Pdfs 1696407815-GREEN HYDROGEN IN INDIA 2023 Report

For Internal Use of GAIL.
Green Hydrogen in
India 2023
Policies, Projects and Outlook
June 2023
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© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

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Contents
Summary and Key Insights 4
1 Market Size and Growth Drivers 7
2 Policy and Regulatory Developments and Outlook 18
3 Major Players 34
4 Projects and Case Studies 47
5 Technology Trends 60
6 Cost of Production and Investments 73
7 Future Outlook and Projections (Till 2070) 83
8 Industry Insights 88
Dataset
List of Acronyms

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Summary and Key Insights

4

Market Size and Emerging Landscape
• The total hydrogen consumption in India is 8.1 MTPA. This includes domestic hydrogen consumption (6 MTPA), hydrogen consumption
in imported fertiliser (1.2 MTPA), hydrogen consumption in imported ammonia (0.5 MTPA), hydrogen consumption in imported
methanol (0.4 MTPA). Major part of hydrogen in India is produced through steam methane reforming and mainly used in the fertilizer
(48%) and refinery sectors (46%).
• India has set a target to produce 5 MMT of green hydrogen annually by 2030 (short-term) with an associated renewable energy
capacity addition of about 125 GW by 2030. NITI Aayog’s vision is to have ~13 MTPA green hydrogen production in India by 2030 for
domestic and export markets.
Policy Framework and Roadmap
• The Indian government officially greenlit the National Green Hydrogen Mission in January 2023 along with the associated budget outlay
of Rs 197.44 billion. This includes an outlay of Rs 174.9 billion for the SIGHT programme, Rs 14.66 billion for pilot projects, Rs 4 billion
for R&D, and Rs 3.88 billion towards other mission components.
• The key mission outcomes projected by 2030 are as follows. Production capacity (at least 5 MMT per annum scalable to 10 MMT),
associated renewable energy capacity (125 GW), associated electrolyser capacity (60 to 100 GW), total investments (Rs 8 trillion), job
creation (over 0.6 million), reduction in imports (over Rs 1 trillion), greenhouse gas reduction (nearly 50 MMT annually).
• Further, other various central government initiatives have been announced including ISTS-waiver for green hydrogen projects and
incentives for green hydrogen production and electrolyser manufacturing. State level policies have been announced in Uttar Pradesh,
Gujarat, Odisha, Karnataka, Rajasthan, Madhya Pradesh, Kerala and Punjab.
Technology Trends
• The global electrolyser capacity in 2023 is 21.5 GW/year, according to IEA. In 2030, it is expected to reach 61.3 GW/year. The current
electrolyser manufacturing capacity in India is 0.5 GW/year and is expected to grow to just 2.5 GW/year by 2030. However, according
to India Infrastructure Research at least 10.9 GW of electrolyser manufacturing capacity is under various stages of development.
• Even a minimum of 10.9 GW of electrolyser manufacturing capacity is insufficient to meet the target of 5 MMT/per annum of green
hydrogen production by 2030. According to India Infrastructure Research, to meet this demand around 48 GW of electrolyser capacity
will be needed.
• Going forward, faster expansion of domestic manufacturing can be expected given that the MNRE has recently unveiled a Rs 174.90
billion incentive scheme for manufacturing of electrolysers and production of green hydrogen.

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Cost of Production and Investments
• With an expected price decline for both electrolysers and renewables, NITI Aayog’s analysis indicates that in the best- case scenario,
the cost of green hydrogen in India can fall to approximately $1.60/kg by 2030 and $0.70/kg by 2050.
• Green hydrogen can become competitive with grey hydrogen by 2030, if not earlier.
• The current cost of green hydrogen production is approximately $4-5 per kg. More than 50 per cent reduction in cost will be needed for
large scale adoption.
• Total capex required for electrolyser systems and solar power to produce green hydrogen is estimated to be $160 billion.
Major Players, Projects, and Case Studies

• Renewable energy developers (L&T, ReNew, Hero Future Energies, Reliance, Greenko, among others), oil and gas companies (Indian
Oil, GAIL, Adani, ONGC), automobile companies (Tata Motors, Toyota, Ashok Leyland) and industries (steel, chemicals, refineries,
fertilisers) have emerged as the early proponents and offtakers of green hydrogen in India.
• Case studies include ACME’s green hydrogen project, Bikaner; NTPC’s Simhadri green hydrogen microgrid and Kawas green hydrogen
blending project; L&T’s Hazira green hydrogen project; Oil India’s green hydrogen project, Assam; and GAIL’s green hydrogen project,
Guna.
Future Outlook (Till 2070)
• India Infrastructure Research carried out an analysis to project the future capacity outlook for green hydrogen market in India in two
scenarios. In the likely scenario, the green hydrogen market is expected to grow at a CAGR of 8.8% to reach 27.01 MMT of annual
production by 2050 starting from 5 MMT in 2030. Required electrolyser capacity is expected to be 48 GW by 2030, which is expected to
grow to 259.31 GW by 2050.
• In the optimistic scenario, the green hydrogen market is expected to grow from 10 MMT of annual green hydrogen production to 54.02
by 2050. The electrolyser capacity is expected to be 96 GW by 2030 and 518.62 GW by 2050.
• Based on projected green hydrogen and electrolyser growth, India Infrastructure Research estimates the required renewable energy
capacity to be 96 GW by 2030 in the likely scenario.
• According to the data tracked by India Infrastructure Research, Karnataka is expected to witness the highest capacity additions in the
green hydrogen space. Other top states would be Odisha, Gujarat, Andhra Pradesh and Rajasthan.

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1. Market Size and Growth Drivers

❖ Market Overview
❖ Hydrogen Demand and Supply Outlook
❖ Growth Potential
❖ Key Trends
❖ Key Areas of Application
❖ Potential Business Models
❖ Key Growth Drivers

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Market Size and Growth Drivers
Market Overview
Current Status and Market Size
• Owing to increasing renewable penetration in India, lowering costs of green technology and the global hydrogen demand scenario, the
green hydrogen segment and its derivatives have received a major fillip from the Indian government and the industry.
• Several policies, pilot projects, industry collaborations, targets and plans have been announced.
India has set a target to produce 5 MMT of green hydrogen annually by 2030 (short-term) with an associated renewable energy capacity
addition of about 125 GW by 2030.
Market Opportunity
Potential first movers Cost advantage
India spends more than $160 billion
Large industries like refineries, fertiliser Out of all hydrogen types, green hydrogen
annually on energy imports, a figure that is
units, chemical plants, steel and cement can become the most affordable owing to
expected to keep rising over the next 15
manufacturing units are expected to be the significantly low cost of renewables in
years. A green hydrogen economy cannot
early offtakers of green hydrogen followed India. By 2030, India might become the
only significantly lower these costs, but it
by city gas distribution systems and lowest-cost producer, lowering the cost of
can also help India cut its CO2 emissions
transport. green hydrogen to $1 per kg.
significantly.
Policy Initiatives
The government of India has launched a Industry interest
dedicated National Green Hydrogen
Both public and private sector players have
Mission to promote the uptake of green
jumped on the green hydrogen bandwagon
hydrogen at a pan-India level and create an
with massive projects in the pipeline in not
export hub. Further, waivers on ISTS
just green hydrogen production but also in
charges and incentives for green hydrogen
electrolyser manufacturing.
and electrolyser production have been
introduced.
Source: MNRE; IRENA 2020; NITI Aayog; TERI; Goldman Sachs; India Infrastructure Research

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Hydrogen Demand and Supply Outlook

Domestic Demand Outlook
Mandates, clusters, and corridors are the three key initiatives that NITI Aayog proposes to generate 4.2 to 5 MTPA of new domestic
demand by 2030.
Domestic green hydrogen consumption in 2030 estimated by NITI Aayog

(MTPA) ~60-65 GW electrolysers
Demand at Cost Parity
Mandates and VGF
2.5
1.2 0.4 0.1 0.1 0.1 1.7
1.2 0.5
Refinery Fertilizer Gas Blending HDV Steel Methanol Total
Refinery Fertilizer Gas Blending HDV Steel Methanol
•Potential mandates for •For import substitution •Hydrogen blending in city •NITI Aayog’s aspirational •Greening of existing steel •Boosting domestic
existing applications may mandates of 100% by gas distribution networks targets for HDV’s include plants. production and meeting
include corporate level 2030 may be proposed. may be subsequently 1,000 trucks, 50 boats, •Establishing new green demand through locally
mandates for refineries scaled up. and 10 aircrafts to be plants to cater to global produced methanol can
and import substitution piloted by 2030 with demand via exports. be explored.
mandates for fertilisers. •Blending of 10-20% may three hydrogen corridors.
be considered until 2030.
Source: NITI Aayog and RMI Analysis; MEC; India Infrastructure Research

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Hydrogen Demand and Supply Outlook

Domestic Supply Outlook
A goal of 13 MTPA green hydrogen production in India by 2030 for domestic and export markets has been set by NITI Aayog.
Domestic green hydrogen production (including exports) in 2030 estimated by NITI Aayog
Export (MTPA) ~160 GW electrolysers
Mandates and VGF

Demand at Cost Parity
9.1
4.5
2.5
1.3 3.4
1.2 0.7
0.5 1 1.7
0.4 0.1 0.1 0.1
Refinery Fertilizer Gas Blending HDV Steel Methanol Export Carriers Total
Fertilizer Steel Methanol Export Carriers
•Potential for ammonia •Establishing new green •Demand for marine fuel •New carriers of green
exports worth 25 steel plants with >20 is expected to rise hydrogen are likely to
million tonnes to rising MTPA capacity to cater globally. This will boost come up. If not,
green hydrogen to domestic and global methanol production ammonia may be the
markets such as the EU markets. and exports. chosen carrier to meet
and Japan. the expected demand
(41 GW)
Source: NITI Aayog and RMI Analysis; MEC; India Infrastructure Research

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Growth Potential
Current scenario
• With a domestic market (consumption and production) of 6 MTPA, India is one of the biggest users of hydrogen.
• The two industries with the highest utilisation are fertilisers (48%) and refineries (46%).
• Due to competitive prices (caused by the availability of cheap natural gas/coal), India imports 14.64 MTPA of fertilisers and 2.41 MTPA of
ammonia, largely from Saudi Arabia (0.72 MTPA), Qatar (0.46 MTPA), and Ukraine (0.25 MTPA).
Hydrogen consumption in India by sectors Cumulative hydrogen demand in India from domestic production and imports
(MTPA)
Fertiliser Refineries Domestic hydrogen consumption 6.0

48% 46%
Hydrogen consumption in imported fertilizers 1.2
Hydrogen consumption in imported ammonia 0.5

Steel Methanol Hydrogen consumption in imported methanol 0.4
5% 1%
Total hydrogen consumption 8.1
Future growth potential

• According to ADB estimates, hydrogen demand in India is predicted to expand 2.5-3.5 times by 2040; nonetheless, it is not expected to
supply more than 5% of India's total primary energy consumption by 2040.
• By 2035-2040, India's hydrogen market is expected to be worth $30-35 billion per year.
• By replacing fossil fuels in end-use sectors with locally produced hydrogen, India can save $15-20 billion per year on fossil fuel imports.
• Most of this demand is expected to be fulfilled by green hydrogen. According to TERI, by 2050, nearly 80 per cent of the hydrogen
produced in India is projected to be green hydrogen
Source: MEC; ADB; TERI

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Key Trends
Green hydrogen market is expanding rapidly, with Oil and gas players and renewable energy IPPs have
green ammonia emerging as the derivative of choice emerged as the first movers in the space setting up
due to its applicability. large projects.
While renewable energy is quite affordable,

India is likely to witness development of green
electrolyser costs remain high and there is
hydrogen clusters or hubs near high demand
significant focus on reducing this cost. There have
industrial centers and ports which would serve both
been many announcements from private players to
domestic and export demand. This would resolve
set up manufacturing facilities and there are plans
logistic challenges to a large extent.
to introduce incentives as well.
As solar is the most rapidly growing green source in

the country, most hydrogen projects are being
Early demand is expected to come from industries planned along with solar projects, while some are
like refineries, fertilizers, chemicals and planned with round-the-clock power projects that
manufacturing units. comprise renewables along with storage.
Meanwhile, bioenergy based hydrogen projects are
also being explored.
Source: India Infrastructure Research

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Key Areas of Application

Green hydrogen has the potential to play a significant role in several applications in India. Here are some areas where green
hydrogen is being explored for deployment:
Transportation: One of the key applications of green hydrogen is in the transportation sector. It can be used as a fuel for fuel cell electric
vehicles (FCEVs) or blended with natural gas to power hydrogen internal combustion engine vehicles (HICEVs). India is exploring the use of
green hydrogen in public transportation, including buses and trains, to reduce carbon emissions.
Power generation: Green hydrogen can be used in fuel cells to generate electricity. It can serve as a clean and reliable source of power,
especially for remote areas where grid connectivity is a challenge. Green hydrogen-based power generation can also help balance
intermittent renewable energy sources and provide energy storage solutions.
Industrial processes: Industries such as steel, cement, refineries, and chemicals rely heavily on fossil fuels for their energy requirements.
Green hydrogen can replace fossil fuels in various industrial processes, including heating, power generation, and feedstock for chemical
production. By using green hydrogen, these industries can reduce their carbon footprint and contribute to decarbonization efforts.
Energy storage: Green hydrogen can be utilized as a means of long-term energy storage. Excess renewable energy generated during periods
of high production can be used to produce hydrogen through electrolysis. This hydrogen can then be stored and later converted back into
electricity through fuel cells or combined with renewable natural gas.
Grid balancing: The intermittent nature of renewable energy sources can lead to imbalances in the power grid. Green hydrogen can be used
to store surplus electricity during periods of high renewable energy generation and provide power during low-generation periods. This can
help stabilize the grid and ensure a consistent energy supply.
Off-grid applications: Green hydrogen can be particularly beneficial for off-grid applications in rural areas that lack access to reliable
electricity. It can be used for decentralized power generation, lighting, cooking, and other energy needs, offering a clean and sustainable
energy solution.

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Key Areas of Application

Application of green hydrogen will be primarily sector-specific. These sectors may be the early adopters of green hydrogen, going forward.
The sector wise application opportunities have been outlined by NITI Aayog. These are:
Sector Applications
• Desulfurization of goods like diesel and petrol uses hydrogen principally.
Refining • Demand for petroleum products and strict legislative measures to control the sulphur content of petroleum
products both affect the demand for green hydrogen.
• Direct reduced iron (DRI) is reduced using either coal or natural gas on pelletized iron ore in an electric arc
Steel furnace or induction furnace (EAF/IF) for the production of steel. Green hydrogen might potentially take the
place of fossil fuels, primarily natural gas, in the DRI process.
• Currently, green hydrogen may be used to replace the majority of the natural gas-based hydrogen
Ammonia
feedstock used to produce ammonia.
• Methanol is generally used to make different chemicals and solvents, while its applications as a fuel for
transportation, maritime fuel, and cooking are also possible.
Methanol
• In India, hydrogen is currently produced mostly from natural gas, leaving a significant opportunity for the
adoption of green hydrogen. Hydrogen is a key feedstock in the manufacturing of methanol.
• The demand for green hydrogen for long-haul freight will rely on the transition to low-carbon
Long-Haul Freight and
transportation and how competitive various technology options are with diesel and with one another.
Heavy-Duty Vehicles
• Its adoption will be influenced by the benefits of the technology, time restraints for refuelling, efficiency
(HDVs)
factors, costs, and duty cycles.
• Demand for green hydrogen will increase as renewable energy penetration, the necessity for storage, and
grid stability all increase.
• Power-H2-power is a different way to offer storage and flexibility.
Power sector
• Due to falling costs for renewable electricity and electrolyser expenses, e-fuels like methanol and ethanol,
which can be combined with or entirely replace existing fossil fuels, can be produced at a lower cost soon,
outcompeting other production methods.
Source: NITI Aayog; India Infrastructure Research

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Potential Business Models
• Despite its great promise, green hydrogen still lacks well-established commercial models and conventional frameworks.
• However, as the market matures over the next few years and organisations gain a better understanding of project risks and
profit pools, they are expected to adapt their business models in order to capture more value and be profitable in the long run.
Current business models in green hydrogen production
Value Technology Supply

Project O&M; Asset
Chain Component EPC
Developer OEM Management
Steps Supplier
Specialist/ Pure Pure Pure Pure O&M Service Provider;

Pure Players Developer OEM Tier-1 EPC Asset Manager
Observed
Technology
Business Turnkey Technology Provider
Provider
Models
Solution
Integrated Solution Provider
Provider
Source: Roland Berger

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Potential Business Models

Going forward, there are several potential business models that can be undertaken within the sphere of green hydrogen:
Power-to-X (PtX) Applications:

Production and Distribution: Integrated Energy Companies:
Converting renewable electricity into other
This method prioritises streamlining the Utilising their knowledge, resources, and
energy sources or feedstocks is known as
hydrogen manufacturing process, ensuring clientele, businesses can create vertically
"power-to-X." As a flexible energy source,
efficient distribution, and creating integrated green hydrogen businesses that
green hydrogen is employed in this
relationships with stakeholders across the integrate green hydrogen production into
business model to create synthetic fuels,
supply chain. their operations.
chemicals, or other valuable products.
Storage and Transportation:

Hydrogen Fueling Infrastructure:
This entails the construction of hydrogen
In this model, hydrogen fuelling stations
storage facilities, such as compressed gas
are built and run for hydrogen-powered
storage or underground caverns, as well as
cars. Accessible refuelling infrastructure
the infrastructure for transporting
will be necessary as the use of fuel cell
hydrogen, such as pipelines, vehicles, or
vehicles grows.
ships.
The specific type of project will define the most profitable firm strategy in the future
Source: Roland Berger; India Infrastructure Research

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Key Growth Drivers

Several drivers are pushing the development and adoption of green hydrogen in India. These drivers include:
Falling cost of
renewables
India has some of the Industry interest
Scalable technologies
lowest renewable Government initiatives Interest in hydrogen is
Many of the components
generation costs, with In India, the government now widespread in both
in the hydrogen value
both solar PV and is shifting focus towards public and private
chain have already been
onshore wind among the green hydrogen institutions. Thus, many
deployed on a small
cheapest in the world. production through the players have also created
scale and are ready for
Due to falling costs of recently announced partnerships and
commercialisation, now
renewable energy, hydrogen mission and ongoing initiatives to
requiring investment to
addressing export other policy drivers. foster collaboration and
scale up.
demand may also co-ordination of efforts.
become feasible in the
future.
• Despite the positive drivers, it is essential to lower costs in order to take advantage of the opportunities that could arise.
• Focusing on domestic demand generating initiatives, cost-cutting measures, early pilots, and competitive electrolyser manufacturing are
essential.
• Early market development should concentrate on identifying clusters of industrial demand that could be satisfied by localised hydrogen
generation.

