GW of renewable energy capacity, primarily solar and wind, would generate ample surplus electricity, especially during solar hours, which can be used for hydrogen production via electrolysis.

“This excess power won’t always be consumed within the grid. Producing hydrogen allows us to store and export that energy without any risk to India’s energy security,” he said. He also dismissed concerns about water availability, noting that seawater can be desalinated and used for hydrogen production, making it a sustainable option with no hard limits.

Mediratta said early signs in the market are encouraging, with recent tenders indicating strong interest and improving price discovery. “We are seeing good prices for green ammonia and green nitrogen. While these aren’t the lowest prices yet, the trajectory is promising. Over the next one to two years, we expect prices to become more competitive and acceptable to the market,” he said.

He concluded by stating that India is on the right path and that the hydrogen ecosystem is progressing well across all fronts, including technology, policy, and market development. (ANI)

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