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2. Policy and Regulatory Developments and

Outlook
❖ Green Hydrogen Policy
❖ National Green Hydrogen Mission
❖ Incentive Scheme for Electrolyser Manufacturing
❖ Incentive Scheme for Green Hydrogen Production
❖ ISTS Waiver for Green Hydrogen Projects
❖ Other Central Level Policy Initiatives
❖ State Level Policies and Initiatives
❖ Key Alliances and Collaborations
❖ Issues and Concerns
❖ Policy and Regulatory Outlook

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Policy and Regulatory Developments and
Outlook
Green Hydrogen Policy

• The Prime Minister launched the National Hydrogen Mission on India’s 75th Independence Day (i.e. 15th August, 2021). This will help in
meeting the target of production of 5 MMT of green hydrogen by 2030 and the related development of renewable energy capacity.
• In line with India’s National Green Hydrogen Mission, the country has framed a Green Hydrogen Policy in February 2022. This was the
first phase of the policy.
• The policy was launched by the Ministry of Power with a vision to assist India in meeting its climate commitments and ensuring
seamless implementation of the National Green Hydrogen Mission.
• Further, the policy aims to create export opportunities for green hydrogen and its derivatives, reduction on imported fossil fuels and
feedstock, development of indigenous manufacturing capabilities and supporting research and development for projects.
Policy highlights
Developing renewable energy Single Portal Waiver of ISTS charges

capacity A single portal for carrying out The Indian government has
Green hydrogen or ammonia all the activities including extended a waiver of transmission
manufacturers may purchase statutory clearances in time fees for renewable power to
renewable power from power bound manner will be set up by green hydrogen production plants
exchange or set up renewable Ministry of New and commissioned as of December 31,
energy capacity. Renewable Energy (MNRE) 2030.
Open access and banking Storage

Distribution licensees
Open access to be granted within
Distribution licensees can also Manufacturers of green
15 days of receipt of application.
purchase and supply renewable hydrogen/green ammonia will be
The manufacturer can bank his allowed to put up bunkers near
energy to green hydrogen and
unconsumed renewable power, up ports to store green ammonia for
green ammonia manufacturers in
to 30 days with the discom. export and use by shipping.
their states at reduced prices.
Source: Ministry of Power

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Outlook
National Green Hydrogen Mission

• The Indian government officially greenlit the National Green Hydrogen Mission in January 2023 along with the associated budget outlay
of Rs 197.44 billion.
• The mission has been proposed to be implemented in a phased manner and the official mission document was launched in January
2023.
Mission outcomes Mission phases

Mission outcomes projected by 2030: • Phase I will concentrate on developing demand while ensuring enough
Phase 1 supply by increasing domestic electrolyser production capacity.
• Production capacity: At least 5 MMT • Providing necessary research and development (R&D).
per annum scalable to 10 MMT (2022-23 to
• Pilot projects will be launched to kick-start the green transition in steel
• Associated renewable energy 2025-26)
production, long-haul heavy-duty mobility, and shipping.
capacity: 125 GW • Expected to drive down costs
• Associated electrolyser capacity: 60
to 100 GW
• Total investments: Rs 8 trillion • The potential for commercial scale green hydrogen-based initiatives in
• Job creation: Over 0.6 million jobs Phase 2 steel, transportation, and shipping sectors will be investigated.
• Reduction in imports: Over Rs 1 (2026-27 to • Pilot projects in industries such as railways, aviation, and many more.
trillion 2029-30) • R&D operations will be expanded.
• Greenhouse gas reduction: Nearly 50 • The second phase activities would increase penetration across all viable
MMT annually sectors.
Budgetary allocation • The National Green Hydrogen Mission has been given a budget outlay of Rs 197.44 billion
for the Mission • An outlay of Rs 174.9 billion for the SIGHT programme, Rs 14.66 billion for pilot projects, Rs 4 billion
for R&D, and Rs 3.88 billion towards other Mission components.
Source: Ministry of New and Renewable Energy; Nation Green Hydrogen Mission document

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Outlook
National Green Hydrogen Mission

The Mission is expected to promote the deployment of the green hydrogen ecosystem and to open up prospects for innovation and investment
along the green hydrogen value chain, resulting in investments, jobs, and economic growth.
Mission components Governance framework

Empowered Group: Chaired by
Demand Creation Incentivising Supply Key Enablers Cabinet Secretary. The role of this
group is to provide guidance and
• Research and strategic direction.
Mission focuses on
development
demand creation Strategic interventions
• Resources in the
through: with direct financial
form of Advisory Group: Chaired by
• Creation of export incentives for:
renewables, grid, Principal Scientific Advisor.
markets This will have experts from
water and land
• Substituting • Electrolyser academia, industry and give
• Reforms for ease
imports in manufacturing advice.
of doing business
fertilisers and • Green hydrogen
• Infrastructure
fossil fuels production
supply chains
• Creating domestic Mission Secretariat:
• Regulations and
demand using Headquartered in MNRE and
standards headed by Mission Director.This
multiple sectors.
• Skill development will be responsible for managing
the programme.
The Mission also seeks to minimise various risks through an appropriate mix of financial and non-financial levers, and review mechanisms. Risk
mitigation measures have been identified for strategic risks, technological risk, operational/project level risks and financial and market risks.
MNRE has framed model guidelines for transparent competitive bidding for procurement of green hydrogen and its derivatives. A suitable
regulatory framework for certification will also be developed.

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Outlook
Incentive Scheme for Electrolyser Manufacturing

On June 28, 2023, MNRE released its scheme guidelines for implementation of "Strategic Interventions for Green Hydrogen Transition (SIGHT)
Programme - Component I: Incentive Scheme for Electrolyser Manufacturing“. These incentives are intended to promote quick scale-up,
technological advancement, and cost reduction for electroloysers in India. The financial outlay for the scheme is Rs 44.4 billion. The programme
will be implemented from 2025-26 to 2029-30.
Scheme Layout
Objectives of Scheme • The scheme would give funding for electrolyser manufacturing in the form of ‘Rs per kW’
Increasing capacity • According to manufacturing capability, the base incentive will begin at Rs.4,440/kW in the
Lower levelised cost
for indigenous first year and subsequently decrease on an annual basis.
of green hydrogen
electrolyser
production • The incentives suggested under this programme will be available for 5 years from the start
manufacturing of electrolyser manufacturing.
Year of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Product performance
Increasing the
and quality which
domestic value Base incentive available (Rs 4,440 3,700 2,960 2,220 1,480
are globally
addition per kW)
competitive
MNRE will solicit proposals for competitive selection through the Solar Energy Corporation of
Supporting existing India (SECI). Bidders will be expected to provide the following information:
and emerging
technologies • Annual manufacturing capacity for which an incentive is being sought.
• Committed Specific Energy Consumption (SEC) of the electrolyser produced each year over
five-year period.
• Committed Local Value Addition (LVA) on an annual basis for 5 years.
MNRE will implement the scheme through SECI as the 'Implementing Agency'. SECI will be responsible for secretarial, management, and
implementation assistance, as well as other duties as allocated by MNRE from time to time.
Bids in the first tranche of 1,500 MW will be called in two separate buckets. Bucket 1 comprises capacity of 1,200 MW for electrolyser
manufacturing based on any stack technology. Bucket 2 comprises capacity for 300 MW for electrolyser manufacturing capacity based on
indigenously developed technology.
Source: Ministry of New and Renewable Energy; Incentive scheme document

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Outlook
Incentive Scheme for Green Hydrogen Production

On June 28,2023, MNRE notified its scheme guidelines for implementation of "Strategic Interventions for Green Hydrogen Transition (SIGHT)
Programme - Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1)" of the National Green Hydrogen Mission. The
scheme has a budget outlay of Rs 130.5 billion and will be implemented from 2025-26 to 2029-30.
Guiding principles under scheme Capacities for bidding under Tranche 1

Technology Biomass based
Agnostic Pathways pathways
• A direct incentive in terms of ‘Rs per kg’ of green hydrogen
(Bucket I) (Bucket II)
production will be paid under the scheme for a period of three years
from the date of beginning of green hydrogen production. Total capacity 410,000 MT per 40,000 MT per
• Beneficiaries of the scheme will be chosen through a competitive available for the annum of green annum of green
process. bidding hydrogen hydrogen
Eligibility for incentives Incentives capping
Incentives capped
To be qualified for the scheme's incentives, the bidder must ensure green Year
(in Rs per kg)
hydrogen production in compliance with the comprehensive
requirements outlined in the "National Green Hydrogen Standard" as
Rs 50 per kg First year of production
notified by the MNRE.
In circumstances where the end-product is a green hydrogen derivative, Rs 40 per kg Second year of production
such as green ammonia, the incentive would be dependent on the
amount of green hydrogen (in kg) used to make the given amount of the Rs 30 per kg Third year of production
derivative.
MNRE will implement the scheme through the SECI as the 'Implementing Agency'. SECI will be responsible for secretarial, management, and
implementation assistance, as well as other duties as allocated by MNRE from time to time.
A Scheme Monitoring Committee (SMC) under the chairmanship of Secretary MNRE, comprising representatives from MNRE, SECI and experts
from other organisations shall periodically review the status of implementation and performance of green hydrogen manufacturing capacities
under the scheme.

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Outlook
ISTS Waiver for Green Hydrogen Projects

• The green hydrogen policy that was notified in February 2022 provided a waiver of ISTS charges for a period of 25 years to the manufacturers of
green hydrogen and green ammonia for the projects commissioned before June 30, 2025.
• The latest notification released in May 2023 allows a complete waiver of ISTS charges for a period of 25 years from the date of commissioning of
the project for green hydrogen or green ammonia production units commissioned on or before December 31, 2030. Thus, the new notification
extends the waiver applicability by five and a half years for green hydrogen projects.
• Green hydrogen/green ammonia plants commissioned on or before December 31, 2030, and which use renewable energy from solar, wind, large
hydropower plants commissioned after March 8, 2019, or energy storage systems (ESS) or any hybrid combination of the aforementioned
technologies, shall be exempt from ISTS charges for a period of 25 years.
• Drawee entities, including green hydrogen/green ammonia plants and distribution companies that contract energy (or capacity) from an ESS
project will be exempted from ISTS charges if they draw a minimum of 51% of the annual energy contracted with or consumed from ESS as
renewable energy.
• The waiver shall be allowed only for ISTS charges but not for ISTS losses.
• Graded ISTS charges for green hydrogen projects are meant to address the expected challenges related to cost and offtake on a long-term basis
and provide a filip to these emerging areas of opportunity.
Trajectory for ISTS waiver of green hydrogen and green ammonia projects
Period of commissioning of green hydrogen/ green ammonia plants Applicable ISTS charges
December 31, 2030 to December 31, 2031 25% of the applicable ISTS charges
After December 31, 2033 100% of the applicable ISTS charges
Source: Ministry of Power

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Outlook
Other Central Policy Initiatives

In addition to the National Green Hydrogen Mission and Green Hydrogen Policy, the central government has undertaken many other policy
initiatives to give a boost the green hydrogen sector.
Actively implemented Under implementation
Green hydrogen hubs Open access Incentive scheme for electrolysers
Guidelines and tenders
The Indian government has As per MoP, there shall be a In June 2023, MNRE released In June 2023, MNRE notified
identified ten potential states uniform renewable purchase a framework document capacities for its upcoming
that might be significant obligation (RPO), on all highlighting incentive tenders in the green hydrogen
enablers in creating green obligated entities in area of a schemes for manufacturing of space in its scheme guidelines
hydrogen in India to jumpstart distribution licensees. It has electrolysers and production documents for the SIGHT
its National Green Hydrogen also included the green of green hydrogen in the Programme under the
Mission. hydrogen/green ammonia for country with total financial Mission.
fulfilment of its RPO . outlay of Rs 174.9 billion
The states include Karnataka, The Indian government will
Odisha, Gujarat, Rajasthan, Cross subsidy surcharge and soon notify detailed tenders in
Maharashtra, Tamil Nadu, additional surcharge shall not this space and would push the
Andhra Pradesh, Kerala, be applicable if green energy is green hydrogen production
Madhya Pradesh, and West utilized for production of green and electrolyser
Bengal. hydrogen and green ammonia. manufacturing in the country.
Refineries identified under the Mission
Green hydrogen capacity Green hydrogen capacity

CPSU State CPSU State
(kilo tonnes per annum) (kilo tonnes per annum)
IOCL Haryana 7 NRL Assam 5
BPCL Madhya Pradesh 10 MRPL Karnataka 0.5
HPCL Andhra Pradesh 7.3 CPCL Tamil Nadu 1
Source: Government notifications

25
Outlook
State Level Policies and Initiatives

• In October 2022, Uttar Pradesh launched its ‘Uttar Pradesh Green Hydrogen Policy 2022’. The policy aims to
support production, consumption, market creation, and other elements across the green hydrogen and green
Uttar Pradesh ammonia value chain.
• The policy has an operative period of five years with emphasis on ease of doing business for setting up and
promoting investments, encouraging innovation and advance infrastructure development to promote emergence
of new manufacturing units and hydrogen valleys.
• It aims to reduce green hydrogen cost to $2 per kg in the policy period and make efforts to decline it further to $1
per kg in long-term.
• It further plans to achieve 20 percent green hydrogen blending in total hydrogen consumption of the state by 2028
for existing fertiliser and refinery units, reaching 100 percent by 2035.
• The state also intends to set up state centre of excellence to lead research, development, and techno-economic
innovation activities.
• The policy includes a framework using 6 ‘I’ principles of Intent, Investment, Innovation, Infrastructure,
Inclusiveness, and Integration.
Six principles of Uttar Pradesh’s framework for green hydrogen/ammonia
INNOVATION
The state shall
INVESTMENT INTEGRATION
INTENT promote INFRASTRUCTURE INCLUSIVENESS
The state shall innovation to The state shall ensure a
The state shall keep The state shall The state shall
promote investment bring down costs seamless flow of
the purpose of ‘Sabka support the ensure a just
through a conducive and build trust communication,
Sath, Sabka Vikas, and infrastructure transition, providing
business ecosystem among collaboration and
Sabka Vishwas’ a development to new green
for the private stakeholders for integration of different
priority, along with the make the green employment
vision and objectives players across the adopting green government
hydrogen/ hydrogen/ammonia opportunities and
described in this green departments and other
ammonia. economy a reality. benefits to
policy. hydrogen/ammonia stakeholders for its
vulnerable end
value chain integration with state’s
consumers.
clean energy
transition.
Source: Government notifications; India Infrastructure Research

26
Outlook

In June 2023, Andhra Pradesh notified its Green Hydrogen and Green Ammonia Policy-2023. The key features of the policy
Andhra Pradesh are:
• Production capacity: 0.5 MTPA of green hydrogen and 2 MTPA of green ammonia
• Job creation: Over 12,000 jobs
• Policy period: 2023-2028
• Nodel Agency: The New and Renewable Energy Development Corporation of Andhra Pradesh
• SGST: Developers will get a five-year 100% reimbursement of net State Goods and Services Tax (SGST) on green
hydrogen and green ammonia sales.
• Land-use conversion charges and stamp duty payment: 100% exemption for green hydrogen/green ammonia
projects
• Electricity duty: Renewable energy used to produce green hydrogen/green ammonia will be exempted from
electricity duty for five years, beginning with the project's commercial operation date.
• ISTS charges: The policy offers for a 25% reimbursement of ISTS charges for five years from the date of
commissioning for power obtained from renewable energy sources (with or without storage) located in the state, up
to a maximum of one million MW/year of installed electrolyser capacity.
• Cross-subsidy surcharge: The cross-subsidy fee will be reimbursed for energy taken from renewable projects located
inside the state to produce green hydrogen and green ammonia for five years from the date of commissioning.
• Grid connectivity: Priority will be given to grid connectivity to the ISTS charges at the generation and production end
of renewable projects.
Incentives for solar, wind, or wind-solar hybrid projects will be available for similar projects that generate green hydrogen
or green ammonia.
Green hydrogen demand in the state is currently around 0.34 MTPA, mostly used in nitrogenous fertilisers, and 0.13 MTPA
in the refinery sector.
The nodal agency will lease government land for the development of renewable energy projects as well as green
hydrogen/green ammonia plants at a lease cost of Rs 31,000 /acre/year, with a 5% increase every two years during the
project period.

27
Outlook

• As per notification in May 2023, Gujarat Urja Vikas Nigam (GUVNL) is currently working on formulating a draft green
Gujarat hydrogen policy to promote and enable development of green hydrogen projects in the state. The guidelines by the
relevant ministries will be followed while making the policy.
• Furthermore, in May 2023, Gujarat’s state revenue department published its policy for allocating government
wastelands to enterprises that want to manufacture green hydrogen, or hydrogen produced using renewable energy.
The Gujarat government has already inked Memorandums of Understanding (MoUs) with five major corporations for
the allocation of large tracts of government land for future green hydrogen projects.
• Such enterprises will be leased government wasteland for 40 years. The state will also provide them with the same
incentives as other renewable energy projects such as wind, solar, and wind-solar hybrid.
• As per Odisha Renewable Energy Policy 2022, the state government is in process of establishing green hydrogen/
Odisha green ammonia hubs to meet the demand of sectors like petrochemical fertiliser steel industry, long haul transport,
city gas distribution and export. The incentives and concessions for green hydrogen/green ammonia projects will be in
accordance with the national green hydrogen policy.
• GRIDCO/distribution companies will supply renewable power for green hydrogen production at cost + margins
determined by Odisha State Electricity Regulatory Commission (OERC).
• The banking charges for the production of green/green ammonia will be determined by OERC in line with the green
hydrogen policy.
• As per the notification released in October 2022, the Karnataka state government is planning to set up a green
Karnataka hydrogen cluster in Mangalore.
• Seven companies like ACME Solar, ABC Cleantech, ReNew Power, Avaada, JSW Green Hydrogen, PETRONAS Hydrogen
and O2 Power showed interest to invest in the state for green hydrogen manufacturing.
In the conference hosted by Renewable Watch, Anil Dhaka, Managing Director, Rajasthan Renewable Energy Corporation
Rajasthan
stated that the Rajasthan government is working on the draft of the state green hydrogen policy. The policy will be soon
launched and implemented in the state for boosting the green hydrogen sector.

28
Outlook

Madhya • As per Madhya Pradesh Renewable Energy Policy 2022, production of green hydrogen and electrolyser manufacturing shall
Pradesh be categorised as 'Industry'. Green hydrogen production and electrolyser manufacturing units commissioned on or before
March 31, 2027 shall be eligible to avail following benefits.
• Production of green hydrogen using electrolysis process or any other commercial process that uses renewable energy is
eligible to avail general incentives as per respective policy of Industry/MSME Department based on investment size if the
investment is less than Rs 500 million. With investment size more than that, it is eligible to avail special incentives
earmarked for renewable energy equipment manufacturing sector under Industrial Promotion Policy.
• Electrolyser manufacturing units using renewable power for manufacturing of electrolyser are eligible to avail general
incentives as per the investment criteria aforementioned.
• Electrolyser manufacturing units using non-renewable power for manufacturing of electrolyser are eligible to avail general
incentives as per respective policy of Industry/ MSME Department based on investment size.
Kerala • In May 2023, Kerala Draft Green Hydrogen Policy, 2023 has introduced several features to incentivise the uptake of green
hydrogen including features such as open access, exemption from different charges, RPO compliance, creation of land
bank amongst many others.
• In February 2023, the Kerala government announced a Rs 2 billion scheme to develop green hydrogen hubs in Trivandrum
and Kochi. This scheme has been announced for viability gap funding, grant, and equity support to establish green
hydrogen hubs over the next two years. The state has envisaged proposal to establish Kochi Green Hydrogen Hub by India
Hydrogen Alliance.
• In April 2023, the Department of Science and Technology, Ministry of Science and Technology, invited proposals to set up
hydrogen valleys under Mission Innovation scheme to demonstrate how the entire value chain of hydrogen. Kerala aspires
to develop two green hydrogen valleys in Kochi and Thiruvananthapuram.
• The state is also actively exploring partnership with Hamburg Port Authority to set up a hydrogen hub at Kochi.
• Additionally, the state is exploring possibility of using peat gas for conversion to grey hydrogen or power generation with
carbon capture technology.
Punjab In May 2023, the Department of New and Renewable Energy Sources, Government of Punjab announced its plan to establish
the state green hydrogen policy soon. The policy will be helpful for the state to increase its share of generating and
consuming renewable power.

29
Outlook
Key Alliances and Collaborations

In order to increase the uptake of green hydrogen in the country, the Indian public and private sector has been collaborating at global level for
technologies and resources.
India Hydrogen Alliance
• India Hydrogen Alliance (IH2A) is a member-driven coalition, without legal entity, led by a Steering Group and Work Group leads. Chart
Industries, Reliance Industries Limited (RIL) and JSW Steel are the IH2A Steering Group members.
• IH2A’s public position on the development of a domestic hydrogen supply chain is articulated by its Steering Group and six Workgroups that
focus on the hydrogen supply chain and use-cases for hydrogen.
• IH2A has a three-tier membership structure to facilitate collaboration between industry players through the IH2A workgroups and the Steering
Group.
• In February 2023, the European Investment Bank (EIB) has formally agreed to join the India Hydrogen Alliance (IH2A) and increase its support
for large-scale green hydrogen hubs and projects across India with indicative funding of €1 billion.
Major partnerships and alliances of Indian government with other nations

India and Italy India and Denmark India and Germany
India and Italy will develop India and Denmark agreed • The Department of Science and Technology (DST) and Germany’s
partnerships in key renewable to initiate joint research and Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) have
energy sectors such as green development on green fuels signed a letter of intent to work together on hydrogen and other clean
hydrogen, biofuels, and energy including green hydrogen, technologies. The collaboration intends to integrate interventions with
storage. As part of their efforts during the Joint S&T indigenous technologies and deploy them for Indian conditions.
to strengthen their partnership Committee meeting in • This association is expected to result in higher Technology Readiness
in the energy transition, both January 2022. The Joint Level for DST-enabled hydrogen energy clusters, as well as the
countries decided to investigate Committee emphasised on identification of existing technologies and potential Fraunhofer
the development of green development of bilateral interventions in green hydrogen.
hydrogen, the establishment of collaboration on mission-
renewable energy corridors, and driven research, innovation, India and France
collaborative initiatives in the and technology Indo-French Roadmap on the Development of Green Hydrogen has been
natural gas sector. development. announced. It aims to bring the French and Indian hydrogen ecosystems
together in order to establish a reliable and sustainable value chain for
Source: Various notifications; India Infrastructure Research decarbonised hydrogen.

30
Outlook
Key Alliances and Collaborations

India and the UK
• India and the United Kingdom will pool their resources to invest up to $100 million in sustainable development and climate change initiatives.
• The UK-India Green Hydrogen Hub is a collaboration of UK and Indian research groups and innovators to advance science and innovation, as well
as to accelerate and strengthen the role of hydrogen in the UK and India's decarbonisation journeys.
• Bilateral platform for the academic community to improve understanding of the ongoing research and innovation in the sector in UK and India,
India and the EU
• The European Union (EU) and India have set ambitious programmes and targets for a wider adoption of green hydrogen.
• The EU and India share a great interest in green hydrogen, from its energy security elements to the development of safe supply chains and
competitive, rules-based marketplaces.
India and the US
• A US-India Hydrogen Task Force has been established by the US Department of Energy, India’s MNRE, and the US India Strategic Partnership
Forum
• This is part of the United States-India Strategic Clean Energy Partnership (SCEP).
India and Japan

• On March 19, 2022, Japan and India announced the "India-Japan Clean Energy Partnership (CEP)" to coincide with Prime Minister Kishida's visit to
India.
• The partnership intends to foster Japanese-Indian energy cooperation through diversified energy transitions that use all energy sources and
technologies to provide energy security, carbon neutrality, and economic prosperity.
• The specific areas of cooperation includes clean energy through green hydrogen/ammonia.
India and France
Indo-French Roadmap on the Development of Green Hydrogen has been announced. It aims to bring the French and Indian hydrogen ecosystems
together in order to establish a reliable and sustainable value chain for decarbonised hydrogen.
In addition, the Quadrilateral Security Dialogue (Quad), between Australia, India, Japan, and the United States announced the Clean-Hydrogen
Partnership for technology development, efficiently scaling up clean hydrogen production, and accelerating trade in clean hydrogen in the Indo-
Pacific region.
Source: Various notifications; India Infrastructure Research

31
Outlook
Issues and Concerns

Green hydrogen holds significant potential as a clean and sustainable energy fuel. However, there are several challenges that need to be addressed
for the widespread adoption of green hydrogen in India.
Infrastructural Development Technological advancements Costs

It is important to improve the
India currently has little Green hydrogen production is
efficiency and effectiveness of
infrastructure for green hydrogen currently very expensive. The cost
electrolysis technology.
generation, storage, and of renewable energy sources,
Electrolyser and catalyst
distribution. To make a robust electrolysis technology, and
advancements can help cut costs,
hydrogen infrastructure network, infrastructure for hydrogen
increase efficiency, and improve
pipelines and storage facilities are storage and transportation needs
performance of green hydrogen
required. to be reduced.
production
Policy Gap Skill Development Absence of clear terminology
There is lack of clarity on

To raise awareness and grow Lack of clear definitions makes it
contractual arrangements and
knowledge in the field of green difficult for the stakeholders in
offtake arrangements. Further, a
hydrogen, training programmes project planning. Lack of standards
single-window clearance
and educational efforts must be and guidelines adds on to
mechanism is required to avoid
implemented. challenges faced by the industry.
complicated approval processes.
Global competition Long-term contracts and price

Green hydrogen is attracting a lot
Project developers must establish
of interest around the world and
long-term offtake contracts and
several governments have
price agreements to secure
introduced fiscal incentives to
investments and assure financial
bring down its costs. In this
viability of projects. However,
regard, India is competing with
uncertainties can make long-term
numerous other countries for a
contracts difficult to negotiate.
significant place in market.

32
Outlook
Policy and Regulatory Outlook

In order to boost the green hydrogen sector in India, following key measures at a policy and regulatory level can be deployed to accelerate its
domestic production and export potential.
• For viability of green hydrogen, one of the major roadblocks is high cost of electrolysers.
Incentives for local • Thus, investments are required in the research, development, and commercialisation of low-cost electrolyser
manufacturing of technologies that use few rare earth metals.
electrolysers • Establishment of supply chain of metals and minerals with a focus on electrolyser recycling mechanisms is
critical.
• Though, scheme guidelines for domestic manufacturing of electrolysers has been launched by the Indian
government, a lot potential is yet to be tapped in this space.
• Mechanisms such as carbon prices can aid in accelerating market development.

Regulatory support • Non-financial initiatives such as streamlining the regulatory clearance procedure and preferential treatment
in public tenders.
• Clear guidelines for offtake need to be formulated and contractual provisions need to be established.
• There needs to be clarity with regards to definitions, standards for handling and storage.
• The challenges related to grid and land that impact renewable energy developers also need to be addressed
as renewables form an integral part of the entire green hydrogen ecosystem.
Open access and

banking regulations While the central government announced a waiver of inter-state transmission prices for green hydrogen projects,
across states states' support for intra-state wheeling and transmission charges, as well as time-bound approval of open access
and provision for energy banking, remains critical.
Green hydrogen Notification of clear mandates indicating minimum green hydrogen consumption by consumers in various sectors
purchase obligation will provide a boost to green hydrogen consumption.
norms
Source: ICRA; India Infrastructure Research

33
3. Major Players
❖ Plans of Key Players
• Renewable Energy Developers
• Oil and Gas Companies
• Automobile Companies
• Industries
❖ Recent Tenders

34
Plans of Key Players
Key Recent Developments

Renewable energy developers, oil and gas companies, automobile companies and industries have emerged as the early proponents and
offtakers of green hydrogen in India. In this section, we highlight the major developments and announcements by the key players in this
space.
Renewable Energy Developers
• In June 2023, NTPC partnered with Ohmium for polymer electrolyte membrane (PEM) electrolysers to boost green
hydrogen production.
• In May 2023, NTPC began work on a hydrogen hub in Andhra Pradesh at Pudimadaka with an initial capacity of 1,500
tonnes per day. Previously, NTPC announced its plan to set up a new energy park at Pudimadaka, Andhra Pradesh to
produce products out of green hydrogen, green ammonia and green methanol at a cost of Rs 1,100 billion in two
phases.
• In January 2023, NTPC and Gujarat Gas Limited commissioned India's first green hydrogen blending operation in the
PNG network of its township in Kawas, Surat.
• In December 2022, NTPC signed an memorandum of understanding (MoU) with Tecnimont Private Limited to assess
and potentially develop a commercial green methanol production facility.
• In August 2022, Ohmium International collaborated with Spirare Energy, a Delhi-based company to generate green
hydrogen at the NTPC NETRA campus.
• In July 2022, NTPC REL signed an MoU with National Fertilizers Limited (NFL) to collaborate in the field of renewable
energy and green chemicals and mutually explore opportunities for the supply of 90 MW round-the-clock (RTC) power
in phases and synthesizing 50 tonnes per day green ammonia for captive use for production of Industrial products by
NFL. In the same month, NTPC REL signed a MoU with Gujarat Alkalies and Chemicals Limited (GACL) to mutually
explore the opportunities for setting up India’s first commercial-scale green ammonia and green methanol project.
• In June 2022, NTPC awarded the project of setting up green hydrogen fueling station in Leh, Ladakh to Amara Raja
Power Systems Limited.
• In December 2021, NTPC Limited awarded the contract to build a standalone micro-grid project with hydrogen storage
at its Simhadri thermal station in Visakhapatnam, Andhra Pradesh.
• In October 2021, Technip Energies was awarded an engineering, procurement, and construction (EPC) contract for
NTPC's PEM-based hydrogen generation plant project at Vindhyachal, Madhya Pradesh.
Source: Various sources

35

• ACME Solar is in advanced discussions with lenders, including REC Limited, Power Finance Corporation Limited, State
Bank of India and banks from the Middle East, to secure debt amounting to Rs 40 billion to fund the green ammonia
and green hydrogen projects in Tamil Nadu and Oman.
• In May 2023, ACME Group and Indraprastha Gas Limited (IGL) signed a MoU to jointly explore the potential business
opportunities of green hydrogen.
• In February 2023, ACME Group and IHI Corporation announced signing of a MoU to jointly explore the potential
business opportunities of green hydrogen.
• In July 2022, ACME Group announced developing a green hydrogen and ammonia project in Tamil Nadu at an
investment of Rs 524.74 billion.
• In June 2022, ACME Cleantech Solutions Private Limited signed an MoU with Karnataka government to invest Rs 520
billion for setting up a green hydrogen and green ammonia plant in Mangalore, along with the associated solar power
plant. The company also commissioned its first semi-commercial integrated green hydrogen-ammonia and solar plant
in Bikaner.
In May 2023, JSW Energy announced its plan to set up a green hydrogen plant in Karnataka with a capacity of 3,800 tonnes.
\ It also signed a seven-year contract with JSW Steel for supplying green hydrogen and green oxygen to produce green steel.
• In April 2023, Jakson Green announced its plan to build a green hydrogen fueling station in Badarpur, New Delhi for a
major Indian power firm. In the same month, Jakson Green secured a project from NTPC to establish a methanol
synthesis facility at Vindhyachal thermal power plant in Madhya Pradesh. The plant, with a production capacity of 10
tonnes per day, will be integrated into NTPC's Vindhyachal TPP.
• In October 2022, the company signed a MoU with the Rajasthan government to invest about Rs 224 billion in the state
to set up a green hydrogen and green ammonia project in phases.

36

• In April 2023, Bharat Heavy Electricals Limited (BHEL) announced its venture in the green hydrogen segment. The
company intends to hire a business consultant to help it capitalise on possible prospects in electrolyser production and
the green hydrogen value chain.
• In March 2023, BHEL and IGL inked an MoU to collaborate for the advancement, production, and application of Type-IV
cylinders able of depositing both CNG and hydrogen.
In March 2023, Amplus Solar has entered into a MoU with the Andhra Pradesh government to set up 7.5 KPTA-distributed
green hydrogen plants for industrial consumption in the state with an investment (including on-site hydrogen production
plants and off-site wind and solar energy plants) of Rs 15 billion.
Aranayak In February 2023, Aranayak Fuel and Power announced that it would break ground on its Rs 500 million, 1-ton-per-day,
biomass-based green hydrogen facility in the Uttar Pradesh district of Mirzapur on March 2023. During the most recent
Fuel and
"global investors' meet" that was held in Uttar Pradesh, the company and the state government inked an MoU. The plant
Power expects to start producing green hydrogen later in 2023.
• In February 2023, Greenko Group announced that Belgium’s John Cockerill would supply 28 units of 5 MW alkaline
electrolysers to the company for use in its green ammonia plant in Una, Himachal Pradesh. In the same month, Uniper
and Greenko ZeroC Private Limited announced the signing of a MoU and heads of terms for Uniper to enter into
exclusive negotiations for the offtake of green ammonia from Phase 1 of Greenko ZeroC’s ammonia production facility
in Kakinada.
• In April 2022, Greenko ZeroC Private Limited and John Cockerill agreed for a 50-50 joint venture (JV) to set up a green
hydrogen electrolyser factory in India. The two companies would build a hydrogen electrolyser gigafactory with a
capacity of 2 GW which is aimed at substituting 8 per cent of India’s LNG imports.
• In July 2022, Oil and Natural Gas Corporation (ONGC) signed a MoU with Greenko Group, to jointly pursue
opportunities in renewable energy, green hydrogen, green ammonia and other derivatives of green hydrogen. Under
the partnership, the companies would jointly develop a 1 million metric tonnes per annum green ammonia production
and storage facility in the country for export purpose.

37

In February 2023, Ocior Energy and government of Gujarat signed MoU for the development of green hydrogen and green
ammonia project in Kutch district of Gujarat with an investment of Rs 400 billion and a production capacity of 1 million
tonnes per annum.
In January 2023, TheGreenBillions Limited (TGBL) announced a collaboration with the Pune Municipal Corporation to
The Green establish the first plant in India to extract green hydrogen from biomass and municipal solid waste. For the next 30 years,
Billions TGBL’s wholly-owned subsidiary Variate Pune Waste to Energy would manage and use the municipal solid waste of 350
Limited tonnes per day in Pune to generate hydrogen.
• In December 2022, Greenzo Energy India Limited announced that it would invest $50 million in the Sanand-II Industrial
Estate, a part of Gujarat Industrial Development Corporation to build a plant for manufacturing electrolysers. The Real
Time Accelerator Fund committed for investing $1 million in the company.
• In May 2022, the company announced its plans to invest in the construction of a 250 MW electrolyser factory in order
to reduce the country’s dependence on imports of this key green hydrogen production equipment.
In December 2022, Adar Poonawalla-backed homiHydrogen, a JV between h2e Power Systems Private Limited, BlueBasic
homiHydrogen AMA Engineering (H2energy, Italy) and Greenstat Hydrogen India announced its plan to set up a 1.5 GW per annum
manufacturing facility for electrolysers in Pune.
• In December 2022, Avaada Ventures signed an MoU with Uttar Pradesh Government for setting up Rs 225 billion green
ammonia plant by 2026.
• In August 2022, Avaada Group announced that it would invest around $5 billion to build an integrated green hydrogen
and ammonia plant with captive renewable energy capacity in Rajasthan.

38

In November 2022, ABC Cleantech, a subsidiary of Hyderabad-based renewables developer Axis Energy Group has signed
ABC a MoU with the Government of Karnataka to invest approximately $6 billion in the state for establishing a 5 GW green
Cleantech hydrogen and ammonia facility.
In September 2022, Amp Energy India and Ohmium International announced a collaboration for mid-sized commercial
and industrial projects of 25 MW or smaller capacities. The projects, with a total capacity of 400 MW, are planned to be
installed over the period of next three years.
In August 2022, Ohmium International collaborated with Spirare Energy to generate green hydrogen at the NTPC NETRA
campus. Spirare Energy would manage the engineering, procurement and construction of the project whereas Ohmium
would provide the electrolysers to Spirare. The project will supply up to 52 tonnes of green hydrogen annually for the
power generation and energy storage application.
In July 2022, NHPC signed two MoUs for the implementation of “pilot green hydrogen technologies” in the districts of Leh
and Kargil in Ladakh. In April 2022, NHPC signed a MoU with the district administration of Chamba, Himachal Pradesh for
development of green hydrogen technologies to produce hydrogen.
In July 2022, Karnataka signed a MoU with Petronas Malaysia to facilitate their investment of Rs 312 billion for
establishing a unit to make green Hydrogen plant in the Mangaluru district.
In June 2022, PTC India and Greenstat Hydrogen India signed a MoU for joint development of green hydrogen solutions
for Indian power market beneficiaries. Under this MoU, both the companies will collaborate and work towards developing
green hydrogen projects in India.

39

In May 2022, Ayana Renewable Power (Ayana) and Greenstat Hydrogen India signed a joint development agreement for
the development of green hydrogen projects in India. The companies would collaborate to develop large-scale green
hydrogen solutions in order to provide a long-term supply of green hydrogen to industrial and commercial users in India.
• In April 2022, Larsen & Toubro (L&T) signed an agreement with the Indian Institute of Technology (IIT) Bombay to
collaborate on green hydrogen value chain research and development. This partnership will be supported by L&T’s
engineering expertise, product scale-up and commercialization expertise, and IIT Bombay’s research in hydrogen
technologies.
• In August 2022, L&T announced the commissioning of a green hydrogen plant at its AM Naik Heavy Engineering
Complex in Hazira, Gujarat.
• In April 2022, ReNew Power, along with Indian Oil Corporation Limited (IOCL) and L&T, announced the signing of a
binding term sheet for the formation of a JV company to develop the nascent green hydrogen sector in India.
• In November 2021, ReNew announced to set up a green hydrogen production plant in Madhya Pradesh. The
company is ready to invest Rs 180 billion in building a green hydrogen plant with a production capacity of 50
kilotonnes per annum in the state.
In January 2022, Hero Future Energies (HFE) and Ohmium International announced a strategic partnership to develop
and build 1,000 MW of green hydrogen production facilities in India, the UK and Europe.
In October 2021, Reliance New Energy Solar Limited, and Denmark-based Stiesdal A/S signed a cooperation agreement
for technology development, and manufacturing of Stiesdal’s Hydrogen electrolysers in India. The company is actively
working on establishing the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat. Further, the complex
will have four gigafactories: an integrated solar PV module factory, an energy storage battery factory, an electrolyser
factory for green hydrogen production, and a fuel cell factory for converting hydrogen into motive and stationary power.

40

Oil and Gas Companies
In June 2023, the Himachal Pradesh government signed an agreement with the Oil India Limited (OIL) to build a
hydrogen production plant in the state.
In April 2022, OIL commissioned India’s first 99.999 per cent pure green hydrogen pilot plant with an installed capacity
of 10 kg per day at its Jorhat Pump station in Assam.
• In May 2023, Bharat Petroleum Corporation Limited (BPCL) teamed up with Bhabha Atomic Research Centre (BARC)
to scale up alkaline electrolyser tech for green hydrogen production.
• In June 2022, BPCL invited bids to set up a 5 MW electrolysers and associated system for producing green hydrogen
and hydrogen blending with natural gas in the city gas distribution network.
In May 2023, HPCL Mittal Energy Limited (HMEL) and NTPC Green Energy Limited signed a MoU to collaborate in
renewable energy through sourcing of 250 MW RTC renewable energy to meet the requirement of HMEL.
As mentioned previously, in May 2023, IGL and ACME Group signed a pact to jointly explore the potential business
opportunities of green hydrogen.
• In February 2023, IOCL announced its plan to establish green hydrogen plants at all its refineries in a Rs 20 billion
green transition plan to reach net-zero emissions from its operations by 2046.
• IOCL announced that it will be setting up green hydrogen-producing facility at its Panipat and Mathura oil refineries.
• In September 2022, IOCL and Chennai Petroleum Corporation issued an expression of interest for the design,
manufacturing, and commissioning of the electrolysers and related items for the production of green hydrogen at its
refinery at Manali in Chennai, Tamil Nadu.
• In April 2022, IOCL and L&T have signed a binding term sheet to form a JV with equity participation to manufacture
and sell electrolysers used in the production of green hydrogen.

41
Oil and Gas Companies
• In December 2022, Cummins announced a partnership with Tecnimont Private Limited to build a PEM electrolyser for
the Gas Authority of India Limited (GAIL) to produce green hydrogen in Vijaipur, Madhya Pradesh.
• In May 2022, GAIL awarded green hydrogen EPC contract to Maire Tecnimont Indian subsidiary, Tecnimont Private
Limited in collaboration with NextChem to set up India’s largest PEM electrolysers in Guna, Madhya Pradesh. The
project is designed to produce around 4.3 metric tonnes of hydrogen per day.
In December 2022, Adani New Industries signed a development and licensing agreement with Cavendish Renewable
Technology (CRT), a Melbourne based hydrogen technology company. The partnership included development of alkaline
electrolysers, PEM, anion exchange membranes, and CRT’s innovative ‘C Cell’ technology for mass-scale production.
In July 2022, ONGC signed a MoU with Greenko ZeroC Private Limited to collectively work on determining opportunities
in the space of renewables including green hydrogen, green ammonia, and other green hydrogen derivatives.
In November 2021, Hindustan Petroleum Corporation Limited announced its plan to commission a 370-tonne per annum
capacity green hydrogen plant in Vizag refinery, Andhra Pradesh.

42

Automobile Companies and Indian Railways
In June 2023, the Indian Railways announced its plans to operate 35 hydrogen trains under the 'Hydrogen for
Heritage' initiative, with the goal of reducing carbon emissions. The first prototype train, which will incorporate
hydrogen fuel cells, will undergo field trials to finally operate on the Jind-Sonipat section of Northern Railway. The
estimated expenditure will be to the tune of Rs 800 million per train and Rs 700 million per route for ground
infrastructure.
In February 2023, Ashok Leyland and Reliance Industries (RIL) unveiled India’s first Hydrogen Internal Combustion
Engine (H2-ICE) powered truck at the India Energy Week in Bengaluru.
In November 2022, Erisha E-Mobility entered the green hydrogen segment in a JV with Germany’s Greenbox
Global Holding to produce a wide range of hydrogen solutions such as hydrogen containers, energy storage
systems, hydrogen gensets, and hydrogen vehicles in India.
In March 2022, the Union Minister launched India's first green hydrogen-based advanced fuel cell electric vehicle,
Toyota Mirai which is reportedly, the first-of-its-kind project in India that aims to create an ecosystem for such
vehicles in the country.
In November 2021, Cummins Inc signed an agreement with Tata Motors to develop hydrogen-powered internal
combustion engines, fuel cells and battery electric vehicle systems for commercial automobiles in India.

43

Industries
In August 2022, Jindal Stainless and Hygenco India signed a long-term offtake agreement where Hygenco will
construct, own, and operate the green hydrogen facility for 20 years. Through this, Jindal Stainless Limited
would be able to reduce its carbon emissions by approximately 2,700 metric tonnes per year.
In October 2022, Keppel Infrastructure and Greenko Group signed a MoU to jointly explore green ammonia
and renewable energy opportunities to meet the growing demand for low carbon energy in India, Singapore
and globally.
In July 2022, NTPC REL signed a MoU with GACL in New Delhi to realize green energy and green hydrogen
objectives and the Government of India’s efforts toward the carbon-neutrality economy. The MoU envisages
collaborating in the field of renewable energy, green methanol and green ammonia and mutually exploring
the opportunities for the supply of 100 MW renewable-RTC power and synthesizing 75 tonnes per day green
methanol and 35 tonnes per day green ammonia for captive use for the production of various chemicals by
GACL at its Vadodara and Dahej complex in Gujarat.
In April 2022, Vedanta announced its plans for a tie-up with IIT-Bombay to carry out a research for
manufacturing pig iron ore using hydrogen in place of coke.

44
Recent Tenders
Recent Tenders
Various tenders have been released in the green hydrogen space. However, due to the nascency of the market, the tenders have been
limited and small in terms of capacity. Going forward, clear bidding guidelines are required for more tenders to be launched and help in
domestic uptake of green hydrogen.
Tender Agency Capacity (MW) Release Date Location Details

Bina, Madhya
BPCL 20 November 2021 It will be a pilot project for the company.
Pradesh
The winning bidder would need to develop a
Uttar Pradesh and green hydrogen generation facility with a 5,000
IOCL NA November 2021
Haryana MT and a 2,000 MT for its refinery in Mathura
and Panipat, respectively.
The tender includes a three year operation and
NTPC Renewables Not mentioned August 2021 Leh, Ladakh
maintenance contract.
In April 2022, NTPC and Gujarat Gas started the
pilot project of green hydrogen blended piped
NTPC Renewables Hydrogen blending August 2021 Kawas, Surat
natural gas supply in NTPC Kawas township in
Hazira Surat.
The tender intends to select electrolyser
technology provider(s) for a period of 2 years
NTPC Renewables 1,000 April 2022 Not mentioned for the following capacities: PEM Technology:
400 MW and other/ Non-PEM Technology: 600
MW.
The hydrogen generated from this plant will be
Gujarat Industries Power
5 and 10 April 2022 Gujarat supplied to fertilisers factories, refineries and
Company Limited
chemical industries in the area.
Amara Raja would be setting up a green
SECI 25 kW May 2022 Leh, Ladakh
hydrogen fueling station for the NTPC.

45
Recent Tenders
Recent Tenders
Tender Agency Capacity (MW) Release Date Location Details
Cummins will provide technology in

Guna, Madhya collaboration with the EPC player Tecnimont to
GAIL India Limited 10 May 2022
Pradesh build a PEM electrolyser for GAIL at Vijaipur, in
Madhya Pradesh
Mahatma Phule
Renewable Energy and Waaree Renewable Technologies Limited was
1 June 2022 Maharashtra
Infrastructure awarded a Letter of Intent (LoI) by MahaPreit.
Technology
20 NM3 per hour

The tender includes a ground-mounted solar
Maharashtra State including ground
Jalgaon, power plant of 500 kW AC capacity and five
Power Generation mounted solar July 2022
Maharashtra years of comprehensive (O&M) of the complete
Company Limited power plant of 500
project at Bhusawal, Jalgaon, Maharashtra.
kWac capacity
Chennai Petroleum September

NA Chennai, Tamil Nadu The project is expected to complete in 2026-27.
Corporation 2022
Jhakri, Himachal
SJVN Limited 20 NM3 per hour October 2022 NA
Pradesh

46
4. Projects and Case Studies

❖ ACME Green Hydrogen Project, Bikaner
❖ NTPC Simhadri Green Hydrogen Microgrid
❖ NTPC Kawas Green Hydrogen Blending Project
❖ L&T Hazira Green Hydrogen Project
❖ Oil India’s Green Hydrogen Project, Assam
❖ GAIL Green Hydrogen Project, Guna

47
Case Studies
ACME Green Hydrogen Project, Bikaner
Status: Location: Village

Commissioned in Bherukhera,
December 2021 Bikaner, Rajasthan
Capacity: A 5 MW
Emission project with provision
reduction: 4,400 for scaling up to 10
tons per annum of MW, and it can
carbon dioxide generate 4-5 tonnes
emissions of green ammonia per
day
Renewable energy project: The production facility will be driven by power supplied from a solar project of capacity 5 MW.
Electrolyser technology: It comprises use of alkaline electrolyser technology.
Maximum output per day: Maximum output generated per day when plant is at full capacity is 1,000 kg of green ammonia.
Gate price: The mill gate price for green hydrogen is between $2-3 per kg.
Source: ACME Group

48
Case Studies
ACME Green Hydrogen Project, Bikaner

Project level learnings
Remarks of Rajat Seksaria, Chief Executive Officer, ACME Group (in an interview with Renewable Watch)
“The first challenge was bringing three completely different technologies for solar power generation, electrolysis and green ammonia
generation together and integrating them on a MW scale.
The second challenge was that while electrolysers are primarily made for continuous operations, they had to be synced with an intermittent
power source like solar.
The third issue was getting a competitive supply chain in place for this complicated project.
Fourth challenge was on the operations end to get skilled manpower for such a niche segment.”
Remarks of Former General Manager, Hydrogen and New Business, ACME Cleantech (at Renewable Watch conference)
“With this project, we have tried to understand the technology makeup and how it will work efficiently, especially considering the
intermittency of renewable power. Thus, power balancing is quite critical for running electrolysers.
Moreover, a bigger challenge was to integrate the different systems and technologies to produce green ammonia. Although ammonia pro-
duction technology is quite well established globally and very standardised, it was challenging to piece all these different power systems
together in an efficient manner. This project also helped us understand the feasibility of developing a larger-scale project outside India or in
India.”
Future plans of ACME Group
• ACME Group announced a green hydrogen and green ammonia project in the state of Tamil Nadu with an investment of Rs 524.74 billion.
• ACME Group and Karnataka government inked a Memorandum of Understanding to invest around Rs 520 billion in the state to establish a
green hydrogen and green ammonia project.
• The company intends to complete the first phase of its upcoming green hydrogen project in Oman in 2023.
• It is also working on similar initiatives in other parts of the world, including Western Australia, North Africa, and a few Indian states.
Source: ACME Group

49
Case Studies
NTPC Simhadri Green Hydrogen Microgrid
Location:
Contractor:
Simhadri
Bloom Energy
Status: Under Samudrika
India Private
construction Guesthouse,
Limited
Visakhapatnam,
Andhra Pradesh
Green
Project type: hydrogen
Standalone capacity: 50
kW
Renewable energy project: The production facility will be driven by solar power supplied from a nearby floating solar project.
Electrolyser capacity: The green hydrogen plant is designed with an electrolyser capacity of 240 kW with two electrolysers each
of 120 kW.
Electrolyser technology: It comprises use of solid oxide electrolyser technology.
Miscellaneous equipment: The plant has invested Rs 5 million over miscellaneous technical equipment for its functioning.
Source: NTPC Limited

50
Case Studies

Technical specifications
Process Timings
• The electrolyser will produce 2*2.69 kg hydrogen per
hour leading to an estimated volume of 45 kWh per kg.
• With the help of 100 bar compressor and purifier, the 7AM - 5PM (10 hrs)
Electricity supply from solar plant
produced green hydrogen’s purity at the facility is
estimated to be 99.97%.
5PM – 7AM (14 hrs)
• The green hydrogen is stored in Type II container and is Fuel cell running
monitored using pressure regulator.
• The facility is equipped with a 50 kW fuel cell.

Electrolyser Running 7AM – 5PM (10 hrs)
Systematic flow
chart representing
production of green
hydrogen at NTPC’s
Simhadri microgrid
Source: NTPC Limited

51
Case Studies

Selection of contractor Application of project
• In June 2021, NTPC released an expression of interest requesting • The green hydrogen produced during the sunshine hours
bids for experimental projects based on hydrogen fuel cells for the will be stored at high pressure and will be electrified using
Simhadri project. a 50 kW solid oxide fuel cell electrolyser to power NTPC’s
guest house.
• The selected bidder will be responsible for engineering, supply of
all system parts, erection, testing, and commissioning of the • The system will work in a standalone mode from 5 PM to 7
system, and interface with the existing electrical system. AM.
• In December 2021, Bloom Energy bagged the project. Bloom

Energy will be responsible to carry out routine maintenance of the According to NTPC Limited, this project would serve as
systems for three years from the date of commissioning of the a test bed for large scale hydrogen energy storage
project. projects and can be valuable for researching and
installing several microgrids across India.
Future plans of NTPC
• NTPC Simhadri is establishing four Flue Gas Desulphurisation (FGD) units at a cost of approximately Rs 8.91 billion as part of its green
initiatives to reduce pollution levels.
• Further, an ambitious green hydrogen project for which a memorandum of understanding was inked by NTPC with SMEC during the Global
Investor's Summit will be established at Pudimadka, Andhra Pradesh.
Commenting on the occasion, Venkat Venkataraman, Executive Vice President and Chief Technology Officer, Bloom Energy stated in a
press release “Bloom’s technology is well-positioned to help India transition to a net-zero, hydrogen-powered economy, and we are
excited to collaborate with NTPC to bring the country’s first green hydrogen microgrid to life. The powerful combination of Bloom’s high-
efficiency electrolysers and fuel cells enables the highest possible round trip efficiency with green hydrogen for energy storage.”
Source: NTPC Limited, Bloom Energy India Private Limited

52
Case Studies
NTPC Kawas Green Hydrogen Blending Project
Status:
Location:
Commissioned
Adityanagar,
in January
Surat
2023
Application:
For cooking
Cost: Rs 28.3
purpose at
Million
NTPC Township
of 200 houses
Collaboration: The project is a joint effort of NTPC and Gujarat Gas Limited.
Renewable energy project: Floating solar plant of 1 MW
Hydrogen storage: The project's hydrogen storage capacity is 13 Nm3, with a minimum pressure requirement of 10 bar.
Electrolyser capacity: The project's electrolyser capacity is a minimum of 1 Nm3 per hour for hydrogen production.
Blending hydrogen with PNG: Petroleum and Natural Gas Regulatory Board has given approval for 5% vol./vol. blending of green
hydrogen with PNG to start with and the blending level would be scaled phase wise to reach 20%.
Source: NTPC

53
Case Studies
NTPC Kawas Green Hydrogen Blending Project

"This hydrogen blending project at NTPC Kawas is a pioneering effort and first of its kind in the country. This is a step towards the
decarbonisation of the cooking sector and self-sufficiency for energy requirements of the nation," the company said in a
statement.
Other NTPC hydrogen blending projects

1. NTPC Solapur and Solapur Town : In August 2022, NTPC announced plans for its commercial green hydrogen blending
project in Solapur, Maharashtra. The project aims to produce green hydrogen on-site and blend it with PNG for cooking
applications. Initially, the blending percentage would start at 2% and gradually increase to a maximum of 20%. Approximately
560 households would benefit from this project, contributing to the decarbonisation of the cooking sector and enhancing
energy self-sufficiency.
2. NTPC Ramagundam: In July 2021, NTPC commissioned the country's largest floating solar power plant with a total capacity
of 100 MW at Ramagudam, Telangana. Furthermore, NTPC would utilise power from the 100 MW floating solar project to
produce green methanol.
Source: NTPC

54
Case Studies
L&T Hazira Green Hydrogen Project
Location: AM
Naik Heavy
Land: 3,000 sq.
Engineering
meters
Complex in
Hazira, Gujarat
Application:
Captive Status: Phase 1
consumption in (commissioned
manufacturing in August 2022)
process
Capacity of green hydrogen: The plant will produce 45 kg of green hydrogen daily for captive consumption within the company.
Renewable energy power: The plant will be powered by a rooftop solar plant with a capacity of 990 kW peak DC and a 500 kWh
battery energy storage system.
Electrolyser capacity: The green hydrogen plant is designed with an electrolyser capacity of 800 kW.
Electrolyser technology: It comprises both alkaline (380 kW) and polymer electrolyte membrane (420 kW) technologies.
Project scope and application: Generation of high purity green hydrogen (99.99%) and oxygen. A blend of 15% hydrogen with
natural gas will be used as a fuel. Meanwhile, oxygen will supplement the existing usage in cutting and welding applications.
Source: L&T

55
Case Studies
L&T Hazira Green Hydrogen Project

Safety measures Project Phases
• The plant design incorporates both active and passive • The first phase of the project has been completed, which
safety systems and will be operated through state-of-the- involved the installation of a 380 kW alkaline electrolyser.
art control systems with remote monitoring functionality. • The second phase will include the installation of a 420 kW
• In addition, an integrated data analytics platform PEM electrolyser.
designed by L&T will provide insights into the • Future expansion plans also include augmenting the solar
performance of the electrolysers and the overall plant. plant capacity to 1.6 MW peak DC.
Mindtree has designed and implemented a digital command and control solution for this project. It uses Insights NxT, the IoT and
data analytics platform of Mindtree NxT, for remote monitoring and control of all services at the plant.
Future Plans of the company

• As part of its ESG commitments, L&T has pledged to achieve water neutrality by 2035 and carbon neutrality by 2040, and
making green hydrogen an integral part of its clean fuel adoption policy.
• L&T has announced a tie-up with a French company McPhy for technology for electrolyser manufacturing and green hydrogen
production. The electrolyzer plant will come up at the Hazira facility.
Commenting on the occasion, Subramanian Sarma, Whole-Time Director & Senior Executive Vice President (Energy), L&T said in a
press release: “This initiative is in line with L&T’s climate leadership targets of Lakshya-2026. The scope involves the generation of
high purity green Hydrogen (99.99%) and oxygen, and their captive consumption in the manufacturing shops. A blend of 15 per
cent hydrogen with natural gas will be used as a fuel, and oxygen will supplement the existing usage in cutting and welding
applications."
Source: L&T

56
Case Studies
Oil India’s Green Hydrogen Project, Assam
Status: Location: Jorhat

Commissioned in Pump Station,
April 2022 Assam
Capacity: 10 kg of
Contractor: H2e
green hydrogen per
Power Systems
day
Renewable energy project: The production facility will be driven by power supplied from a solar project of capacity 500 kW.
Electrolyser technology: It comprises use of 100 kW anion exchange membrane (AEM) electrolyser array technology.
Application: The produced hydrogen will be mixed with natural gas and will be used to power hydrogen buses in Assam.
Hydrogen purity: This plant produces 99.999% pure green hydrogen
Source: Oil India Limited

57
Case Studies
Oil India’s Green Hydrogen Project, Assam

Expansion plans: In the future, it is anticipated that this facility would raise its green hydrogen production from 10 kg per day to
30 kg per day.
Future plans of OIL India Limited
• The company has initiated a detailed study in collaboration

with IIT Guwahati on blending of green hydrogen with
natural gas and its effect on the existing infrastructure of OIL
India Limited.
• The company also plans to study use cases for commercial

applications of the blended fuel.
• OIL India Limited also entered into an incubation agreement

with Ohm Clean Tech Private Limited for the design,
integration, and development of a 9-M hydrogen fuel cell
powered e-bus as well as a liquid organic hydrogen carrier
solution.
• OIL India Limited has entered into a memorandum of

understanding with the Himachal Pradesh to establish a Mr Sushil Chandra Mishra, Chairman and Managing
hydrogen production plant in the state. Director, Oil India Limited inaugurating the plant
Commenting on the occasion, Mr Mishra said in a press release that ”The company has taken an important step towards fulfilling
the vision of the Indian Prime Minister for an Atmanirbhar India. This plant is expected to scale up production capacity of green
hydrogen in near future”.
Source: Oil India Limited
•
58
Case Studies
GAIL Green Hydrogen Project, Guna
Location: GAIL
Vijaipur
Status: Under
Complex, Guna,
construction
Madhya
Pradesh
Application: EPC partner:

Industrial use Tecnimont
Green hydrogen capacity: The project has been designed to produce around 4.3 tons of hydrogen per day (with a purity of about
99.999 volume %).
Electrolyser specification: PEM electrolyser with capacity of 10 MW and the electrolyser technology partner is Cummins
Application: The green hydrogen will be mixed in natural gas for supply to industries like fertilizer units.
Expected commissioning date: The project is expected to be completed by November 2023.

59
5. Technology Trends
❖ Current Hydrogen Manufacturing Capacity
❖ Domestic Manufacturing Plans and Upcoming Projects
❖ Types of Electrolysers
❖ Focus on Fuel Cells
❖ Storage and Transportation
❖ Applicable Standards

60
Technology Trends
Current Hydrogen Manufacturing Capacity

The global electrolyser capacity in 2023 is 21.5 GW/year, according to IEA. In 2030, it is expected to reach 61.3 GW/year. The following graph
gives the region wise break up of the planned electrolyser manufacturing capacity till 2030
Planned electrolyser manufacturing capacity by region, 2021-2030

70 61.3
57.3 57.3 57.3
60
47.3
45.1 Others, 14.8
Others, 10.8 Others, 10.8 Others, 10.8
50
India, 2.5 India, 2.5 India, 2.5 India, 2.5
Others, 10.8 North America, 2.1 North America, 2.1
40 27 Others, 9.8 North America, 2.1
GW/year
North America, 2.1

India, 2.5
21.5 India, 2.5
Others, 0.8 North America,North
2.1 America, 2.1 China, 22.6 China, 22.6 China, 22.6 China, 22.6
30
13.8 Others, 0.1 India, 1.5 China, 12.6
North America, 2.1 China, 12.6
20 Others, 0.1 NorthIndia, 1.5
America, 1.6 China, 9.1
India, 0.5
North America, 1.6 China, 9.1
10 Europe, 18.1 Europe, 19.3 Europe, 19.3 Europe, 19.3 Europe, 19.3 Europe, 19.3
China, 7.6 Europe, 13.5
Europe, 9.2
Europe, 4
0
2022 2023 2024 2025 2026 2027 2028 2029 2030
The current electrolyser manufacturing capacity in India is 0.5 GW/year and is expected to grow to just 2.5 GW/year. This manufacturing
capacity is insufficient to meet the domestic green hydrogen targets, hence, the focus is expected to be on imports to meet domestic
demand.
Source: IEA, India Infrastructure Research

61
Technology Trends
Domestic Manufacturing Plans and Upcoming Projects

The previous slide of IEA’s data shows India’s electrolyser manufacturing capacity to increase to just 2.5 GW/year. However, according to
India Infrastructure Research at least 10.9 GW of electrolyser manufacturing capacity is under various stages of development, summarised in
the following table. Thus, future electrolyser manufacturing capacity estimates would take these new developments into account.
Key announced and under construction electrolyser manufacturing projects in India

Developer/promoter Electrolyser capacity (MW) Electrolyser technology (MW) Project status
homiHydrogen Private Limited (joint
venture of h2e Power, BlueBasic AMA Under
1,500 Alkaline, AEM, PEM, and SOE
Engineering, and Greenstat Hydrogen construction
India)
Under
Ohmium International 1,500 PEM
construction
Greenko ZeroC Private Limited and
2,000 Alkaline Permitting
John Cockerill
GAIL India Limited NA NA Announced
GreenZo Energy Private Limited 250 PEM Announced
Reliance New Energy Solar Limited
NA HydroGen Electrolyzers Announced
(RNESL)
Alkaline, AEM, PEM and CRT's innovative 'C
Adani New Industries Limited (ANIL) 5,000 Announced
Cell' technology
L&T and McPhy Energy NA Pressurised Alkaline Announced
Greenzo Energy India Limited 250 NA Announced
Ohmium and NTPC 400 Modular interlocking PEM electrolyzer Announced
Even a minimum of 10.9 GW of electrolyser manufacturing capacity - that has either been announced or is under construction – is insufficient
to meet the target of 5 MMT/per annum of green hydrogen production by 2030. According to India Infrastructure Research, to meet this
demand around 48 GW of electrolyser capacity will be needed. Going forward, faster expansion of domestic manufacturing can be expected
given that the MNRE has recently unveiled a Rs 174.90 billion incentive scheme for manufacturing of electrolysers and production of green
hydrogen.
Source: IEA, CEEW, India Infrastructure Research

62
Technology Trends
Types of Electrolysers
Hydrogen can be produced from a variety of primary or secondary energy sources. Following are the key methods of hydrogen production:
Hydrogen-production Type of hydrogen

Description
technologies currently available produced
Gasification Converts organic or fossil-based carbonaceous materials into CO, H2 , and CO2 Black/brown
Methane reacts with steam under 3–25 bar pressure in the presence of a
Steam methane reforming (SMR) Gray
catalyst to produce hydrogen, CO, and a relatively small amount of CO2
CO2 is captured (85–90 percent) at the production facility and stored separately
SMR with CCUS) Blue
(i.e., not released into the environment).
The thermal decomposition of methane is known as methane pyrolysis and
Pyrolysis Turquoise
produces solid carbon as a by-product.
Nuclear-energy electrolysis Hydrogen produced from electrolysis of water, using nuclear energy Pink
Hydrogen generated through electrolysis of water powered by renewable
Renewable-energy electrolysis Green
energy such as solar/wind power
Type of electrolyzers Description

Alkaline electrolysis makes use of two electrodes submerged in an alkaline electrolyte solution (such as
Alkaline potassium or sodium hydroxide); a non-conductive porous membrane called a diaphragm is used to
separate the O2 and H2 from water
PEM electrolyzers use a solid polymer membrane that absorbs positively charged hydrogen atoms and
Proton-exchange membrane
allows them to flow into a separate tank, where they re-bond into H2 molecules
Anion-exchange membrane Hydrogen production using water electrolyzers equipped with an AEM
An SOEC is a solid-oxide fuel cell that runs in regenerative mode to achieve the electrolysis of water by
Solid-oxide electrolyzer cell
using a solid-oxide, or ceramic, electrolyte to produce H2 and O2
Source: Capgemini Research Institute 2023, India Infrastructure Research

63
Technology Trends
The following table compares the key electrolyser technologies like alkaline, proton exchange membrane, solid oxide and anion-exchange
membrane.
Parameter Alkaline Proton exchange membrane Solid oxide Anion-exchange membrane
Liquid alkaline solution

of sodium or
potassium hydroxide
as the electrolyte.
Electrolyte is a solid specialty
Newer approaches Solid ceramic material as Semi-permeable membrane
Materials plastic material (polymeric
using solid alkaline the electrolyte generally made from ionomers
membrane)
exchange membranes
as the electrolyte are
showing promise on
the lab scale
SOE operate at
temperatures high enough
for the solid oxide
Transport of hydroxide membranes to function AEM is designed to conduct
ions (OH-) through the properly. In high- anions while being impermeable
The electrons flow through an
electrolyte from the temperature electrolysis, to gases such as oxygen or
external circuit and the
Mechanism cathode to the anode high-temperature steam is hydrogen. The reactants present
hydrogen ions selectively move
with hydrogen being separated at the anode into around the two electrodes are
across the PEM to the cathode
generated on the hydrogen and oxygen ions separated while transporting the
cathode side which pass through an ion- anions across the membrane
conducting membrane to
the cathode where they are
converted to oxygen
Source: IRENA; IEA; TERI; India Infrastructure Research

64
Technology Trends
Rapid response to changes in
A significant part of the
power. Furthermore, PEMs are
energy needed to split water
often seen as a safer option, Membrane separation, pure
is thermal, instead of
since the membrane provides a water feed (similar to PEM)
electrical, thus reducing the
physical barrier between the and cheap, abundant
overall electrical energy
produced H2 and O2. In materials (similar to alkaline).
More established required and improving
Advantages addition to the ability to ramp In AEM water electrolysis,
affordable process efficiency. Subject to
output up and down rapidly, conventional noble metal
the source of thermal energy,
they also work above capacity electrocatalysts are replaced
capital and running costs can
for short periods, occupy a with low-cost transition metal
be reduced. The process can
smaller footprint, and deliver catalysts
also provide waste heat
hydrogen at a higher output
recovery
pressure
Low conductivity, limited
The process has relatively low
Limited operational thermal stability, poor
Higher capital costs due to the material costs, although these
flexibility (although electrode architectures and
requirement of more expensive materials face rapid
this is improving), slow catalyst kinetics. The low
Disadvantages catalyst materials. The costs degradation due to high
larger area conductivity is mainly due to
are going down as technology operating temperatures (900–
footprint, and low OH- ion being intrinsically
advancements continue 1000˚C), which results in high
output pressure three-fold slower than H+
overall costs
protons within PEM
R&D efforts are currently
Advancements in focused on increasing the
Decreasing the amount of Catalysts, membranes and
Focus area of electrode lifetime of the electrode. It is
precious metals (like platinum ionomers for AEM electrolysis
development technology for also possible to make use of
and iridium) in PEM catalysts
alkaline systems waste heat to improve overall
efficiencies

65
Technology Trends
Operating
70-90 °C 50-80 °C 700-850 °C 40-60 °C
temperature
Operating
1-30 bar 30-80 bar 1 bar < 35 bar
pressure
56-60% currently.
60-73% currently. 63-68% by 2030 expected. Currently, 74–81%. Highest
Efficiency 86% by 2030 In the long-term may reach 67- efficiency which could go up NA
expected 74% to 90% in the coming years.
According to IEA,
AEM electrolysers are at earlier
while technology is
stages of development. Last year,
commercially SOEC electrolysis is a
the IEA considered the
available, it requires Going forward, manufacturers technology under
technology to be at early
policy support and producing PEM may also plan demonstration. Larger-scale
prototype stage. However, seeing
Remarks improvements to stay to switch to AEM as the design projects are also under
how the technology is rapidly
competitive with is similar even though the development, some of them
evolving, the IEA has revised
traditional hydrogen technology is different quite advanced
upward this assessment and
production
considers AEM electrolysers to
technologies based on
now be at full prototype at scale
unabated fossil fuels

66
Technology Trends
Focus on Fuel Cells

• In India, the most promising of all fuel cell technologies developed is Proton Exchange Membrane Fuel Cell (PEMFC), which operates at a
lower temperature. The variant of PEMFC is Direct Alcohol Fuel Cell (DAFC), which is directly fed with methanol and ethanol as fuel instead
of hydrogen. A majority of Indian organisations are involved in fundamental research on polymer membranes electrolyte, anode and
cathode catalysts and membrane electrode assembly and hydrogen storage with very few involved in manufacturing and technology.
• Some institutions are involved in more application oriented research such as stack and balance of plant development and fuel cell bus
demonstration program. PEMFC technology has been developed to the commercialisation stage in many countries including Canada, the
US, Japan, Germany. In India, a large number of groups are engaged in the research, development and demonstration activities of PEMFC
but it has not reached the stage of commercialisation. A few organizations like CFCT-ARCI, CSIR-Network Labs, NMRL, VSSC and BHEL are
engaged in complete development of PEMFC system.
• The key challenge in India is that engineering input and infrastructure for producing such system in large numbers for trials/demonstration
are lacking. These activities rely on pressurised bottled hydrogen procured at high cost. On site hydrogen generation units (reformers)
operating on commercial fuels such as LPG, methanol or natural gas are not available in the country, which again restrict the technology
development process.
Department of Science and Technology’s activities in this space primarily focusses on: Going forward, supply chain of
fuel cells will be an issue as it
• Novel materials, catalysts for durable and low-cost PEM fuel cells
needs materials which India
• Nano-doped hybridised biodiesel as pilot fuel for hydrogen dual fuel operation in a CI engine and needs to import. That majority of
compressed hydrogen-fuel cell integrated system suitable for light duty vehicles these resources may be imported
from China is another concern,
• Stationary power backup application for telecommunication towers and gas turbine combuster requiring democratisation of
supply chains.
India's hydrogen fuel cell vehicle market is estimated to be $900.24 million in 2023 and is expected to
reach $1,737.9 million by 2028, growing at a compound annual growth rate of 14.06 per cent,
according to Research and Markets.
Source: DST, India Infrastructure Research

67
Technology Trends
Storage and Transportation

Costs of hydrogen storage
Storage type Year Cost ($/kg hydrogen) Capacity
2020 0.05 Salt cavern storage (20% vol.)
Salt cavern storage
2050 0.02 Salt cavern storage (20% vol.)
2020 0.14 Rock cavern storage (20% vol.)
Rock cavern storage
2050 0.05 Rock cavern storage (20% vol.)
2020 0.65 700 kg
Steel tank
2050 0.54 1,100 kg
Note: This analysis is for industrial clusters where hydrogen production facilities are located close to end-use consumers. The transportation of
hydrogen is assumed to be through pipelines. For storage, steel tank storage is considered. Transportation costs by pipeline are expected to
decline from $0.03/kg in 2020 to $0.02/kg in 2050. The cost of storage is expected to fall from $0.64/kg in 2020 to $0.54/kg in 2050.
Storage and transportation of hydrogen could be a potential challenge in scaling up the hydrogen economy for India. The existing
infrastructure is limited and could be insufficient to support the widespread use of hydrogen as an energy carrier.
• Globally, most hydrogen is transported using pipelines. However, pipelines need to be designed with higher specifications to minimise
leakage and embrittlement.
• Alternatively, hydrogen can be transported in the form of ammonia, methanol and liquid organic hydrogen. These fuels have higher
energy conversion costs.
• At lower volumes, transporting hydrogen using trucks could be a viable option.
Based on estimates of the Energy Transitions Commission and TERI, for most applications in India, hydrogen transportation through pipelines
could be the most cost-effective route. However, challenges in obtaining investments for building pipelines and technical issues would need
to be addressed.
Shipping could remain an unviable option for India for domestic transport till 2050 due to the high costs of liquefaction, refrigeration and
regasification.
Source: TERI; BNEF, India Infrastructure Research

68
Technology Trends
Storage and Transportation

• Relative costs of transporting different quantities of hydrogen over different distances will determine which option is suitable. Most
commonly, pipelines, trucks, and shipping are the three ways of transporting hydrogen. Most (85%) of the hydrogen is produced and
consumed on-site and the remaining quantity is transported through trucks or pipelines.
• Pipelines are likely to be the most cost-effective long-term choice for local hydrogen distribution if there is sufficiently large, sustained and
localised demand.
Costs of hydrogen transportation

Technology Year Cost ($/kg hydrogen) Description
2020 0.03 50 km distance; 1,000 tpd
Transmission pipeline
2050 0.02 50 km distance; 1,000 tpd
2020 0.09 50 km distance; 1,000 tpd
Distribution pipeline
2050 0.07 50 km distance; 1,000 tpd
2020 0.16 50 km distance; 700 kg capacity
Truck
2050 0.54 50 km distance; 1,100 capacity
The way forward
There is ample opportunity for Hydrocarbon-rich countries (HRC) with strong export infrastructure, shipping sectors, and pipeline networks.
• National oil companies can repurpose existing gas pipeline infrastructure or develop new hydrogen networks to facilitate transportation.
They can also partner with ship builders to develop hydrogen carriers. A number of carriers of liquefied hydrogen will be required to
facilitate a global clean-hydrogen market by 2030. Utilities and developers of renewable energy sources can leverage existing pipelines or
develop new ones to transport hydrogen locally. National oil companies and utilities can also invest in the electric grid to facilitate the
transmission and distribution of green electricity.
• Finally, shipping companies could see ammonia transport opportunities, ultimately leading to the development of liquid hydrogen carriers.
On this point, green and blue ammonia transport could increase shipped ammonia volumes in 2030, as compared to the scenario in which
clean hydrogen is not adopted.
Source: TERI; BNEF, McKinsey, India Infrastructure Research

69
Technology Trends
Applicable Standards
For the commercialisation of the hydrogen-based technologies, there is a need for a set of codes and standards to get consistency and
encourage deployment. While some regulations exist around the industrial application of hydrogen, a proper framework of codes and
standards needs to be put in place in the Indian context. Following is the list of key standards of key standards prepared by BIS in this space.
Standards developed for generation of hydrogen

Standard Title
IS 1090 : 2002 Compressed Hydrogen
IS 16061 : 2021 ; ISO 14687 : 2019 Hydrogen fuel quality product specification
IS 16512 (PART 1) : 2016; ISO 16110-1:2007 Hydrogen generators using fuel processing technologies: Part 1 safety
Hydrogen generators using water electrolysis — industrial, commercial, and residential
IS 16509 : 2020 ; ISO 22734:2019
applications
IS 16253 : 2016 ; ISO 26142:2010 Hydrogen detection apparatus — stationary applications
Standards developed for fueling of hydrogen
Standard Remarks
IS/ISO 17268:2020 - Gaseous hydrogen Applicable to receptacle and protective cap (mounted on vehicle), nozzle and communication
land vehicle refueling connection devices Hardware. This document is applicable to refueling connectors which have nominal working
pressures or hydrogen service levels up to 70 MPa.
Draft standards on vehicles running on hydrogen fuel

Standard Remarks
Adoption of AIS 157 (safety and procedural This draft standard will be applicable to CGH2 fuelled fuel cell vehicles of category M&N
requirements for type approval of incorporating: hydrogen fuelling system, compressed hydrogen storage system, hydrogen
compressed gaseous hydrogen fuel cell delivery system, fuel cell system, electric propulsion power management system
vehicles) as Indian standard
Source: BIS, India Infrastructure Research

70
Technology Trends
Key standards on hydrogen fuel system components on vehicles
Standard Remarks
• This standard gives construction requirements for refillable fuel
tanks for liquid hydrogen used in land vehicles as well as the
testing methods required to ensure that a reasonable level of
protection from loss of life and property resulting from fire and
IS/ISO 13985:2006 - Liquid hydrogen, land vehicle fuel tanks explosion is provided.
• It contains requirements for mechanical stresses, thermal
stresses, materials, design for inner tank and outer jacket, design
validation, insulation and accessories along with type test and
routine tests.
• Gives general requirements and definitions for CGH2 and
ISO 12619-1:2014 - Road vehicles — Compressed gaseous hydrogen hydrogen/natural gas blends fuel system components.
(CGH2) and hydrogen/natural gas blends fuel system components — • Construction and assembly requirements , electrical equipment
Part 1: General requirements and definitions and wiring and general instruction details have also been
provided.
• A total of 18 test methods have been prescribed for components.
These are: Hydrostatic strength test, bending moment test,
leakage test, excess torque resistance test, continued operation
test, corrosion resistance test, oxygen ageing test, ozone ageing
ISO 12619-2:2014 - Road vehicles — CGH2 and hydrogen/natural gas
test, electrical over-voltages test, non-metallic immersion test,
blends fuel system components — Part 2: Performance and general
vibration resistance test, brass material compatibility test, non
test methods
metallic material compatibility to hydrogen test, metallic material
compatibility to hydrogen test, pre-cooled hydrogen exposure
test, insulation resistance test, ultraviolet resistance of external
surfaces test and automative fluid exposure test

71
Technology Trends
Other standards on hydrogen fuel system components on vehicles
Standard Title
IS/ISO 12619-3 : 2014 Road vehicles — CGH2 and hydrogen / natural gas blend fuel system components — pressure regulator
IS/ISO 12619-4: 2016 Road vehicles —CGH2 and hydrogen / natural gas blend fuel system components — check valve
IS/SO 12619-5: 2016 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components — manual cylinder valve
IS/ISO 12619-6: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components — automatic valve
IS/ISO 12619-7: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components — gas injector
IS/ISO 12619-8: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components — pressure indicator
IS/ISO 12619-9: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components —pressure relief valve (PRV)
IS/ISO 12619- 10: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components – pressure relief device (PRD)
Road vehicles — compressed gaseous hydrogen (cgh2) and hydrogen / natural gas blends fuel system components
IS/ISO 12619- 11: 2017
– excess flow valve
Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components – gas-tight housing and
IS/ISO 12619- 12: 2017
ventilation hoses
IS/ISO 12619-13 : 2017 Road vehicles —CGH2 and Hydrogen / natural gas blend fuel system components — fuel line in stainless steel
IS/ISO 12619- 14: 2017 Road vehicles —CGH2 and hydrogen / natural gas blend fuel system components — flexible fuel line
IS/SO 12619-15: 2017 Road vehicles —CGH2 and hydrogen / natural gas blends fuel system components — filter
Road vehicles — compressed gaseous hydrogen (CGH2) and hydrogen / natural gas blends fuel system
S/ISO 12619- 16: 2017
components — fittings

72
6. Cost of Production and Investments

❖ Cost of Green Hydrogen Production
❖ Key Factors Impacting Cost
❖ Emerging Financing Options
❖ Cost and Investment Outlook

73
Cost of Green Hydrogen Production

Green hydrogen is an extremely promising source of energy; it has the potential to power industries while helping countries decarbonise their
economies. But it also carries significant uncertainty in terms of demand and production costs.
Proposed Aspirational Green Hydrogen Price Targets in India
Year 2025 2030 2050
Green H2 Price $1.50/kg $1/kg < $1/kg
Source: NITI Aayog
According to a presentation by Kashish Shah, Energy Finance Analyst at IEEFA, at Renewable Watch’s Green Hydrogen Conference 2022,
Green H2 fuel will be cost competitive with diesel by 2023; while Green H2 will be cost competitive with grey H2 before 2025.
Price of green hydrogen vs grey hydrogen projected in India Price of green hydrogen vs diesel projected in India
Grey Hydrogen Green Hydrogen Diesel Hydrogen
6 5.5 30 25.17
5 25
4 20
21.89 21.89 21.89
US$/kg
US$/kg
3 2.5 15 10.82
2 10 6.91
1.6
1 1.6 1.6 1 5
0 0
2023 2025 2030 2022 2025 2030
Considerations made:
• Estimated delivered cost of installed solar in India in 2025 is $ 0.012/kWh; Estimated cost of installed solar in India in 2030 is $ 0.006/kWh.
• 55 kW is needed for 1 kg of H2 – assuming 0.029 USD/kWh, this is $ 1.62
• For a long-haul truck- 100 km distance, 40 litres of diesel is required; equivalent hydrogen requirement is 7.72 kg.
• Pricing is without taxes (both state & central).
• Dealer's margin has been removed.
Source: India Infrastructure Research; IEEFA; NITI Aayog.

74
Cost of Green Hydrogen Production

Global Cost Comparison
• India aims to establish itself as a leader in green hydrogen. However, there currently only a handful of producers exist in India, and only
a handful of those have decades of expertise producing electrolysers.
• China is the leader in the deployment of electrolysers (at 200 MW), while Europe has the biggest proportion of proposed investments in
the industry (about 30%), according to a 2022 report by the Hydrogen Council.
• Despite being a net importer of natural gas, India has some of the lowest levelized cost of electricity (LCOE) in the world for solar and
wind power. It is more advantageous to increase green hydrogen production in India rather than grey or blue hydrogen production,
given the promises of electrolyser cost and LCOE drop.(as per NITI Aayog and RMI analysis).
Price of Green Hydrogen ($/kg) in key global markets (as of March 2022)
UK 18.47
Netherlands 14.66
India 5.5
USA 5
UAE 4.51
Saudi Arabia 3.23
Qatar 2.62
Western Australia 2.61
0 2 4 6 8 10 12 14 16 18 20
Source: India Infrastructure Research; Hydrogen Council; S&P Global

75
Key Factors Impacting Cost

• Green hydrogen prices are primarily determined by the cost of electrolysers and electricity.
• Beyond that, there are the operating costs, transmission and distribution (T&D) costs, and wheeling charges for electricity as well as
specific local duties and taxes like the goods and services tax (GST) in India.
• The supply chain model, distance to demand centre, system design, and utilization factor are additional factors that strongly influence the
delivered cost of hydrogen.
Levelized Cost of Production (LCOP)
8.00 6.2
5.5 5.2
6.00
4.5
LCOH ($/kg)
4.00
2.6
1.9 2.3
2.00
1.2 1.3
0.00
Current - Grey Current- Alkaline Current- Alkaline 2030- Alkaline 2050- Alkaline Current- PEM Current- PEM RE 2030- PEM RE 2050- PEM RE
Hydrogen Grid RE RE RE Grid
Capex cost Energy cost Opex cost Other cost RLNG $12.5/mmbtu
• Cost competitiveness for green hydrogen remains contingent upon several factors, including reduction in capital cost for the electrolyser
(estimated by ICRA at 850 US$/KW for alkaline and 1,000-1,100 $/kW for Polymer Electrolyte Membrane (PEM) -based), cost of renewable
energy procurement, efficiency of electrolysers and viability of storage/availability of banking for RTC supply from renewable sources.
• As per ICRA estimates, the current scenario of landed renewable energy tariff (including intra-state wheeling/transmission charges in
captive mode) at Rs 3.5 per unit, the LCOP of green hydrogen is estimated to range between $4.5–5/kg. For the co-located projects
(electrolyser and renewables capacity at same location), LCOP is estimated to decline by $0.5/kg due to savings in intra-state open access
charges.
Source: RMI; ICRA; India Infrastructure Research

76
Emerging Financing Options
In the global rollout of green hydrogen projects, funding issues are a major concern. While several green hydrogen initiatives already have
considerable financial partners through prearranged collaborations with banks or financial organisations, initiatives are not always successful in
obtaining finance.
• The ability to deliver at a low cost will be a function of the high load factor green power; the cost and efficiency of the hydrogen and ammonia
plants; and the cost of capital.
• Successful green hydrogen/ammonia export projects will have been selected by a buyer based on a formal or informal competitive process as
the supplier of reliable low-cost hydrogen.
• The use of low-cost capital (debt and equity) will play its part in lowering the cost of green hydrogen, and both debt and equity investors have
a substantial appetite to invest in the hydrogen sector.
Debt Equity
The principal sources of debt for a green hydrogen project would be: The initial investors in the project are likely to be companies that
concessional finance; international and domestic commercial banks; the have the engineering and project management skills along with
project bond market; export credit agencies; and multilateral sizeable balance sheets required to develop a project of the scale
development banks. and complexity required. They are likely to be major resource
companies or global utilities.
Financing Outlook
• Lenders will likely be prepared to accept completion risk where the technology is reasonably established and if there is a robust contracting
strategy.
• Less mature technologies, such as liquid hydrogen, would be expected to demonstrate a successful track record of construction and operation
before lenders would accept pre-completion exposure.
• As the learning curve reduces capital costs, the need for government support will reduce and ultimately no longer be required.
• Long-term, fixed price, government supported contracts provide a strong basis for financing. As that support is removed, investors will be
required to accept price risk for an emerging green hydrogen market. This could slow investment until commercial long-term contracts, or a
long-term futures market emerge.
Source: India Infrastructure Research, Oxford Institute of Energy Studies

77
Cost and Investment Outlook

• The biggest barrier for large scale green hydrogen adoption is the cost of production which would need to compete with
conventional technologies in India. These conventional technologies may include grey hydrogen, natural gas, diesel, fuel oil and
coking coal.
• According to Mckinsey and REC analysis, the current cost of green hydrogen production is ~ $4-5 per kg. More than 50 per cent
reduction in cost will be needed for large scale adoption.
Required cost of hydrogen production for breakeven against conventional technologies in India
6
Current production costs of green hydrogen- $4-5/kg
5
4
$/kg
3
1.9 1.9 1.9 1.9 1.7
2 1.3 1.3 1.5
0
Refinery Ammonia Methanol Natural Gas FCEV Steel Marine Fuel Storage
Blending
Cost of Storage and Transport

• Storage costs could potentially alter the cost economics of standalone renewables and RTC renewables-based green hydrogen production,
which can have higher capacity utilization.
• Availability of cheap natural storage like salt and rock caverns in India needs to be assessed further given the high cost of storage in
pressurized steel tanks and the energy costs associated with chemical storage.
• Transportation cost is another factor that can impact cost economics. Pipelines become cost-effective once hydrogen demand exceeds tens of
tonnes per day.
• Near-term development for large-scale industrial consumption could be located closer to production to minimize transportation and storage
costs.
Source: Mckinsey & Company; REC; ICRA; India Infrastructure Research

78

Cost of Electrolysers
• Key cost drivers for electrolysers include cost of stack (50% – 60% of total cost), power electronics (15% of total cost), gas conditioning
(10% - 15% of total cost) and balance of the plant (15% - 20% of total cost) depending upon the type of electrolyser being used.
• According to ICRA, CAPEX costs can reduce from US$900 - $1,000/kW at present to around $100 - $200/kW in the future as
electrolyser capacity increases massively in the future.
• Reduced energy consumption, start-up time, stack costs along with increased stack life, module and stack size and load can reduce cost
of electrolysers.
1,200 CAPEX Cost of Electrolysers ($/KW)

1,000
13%
800
600
18%
400
200
0
2020 2025 2030 2035 2040 2045 2050
Conservative Learning Rate Optimistic Learning Rate
Technology Alkaline PEM SOEC (Not yet commercialised)

Timeline 2020 2050 2020 2050 2020 2050
$800-900 per $1,000-1,100
Capex $200 per kW $200 per kW $2,800 per kW Under R&D
kW per kW
Efficiency 63-70% >75% 56-60% 70-75% 74-81% >85%
>100,000-
Stack Lifetime (hours) 90,000-100,000 >1,00,000 60,000-90,000 40,000-60,000 >90,000
120,000
Source: ICRA, India Infrastructure Research

79

Future Price Trajectory of Green Hydrogen
Multiple recent studies have estimated the future price trajectory of green hydrogen. India Infrastructure Research presents
estimates and analysis from three studies conducted by NITI Aayog, TERI and CEEW, respectively:
• According to NITI Aayog's estimate, in the best-case scenario, the cost of green hydrogen can decrease to roughly $1.60/kg by
2030 and $0.70/kg by 2050 due to predicted price declines for both electrolysers and renewable energy sources.
• By 2030, if not sooner, green hydrogen could be economically competitive with grey hydrogen. Additional elements, such as a
future carbon tax on fossil fuels, may also help make green hydrogen more affordable.
• Green hydrogen produced by standalone renewable systems or through RTC renewable arrangements will be more economical
than electrolysis connected to the grid due to the low LCOE of renewables.
• However, the analysis also indicates that while green hydrogen production from isolated renewables has a longer-term
promise, RTC renewables might be very cost-competitive today and in the near future, if the LCOE decline expectations
materialise.
Projected price trajectory of solar-green hydrogen production based on decline in electrolyser and renewable costs
2030 2050
Green hydrogen from on site renewables $1.7 - $2.4/kg $0.6- $1.2/kg
Green hydrogen from RTC Renewables $2.1/kg $0.9/kg
Grey hydrogen $1.8 - $2.7/kg $1.9 - $2.9/kg
Source: NITI Aayog; RMI; India Infrastructure Research

80
According to TERI, by 2050, nearly 80 per cent of the hydrogen According to the CEEW, only an aggressive cost reduction
produced in India is projected to be green hydrogen, which will (optimistic scenario) of electrolyser and storage technologies
become the most competitive form of hydrogen production by can reduce hydrogen production costs to $3 per kg by 2030
around 2030. and $2 per kg by 2040.
Projected cost of green hydrogen - TERI Projected cost of green hydrogen - CEEW
300-440
246
164
Rs per kg
Rs per kg
150
2020 2030 2030 2040

Conversion rate: 1$ = Rs 82
• At these prices, green hydrogen will easily compete with blue hydrogen. The high cost of natural gas imports and the lack of natural gas reserves
will facilitate the commercialisation of green hydrogen in India.
• Interestingly, costs are lower in the case of CEEW than TERI initially in 2030. However, by 2050, cost projected by TERI is lower than that of
CEEW.
Source: India Infrastructure Research, TERI, CEEW

81

Investment requirement for India’s green hydrogen ambition (IEEFA analysis)
Hydrogen Production Several obstacles must be solved in order for India to
Electrolyser Capacity 1 MW reach its green hydrogen goals for investment:
H2 Production 18 kg/hour • The lack of an end-use obligation on the current or

Electrolyser CUF 60% potential hydrogen users is one of the key
components of India's green hydrogen plan that is still
Annual H2 Production at 60% CUF 96 tonnes pa lacking.
Electrolysers
• As a result, there is uncertainty over the terms of
India’s target by 2030 5 mtpa hydrogen project offtake, which lowers investment
and raises finance costs.
Electrolyser Capacity required for 5MT 52 GW
pa
• Businesses are reluctant to make big investments in
Capex for 1 GW Alkaline systems $1.5 billion/GW green hydrogen without first getting to know their
Total Capex on electrolysers $78 billion potential customers.
Solar • The absence of a global consensus on what defines

Solar capacity required 157 GW "green" or "clean" hydrogen is another major
obstacle.
Capex for 1 GW solar $0.5 billion/GW
Total capex on solar $82 billion

• Lastly, it is necessary to reduce capital expenses (such
as those for electrolysers and balance of systems) as
Total capex required for electrolyser $160 billion well as, more crucially, costs associated with the
systems and solar power production and distribution of renewable energy, to
attract greater investments in the sector.
Source: IEEFA; India Infrastructure Research

82
Future Outlook and Projections (Till 2070)

❖ Capacity Based on Project Pipeline
❖ Capacity Outlook
❖ Required Renewable Energy Capacity
❖ Key Issues and Challenges

83
Future Outlook and Projections
Capacity Based on Project Pipeline

India Infrastructure Research tracked 68 upcoming projects in the green hydrogen space. Projects with a total of 19 MMT per annum of
green hydrogen or green ammonia production capacity have been tracked. Meanwhile, 11 projects are dedicated to electrolyser
manufacturing.
• According to the data tracked by India Infrastructure Research, Karnataka is expected to witness the highest capacity additions in the
green hydrogen space. Other top states would be Odisha, Gujarat, Andhra Pradesh and Rajasthan.
• Similarly, in terms of applications, a majority of green hydrogen projects are expected to be set up for industrial applications followed
by gas blending and transport and then microgrid applications.
Top emerging states for green hydrogen production (based Key emerging application areas for green hydrogen
on tracked project pipeline) (based on tracked project pipeline)
Rajasthan 1.37
Microgrid Gas blending
12% 19%
Odisha 4.31 Transport
19%
Karnataka 5.9
Gujarat 2.04
Industrial use
(like
Andhra Pradesh 2.01 refineries,
chemical units
and fertiliser
0 1 2 3 4 5 6 7 plants)
MMT per annum 50%
Note: Capacity is unavailable for some projects Note: This pie chart is based on the number of projects and not the capacity.

84
Capacity Outlook
• India has a target to reach 5 MMT of annual green hydrogen production by 2030 which can go up to 10 MMT by 2030 in an optimistic
scenario. Meanwhile, NITI Aayog projects that by 2050, roughly 94% of India’s total hydrogen demand of 29 MMT will be met by green
hydrogen.
• Using these estimates, India Infrastructure Research carried out an analysis to project the future capacity outlook for green hydrogen market
in India in two scenarios.
• In the likely scenario, the green hydrogen market is expected to grow at a CAGR of 8.8% to reach 27.01 MMT of annual production by 2050
starting from 5 MMT in 2030. Moreover, required electrolyser capacity is expected to be 48 GW by 2030, which is expected to grow to 259.31
GW by 2050.
• In the optimistic scenario, the green hydrogen market is expected to grow from 10 MMT of annual green hydrogen production to 54.02 by
2050. Meanwhile, the electrolyser capacity is expected to be 96 GW by 2030 and 518.62 GW by 2050.
Projected green hydrogen and electrolyser capacity

30 300
27.01
25 250
20 200
17.72
MMT
GW
15 150
11.62
10 100
7.62
5 5.00 50
48.00 73.18 111.57 170.09 259.31
0 0
2030 2035 2040 2045 2050
Electrolyser capacity (GW) Green hydrogen (MMT)
Note: This analysis assumes that 1 MMT green hydrogen production requires 9.6 GW electrolyser capacity
Source: IRENA (2020); MNRE (2023); Niti Aayog; Goldman Sachs (September 2020); India Infrastructure Research

85
Required Renewable Energy Capacity

• On the basis of projected green hydrogen and electrolyser growth, India Infrastructure Research estimates the required renewable energy
capacity to be 96 GW by 2030 in the likely scenario.
• This required renewable energy capacity will go up to 518.62 GW by 2050 in the likely scenario.
• Meanwhile, required renewable power capacity is expected to be 192 GW and 1,037.24 GW by 2030 and 2050 respectively in the optimistic
scenario.
Projected required renewable energy capacity Required renewable energy capacity in different scenarios
600 Likely Optimistic
scenario scenario
518.62
500 Green hydrogen (MMT)
By 2030 5.00 10.00
400 By 2050 27.01 54.02
340.18
GW
300
242.77
Electrolyser capacity (GW)
By 2030 48.00 96.00
200
146.36 By 2050 259.31 518.62
96.00
100
Renewable energy capacity (GW)
0 By 2030 96.00 192.00
2030 2035 2040 2045 2050
By 2050 518.62 1,037.24
Note: This analysis assumes that 1 GW electrolyser capacity requires 2 GW renewable capacity
Source: IRENA (2020); MNRE (2023); Niti Aayog; Goldman Sachs (September 2020); India Infrastructure Research

86
Key Issues and Challenges

• As India’s green hydrogen market is still developing and is in a nascent stage, there are a few challenges and issues that the industry is
already facing or is likely to face in the coming years. These are mainly related to high capital costs and policy gaps.
• However, as seen recently, there have been a host of policy interventions with regards to ISTS waivers, incentives for green hydrogen
production and manufacturing of electrolysers. Thus, the situation is surely going to improve in the coming years.
Key issues and challenges

High costs: While hydrogen has been in use since decades for various industrial purposes, green hydrogen is still costly to produce due to
expensive electrolysers. Imported electrolyser technology is a major reason for this, and costs are expected to go down with use of domestic
technology, increasing demand for green hydrogen uptake and declining costs of renewable power projects.
Insufficient infrastructure: Hydrogen has limited dedicated infrastructure. Thus, there needs to be significant development of
infrastructure for producing, transporting, and storing hydrogen in India.
Energy losses: Green hydrogen incurs significant energy losses at each stage of the value chain including about 30-35% energy loss in
electrolysis, 13-25% loss in conversion of hydrogen to other carriers (such as ammonia) and further losses in transporting hydrogen
which requires additional energy inputs.
Storage risk: The storage and use of hydrogen is challenging due to its ease of leaking as a gaseous fuel, low-energy ignition, wide range
of combustible fuel-air mixtures, buoyancy, and its ability to embrittle metals.
Financing risks: With respect to financing, banks are not able to take all the financing risks for the capital-intensive green hydrogen and
green ammonia projects. Further, since clear definitions and standards are lacking, there is a bigger issue in terms of bankability of projects
Demand creation for green hydrogen: While various industries use hydrogen, there is currently no provision to mandate use of green hydrogen.
In terms of export potential, there are many other large emerging markets that might be as (if not more) competitive on the global stage.
Overall, these challenges are expected to be addressed in due course with increase in uptake and technology advancements. Going
forward, it is important to address the policy gaps in terms of standards, definitions of green hydrogen and the offtake arrangements.

87
Industry Insights
❖ Gurdeep Singh, Chairman and Managing Director, NTPC
❖ Narendra Nath Veluri, CEO, Agency for New and Renewable Energy Research and
Technology
❖ Karthik Ganesan, Vice President, Business Development, Reliance Industries
❖ Ranjit Gupta, Founder and CEO, Ocior Energy
❖ Shiromani Kant, General Manager, Business Development, ACME Group
❖ Kapil Maheshwari, CEO, Welspun New Energy
❖ Vineet Mittal, Chairman, Avaada Group
❖ Dr Arul Shanmugasundaram, Executive Director, Operations, Ayana Power
❖ Vivek Singla, President and Head, Hydrogen and EV Businesses, ReNew Power
❖ Sudhir Pathak, Head (CDE & QA), Hero Future Energies
❖ Arnava Sinha, Vice President – New Energy Business, Greenko Group

88
Industry Insights
Gurdeep Singh, Chairman and Managing Director, NTPC

• “We have been doing a lot of studies and preparatory work and are carrying out three pilot
projects. One of these is in Ladakh where solar energy will be used to produce hydrogen, which
will be used to run hydrogen-powered buses. By September or October this year, we will be
running two buses that will be purely powered by hydrogen. The second project involves
injecting green hydrogen into the piped natural gas (PNG) pipelines at NTPC Kawas in Gujarat.
For this, hydrogen is being produced from floating solar projects. The third one is of capturing
CO2 and combining it with green hydrogen to produce green methanol.
• We have already started working on a carbon capture and utilisation pilot project. This is being
taken up at the Vindhyachal thermal power plant. We have already commissioned a carbon
capture plant and our green hydrogen plant is near completion. With carbon dioxide and green
hydrogen, we will be producing green methanol (10 TPD). We are trying to commission the
project by the year-end.
• The work at the largest renewable energy park (4,750 MW) at Khavada in Gujarat has started.
We may use some of that energy to produce green hydrogen or green ammonia, which will be
supplied to the fertiliser sector or refineries. This can also be exported. So, we are working
seriously in those areas, but the constraint as of now is the absence of enough electrolyser
manufacturing capacity. We are discussing with many companies to overcome this bottleneck.
• Also, in Andhra Pradesh, we are developing a hydrogen hub across 1,200 acres of land, which
will have an entire ecosystem for green hydrogen, in addition to its production.
• We are preparing our gas-based power plants to make them suitable for firing green hydrogen.
However, it is going to take a little longer time. We are also exploring the possibility of green
hydrogen production from biomass and municipal solid waste, wherein you can generate
hydrogen, which would also be considered green hydrogen.”

89
Industry Insights
Narendra Nath Veluri, CEO, Agency for New and Renewable Energy Research
and Technology
• “As a green hydrogen hub, Kerala can serve the mobility, refineries, fertiliser and shipping
sectors as well as become a strategic export hub through a variety of interventions such as
transport, renewable power generation and green shipping using ammonia and liquid hydrogen.
Given the presence of an enabling geographical, economic and policy environment, Kerala is
expected to become an export hub for green hydrogen. With major ports in Vizhinjam, Kochi,
Beypore and Azhikkal connected by seamless inland waterways in the west coast canal running
from Kovalam to Bekal, the state also possesses the required factors to become India’s
transshipment hub.
• The evolution of clean transport would also facilitate greater adoption of green hydrogen given
the state’s demand for 30 kg of hydrogen per day per bus/truck. Kerala has set a target of
introducing 3,000 buses, 1,000 trucks and 100 boats powered by hydrogen internal
combustion engines, fuel cells and methanol. Personal rapid transit pods have been planned for
10 cities to function as the feeder network for the Kerala Rail Development Corporation (K-Rail)
and for last-mile connectivity. Additionally, an important use case for hydrogen exists in its
blending with natural gas and LPG. Finally, hydrogen-power is another way to provide storage
and flexibility using fuel cells.
• The state has taken a number of initiatives in recent years to become a front runner in the adoption and production of hydrogen.
Travancore Cochin Chemicals (TCC), a public sector firm, aims to be a major hydrogen supplier. It has a chlor-alkali unit which generates
hydrogen as by-product of the production of caustic soda. Hydrogen from TCC has been identified as cost-effective enough to meet the
need of hydrogen fuel cell buses in the state. The hydrogen acquired from TCC will serve both water transport vessels linked to the Kochi
metro and public transport vehicles.
• Further, the Vytila Mobility Hub will host a major hydrogen dispensing station. Ten feeder hydrogen buses are also planned for the
public transit system connecting the Kochi metro.
• Additionally, CSL has partnered with KPIT Technologies Ltd. to build the country’s first indigenous hydrogen fuel electric vessel. Other
than this, BPCL and Air Products are exploring low-carbon hydrogen production at the Kochi refinery.

90
Industry Insights
Narendra Nath Veluri, CEO, Agency for New and Renewable Energy Research
and Technology
• The state will facilitate green hydrogen hub-related investments in around 1,100 acres of NTPC’s land at the Rajiv Gandhi Combined
Cycle Power Plant, Alappuzha, fueled by imported and indigenous naphtha, where NTPC is seeking state assistance for green investment.
A 92 MW floating solar power plant has been set up on the lake adjacent to it and will serve as an ideal hub for green hydrogen
development. Going forward, the state government will take a leading role in building critical infrastructure to create a robust hydrogen
ecosystem and devise new policies from time to time. A centralised hydrogen storage facility will also be developed in Kochi in proximity
to major consumption points. Kerala has several proposals in the works to enable it to become a global green hydrogen hub. These
include:
• Kochi Green Hydrogen Hub (KGH2) by IH2A: The proposal envisages potential capital expenditure of $575 million, to build a green
hydrogen plant with a capacity of 60 tonnes per day. The plant will include a 150 MW electrolyser and storage infrastructure which would
enable it to achieve gigawatt scale in the long run. The plan focuses on the transport use case in the first phase, aligning with the state
government’s plans for zero-emission transport, to power hydrogen-ICE retrofitted bus fleets of 60 buses and build the required
infrastructure. In the second phase, industrial demand for green hydrogen from refineries, and fertiliser and chemical plants is expected to
drive capacity expansion and scale up the KGH2 hub.
• Green hydrogen valleys: The Department of Science and Technology, Ministry of Science and Technology, has invited proposals to set up
hydrogen valleys under Mission Innovation scheme to demonstrate how the entire value chain of hydrogen as an energy vector can be
integrated into one system. Kerala aspires to develop two green hydrogen valleys in Kochi and Thiruvananthapuram.
• MoU with Port of Rotterdam: The department of ports, government, of Kerala, entered into an MoU with Port of Rotterdam in October
2017 the explore the possibility of cooperation in ports, logistics and related projects. The MoU shall be renewed to explore green hy-
drogen opportunities.
• Exploring partnership with Hamburg Port Authority to set up a hydrogen hub at Kochi: In terms of TEU throughput, Hamburg is the third-
busiest port in Europe and a potential partnership may result in further streamlining the hydrogen economy of Kerala.
• Exploring possibility of using peat gas for conversion to grey hydrogen or power generation with carbon capture technology: Areas of
biogenic gas accumulation at depths of 5 m and 17-22 m at two study areas of Alappuzha peatlands in south-west India are being
explored.

91
Industry Insights
Karthik Ganesan, Vice President, Business Development, Reliance Industries

• “We are a participant in the production-linked incentive (PLI) scheme for solar
and battery cell manufacturing. Therefore, we are investing heavily in building
the entire ecosystem for the new energy sector, which includes hydrogen,
solar energy and batteries.
• The company is also looking for green hydrogen applications within its mobility
division. The company has produced electric fuel cell vehicles and buses. In
February 2023, RIL and Ashok Leyland unveiled India’s first internal
combustion engine-powered heavy duty hydrogen trucks. The prime minister
flagged off the vehicle in Bengaluru during the India Energy Week. Reliance
can implement this on a large scale, both on the retrofit model and on the
new car model. The company anticipates that this will kick off a beneficial
cycle of using hydrogen as a fuel.
• Today, we don’t think it is important to consider hydrogen’s colour. Hydrogen

production must, of course, be environmentally friendly; as it becomes
economically feasible, everyone will be able to do so. Our viewpoint is that we
must develop a viable use case for hydrogen, which is largely overlooked in the
global smog of subsidies and market distortions. India would not be able to use
it since it lacks the resources necessary to consistently fund the demand side of
the equation. As a result, the company is working to innovate and find a
solution.
• Reliance is now working on some pilot-scale electrolyser projects. We have
also made some progress in terms of hydrogen fuelling.”

92
Industry Insights
Ranjit Gupta, Founder and CEO, Ocior Energy

• “The reason for choosing India is that it is a very large market for green hydrogen by itself. We
are looking at doing projects in Odisha, Andhra Pradesh and Gujarat. The reason we chose the
MENA region is that the initial demand for green ammonia and green hydrogen is coming from
the European Union (EU), and the MENA region makes more sense for supply of green
hydrogen/ammonia to the EU. We hear that the EU hopes to import 10 million tonnes of green
hydrogen per annum by 2030, which is a really large opportunity for companies like us. Thus,
we are developing a couple of projects in the MENA region, including a project in Egypt.
• The first two projects that we are looking at are in Odisha and Gujarat. The Odisha go-
vernment has been very helpful in furthering the cause of green hydrogen. They have come out
with a very good green hydrogen policy. We expect the Gujarat government policy to also come
out soon. The process of preparing feasibility reports is ongoing, and once the policy is clear,
the development can pick up speed.
• Hopefully, over the next six months to a year, the structure of offtake contracts will be better
known. Unfortunately, there is a difference between how traditional oil and gas companies
work, and how renewable energy companies work. For renewable energy companies, all the
capex goes in on day one, and therefore the energy produced has a fixed cost. The cost of
operation is very low, and therefore, when you produce green hydrogen or green ammonia
from a renewable energy project, you expect to bear a steady cost. On the other side, the oil
and gas businesses are very dynamic, and the prices change on a day-to-day basis. Therefore,
buyers of hydrogen and ammonia have become used to floating prices in the market. There is
some jostling going on, and we hope that certain frameworks will emerge that will help closing
contracts. There is a lot of interest, and many offtakers want to get into contracts. However, ev-
erybody is seeing a need for finalising frameworks for contracts. We strongly believe that
parity between grey and green hydrogen, and ammonia will probably be achieved over the
next six to seven years.

93
Industry Insights
Ranjit Gupta, Founder and CEO, Ocior Energy

• Challenges with green hydrogen production arise at two different levels. One is at the level of the project itself, specifically project
development, with related challenges of land and other issues. The other challenge is related to the bankability of a project, and offtake
is the biggest issue here. A related issue is the rush towards market distortion introduced by the Inflation Reduction Act and the
European Hydrogen Bank, whereby they give unreasonable subsidies that can have a very long-term impact on how the market develops
across the world. Thus, it will be challenging for developers outside of the EU and the US.
• Other issues that we are facing on a broader scale concern the definitions of green hydrogen and green ammonia, and a lack of clarity
on banking of renewable power for production of green ammonia and green hydrogen. As a lot of the capex goes in upfront, many
parameters are taken into consideration when designing a project. Thus, uncertainty regarding various certifications, offtake or even
subsidies impacts the debt, as lenders want certainty on these matters even for small-scale projects. These challenges could impact the
profitability of projects going forward, and it has become very important to address them upfront, when the project is being planned.”
Shiromani Kant, General Manager, Business Development, ACME Group

• “Post the extensive experience in the solar segment, the ACME Group began to consider forward
integration. Later, the company started to plan for the production of green hydrogen and green
ammonia. As a result, the company went ahead and opened the world’s first integrated green
hydrogen and green ammonia plant in Bikaner, Rajasthan, with a modest throughput capacity of 5
tonnes per day (tpd) of green ammonia production. But the goal was not to commercialise it; it was
essentially a semi-commercial pilot project at the time, because the concept itself was weak and there
was no reference point as such.
• Since November 2021, we have been operating this plant at various levels. The agenda is to derive the
maximum amount of learning from it, and incorporate these learnings in our upcoming larger-scale pl-
ant in Oman, which will be commissioned in two phases. The company has also signed MoUs with
various state governments, including Tamil Nadu, Karnataka, Odisha, and Rajasthan, to establish
projects of similar scale in India. Therefore, we anticipate constructing 1.2 million metric tonnes
(mmt) of green ammonia production capacity, and as a group, the company has a stated aim of in-
creasing the production capacity to 10 mmt by 2030.”

94
Industry Insights
Kapil Maheshwari, CEO, Welspun New Energy

• “There are a few challenges that the green hydrogen industry faces with respect to its adoption.
First, the costs of green hydrogen pose a large barrier for the industry. The price reduction can
be achieved in two ways – either by deploying a technology roadmap for bringing down costs or
by achieving economies of scale. When we compare the major price reduction levers, it is
possible to imagine achieving the country’s vision of attaining a hydrogen production cost of
$1 to $2 per kg. However, it can only be achieved if we move towards reducing round-the-clock
(RTC) renewable power costs significantly.
• The second challenge pertains to electrolysers. This could be related to capital expenditure,
which is a dollar per kilowatt for electrolysers; or the problems of efficiency improvement in
electrolysers, which will impact how many kW-hours is produced per kg of hydrogen, or the
lifetime of an electrolyser, impacting the number of cycles it can execute.
• The third major challenge is financing these projects and bringing down the weighted average
cost of capital for them. A lot of entities conduct pilot projects, showcasing their technologies
and developing plans to deploy such projects at scale. Thus, projects have to be more viable and
bankable. These are all part of the upstream challenges faced by the industry.”
• “The midstream challenges pertain to storage and transportation issues. For the midstream segment, I feel that it is important to create
good infrastructure for the storage and transportation of green hydrogen. There are various ways in which we can store and transport
green hydrogen, and there will be a need for infrastructure for high pressure compression if pipelines are to be used.
• Meanwhile, downstream challenges pertain to the usage of this kind of hydrogen. If the sector where we are attempting to use hydrogen,
such as steel, uses coal-based direct reduced iron (DRI) furnaces, then it will be very difficult for the industry to quickly change to hydrogen
fuel. However, if it uses gas-based DRI, then it can think of blending some hydrogen to test the limits. Thus, I believe that while the trans-
port/ mobility sector could contribute to a lesser degree to the overall usage of green hydrogen, accounting for 8 to 10 per cent, it will
largely be deployed in the industrial fuels and feedstock sector.”

95
Industry Insights
Vineet Mittal, Chairman, Avaada Group

• “In the green hydrogen and green ammonia segments, we are looking at awarding an engineering,
procurement and construction contract early in 2023.
• In terms of technology, we are open to every technology available. It all comes down to how many
units of electricity are needed per unit of hydrogen production. The government’s role has been
proactive in this space and several committees have been formed. The government intends to
succeed in this industry without compromising on safety and ensuring that the latest technologies
are promoted.
• We are actively looking at acquiring electrolyser companies. The company’s intent is to control the
whole supply chain of the green hydrogen/green ammonia space. Going forward, we are aiming for
30 GW of solar, wind and pumped hydro generation by 2030. We will also export the first million
tonnes of green ammonia that we produce. We have received the preliminary approvals from a
bank to fund the project.”
Dr Arul Shanmugasundaram, Executive Director,

Operations, Ayana Power
• “We have a PEM-based solar pilot for green hydrogen. It targets to produce about 70 kg of
hydrogen per day. As our pilot is relying purely on solar power, our technology choices are limited
because we cannot rely on alkaline as it needs RTC power. Also, we wanted a technology that can
work with power variations and not be dependent on drawing banked power or drawing from other
sources. We intend this pilot to be an R&D investment to learn the market and see how the market
develops in terms of demand.
• There are a bunch of issues that have emerged with the pilot project. For instance, the Petroleum
and Explosives Safety Organisation rules are still fluid. The safety requirements are not clear and
issues regarding water disposal are also there. Also, it is not clear whether returns in the market
from green hydrogen sale will be sufficient.”

96
Industry Insights
Vivek Singla, President and Head, Hydrogen and EV Businesses, ReNew Power
• “Our 60-70 per cent of the total capital cost and efforts are for establishing green hydrogen,
ammonia and its diverse projects. We have been scouting throughout the world and looking across
locations for economical sources of renewable power starting from Latin America to Australia and
various geographies.
• We have already identified a few locations in India and abroad and we would like to establish gr-
een ammonia projects of 1 million tonnes per annum to start with and it will cost around $7-$8
million including the cost of renewable energy.
• We plan to produce 5-6 million tonnes of green ammonia over the next 8-10 years. Each project
will require renewable power of about 5 GW.
• We have been looking for over five sites with three sites in India and two abroad.”
Sudhir Pathak, Head (CDE & QA), Hero Future Energies

• “We have a strategic partnership with Ohmium, a polymer electrolyte membrane (PEM)-based
electrolyser manufacturer and are biased towards PEM due to its higher space density and its
scalability. However, overall, at present, we are agnostic towards technology because going
forward, the key determinant for choosing the right technology will be the levellised cost of
hydrogen.
• With fluctuating energy and oil prices, it is a far-sighted approach to invest or subsidise R&D and
arrive at the 1-1-1 goal for green hydrogen as soon as possible. As an organisation, we aspire to
reach 1 GW of electrolysis capacity, which produces 400-500 tonnes per day of green hydrogen
over the next three years.“

97
Industry Insights
Arnava Sinha, Vice President – New Energy Business, Greenko Group

• “Green hydrogen is emerging as the fuel of choice in India’s energy transition. One of the key
advantages of green hydrogen/green ammonia is that it is an inflation-proof product. The
cost of production will not fluctuate because of geopolitical variables. With an increasing
focus on the green molecule segment, Greenko has planned to establish pumped storage
projects of 100 GWh capacity to provide RTC power with the lowest-cost electrons over the
next five years.
• Our immediate plan entails the development of medium- and large-scale green ammonia
plants with an aim to produce more than 3 mt of green ammonia over the next five years. To
this end, the company is in the process of partnering with India’s oil and gas giant, ONGC, to
establish a 1 mt green ammonia project. Moreover, we are now actively participating in green
hydrogen projects and tenders.
• An important parameter for executing green ammonia projects is the ability to secure raw
materials. Moreover, sourcing water will be a key challenge over the coming years as the
scale of projects increases. While fresh water may be used for projects at present, its sustained
supply for a project timeline of 20-25 years may not be ensured. Moreover, as multiple plants
are developed across the country, utilising fresh water as a raw material may become a great
challenge. Thus, identifying and developing the necessary desalination technologies for sea
water will play a significant role in advancing in the sector.”
• Currently, there are four key challenges in green hydrogen/ammonia production that demand attention from stakeholders. The first is
market development, and the second is the development of standard definitions of what is locally and globally acceptable. Skill
development is another crucial challenge, given the rising demand for the specialised skill sets needed across the green hydrogen supply
chain. Finally, and most importantly, creating a robust manufacturing set-up remains a crucial limiting factor in India’s green hydrogen
journey.

98
Industry Insights
Arnava Sinha, Vice President – New Energy Business, Greenko Group

• “Moreover, our ecosystem is not yet ready for green hydrogen to be supplied as the final product to an offtaker, although transmission
through pipelines is feasible in some cases. Green ammonia can play the role of a vector through which hydrogen can be carried. But this
use case of ammonia introduces another crucial challenge in the long run. As the industry progresses, and green hydrogen storage and
transport are further established, the role of ammonia may diminish, rendering ammonia plants redundant.
• Despite such challenges, in the short run, green ammonia as a vector seems to be a plausible solution for green hydrogen transmission.
Additionally, the greening of the hydrogen used in refineries is perceived as a key challenge due to several of these refineries being
situated in the deep hinterlands, away from the coasts. However, the key is to focus on gradual replacement of hydrogen in refineries
rather than trying to develop a plan to replace all of the hydrogen used in refineries at once. Replacement of hydrogen with green
hydrogen must first be initiated in refineries closer to the coast, where such a transition is feasible given the present ecosystem. This can
then trickle down towards refineries in the hinterland as the ecosystem develops further and allows such a replacement to be
economically and operationally feasible.
• We are implementing a 200 tonne per day pilot green ammonia project in Himachal Pradesh. Since this is a commercial-scale project, it
must be feasible in terms of returns. The availability of renewable power is one of the most important factors, considering the entire value
chain of green hydrogen. We have years of experience in the solar, wind and hydropower segments. This, along with pumped hydro
storage projects, will give us access to RTC power, which can be used for green hydrogen projects. This is where the choice of electrolyser
comes up. The two major ones today are alkaline and PEM. Since we have RTC power, we do not necessarily require the variation
capability of a PEM electrolyser, so we have opted for alkaline, which is a more mature and proven technology. Further, indigenisation
is easier in alkaline than PEM, owing to the larger requirement of various rare earth metals in the latter, when compared to the former.
• We have formed a joint venture with the Belgian company John Cockerill, one of the leading global manufacturers of electrolysers. We
plan to set up a 2 GW alkaline electrolyser manufacturing unit. In the current geopolitics, green ammonia has emerged as the most
favourable end product in terms of its commercial viability and that is why we have chosen green ammonia for our first project. We also
have plans to set up a 1 million tonne green ammonia project on the east coast of the country, primarily for export.”

99
List of Acronyms

100
List of Acronyms
List of Acronyms
Acronym Expansion
AEM Anion Exchange Membrane
AUD Australian dollar
BEV Battery Electric Vehicle
BIS Bureau of Indian Standards
BPCL Bharat Petroleum Corporation Limited
CAGR Compound Annual Growth Rate
Capex Capital expenditure
CCS Carbon Capture and Storage
CEEW Council on Energy, Environment and Water
CFCT Centre for Fuel Cell Technology
CHP combined heat and power
CSIR Council of Scientific and Industrial Research
DKK Danish krone
DRI Direct Reduced Iron
DSIR Department of Scientific and Industrial Research
DST Department of Science and Technology
DTC Delhi Transport Corporation
EU European Union
EV Electric Vehicle
FAME Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles scheme
FC fuel cell
FCEV Fuel Cell Electric Vehicle
GST Goods and services tax
GW Giga-watt

101
List of Acronyms
List of Acronyms
Acronym Expansion
H-CNG Hydrogen-compressed Natural Gas
HDV heavy duty vehicles
HFC Hydrogen and Fuel Cell
HPCL Hindustan Petroleum Corporation Limited
HRS hydrogen refueling station
IC Internal combustion
IEA International Energy Agency
IOCL Indian Oil Corporation Limited
IRENA International Renewable Energy Agency
ISO International Organization for Standards
ISRO Indian Space Research Organization
kg Kilo-gram
kW Kilo watt
LOHC Liquid Organic Hydrogen Carriers
LUV light utility vehicles
mmBtu Metric Million British Thermal Unit
MNRE Ministry of New and Renewable Energy
MOF Metal Organic Framework
MoU Memorandom of Understanding
MMT million metric tonnes
MW Mega-watt
NISE National Institute of Solar Energy
NMITLI New Millennium Indian Technology Leadership Initiative
NMRL Naval Materials Research Laboratory

102
List of Acronyms
List of Acronyms
Acronym Expansion
PCEC Proton Ceremic Electrochemical Cell
PEC Photoelectrochemical Cell
PEM Proton Exchange Membrane
R&D Research and Development
RPO Renewable Purchase Obligations
SMR Steam Methan Reformation
SMR Steam methane reformation
SOE Solid Oxide Electrolyser
TAD Thermally accelerated anaerobic digestion
TERI The Energy and Resources Institute
TWh Terawatt hour
UN-ECE United Nations Economic Commission for Europe
VSSC Vikram Sarabhai Space Centre

103
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Information provided in this document should not be reproduced, published, re-sold or

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

1 Market Size and Growth Drivers 7

2 Policy and Regulatory Developments and Outlook 18

4 Projects and Case Studies 47

6 Cost of Production and Investments 73

7 Future Outlook and Projections (Till 2070) 83

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Summary and Key Insights

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Summary and Key Insights

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Summary and Key Insights

Major Players, Projects, and Case Studies

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

1. Market Size and Growth Drivers

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Hydrogen Demand and Supply Outlook

Domestic green hydrogen consumption in 2030 estimated by NITI Aayog

Mandates and VGF

Refinery Fertilizer Gas Blending HDV Steel Methanol

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Hydrogen Demand and Supply Outlook

Mandates and VGF

Fertilizer Steel Methanol Export Carriers

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Fertiliser Refineries Domestic hydrogen consumption 6.0

Hydrogen consumption in imported ammonia 0.5

Future growth potential

Source: MEC; ADB; TERI

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

While renewable energy is quite affordable,

As solar is the most rapidly growing green source in

Source: India Infrastructure Research

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Key Areas of Application

Source: India Infrastructure Research

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Key Areas of Application

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Potential Business Models

Current business models in green hydrogen production

Value Technology Supply

Specialist/ Pure Pure Pure Pure O&M Service Provider;

Source: Roland Berger

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Potential Business Models

Power-to-X (PtX) Applications:

Storage and Transportation:

Source: Roland Berger; India Infrastructure Research

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

Key Growth Drivers

Source: India Infrastructure Research

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com

2. Policy and Regulatory Developments and

© India Infrastructure Research | June 2023 | www.indiainfrastructure.com