Complete Guide to Setting Up a Green Hydrogen Plant in India.

Table of Contents

Complete guide on setup of green hydrogen plant in India – land, investment, approvals, and govt incentives.

Introduction to Green Hydrogen in India

Green hydrogen (produced via electrolysis using renewable energy) is a key focus area under India’s National Green Hydrogen Mission with a ₹19,744 crore outlay. The government aims for 5 million tonnes/year production by 2030, making India a global green hydrogen hub.

Key Specifications & Requirements for Green Hydrogen Plant

1. Technology Selection

Electrolysis Process Types:
- Alkaline Electrolyzers (Mature tech, lower cost)
- PEM (Proton Exchange Membrane) (More efficient, compact)
- SOEC (Solid Oxide Electrolyzers) (High-temp, emerging tech)

2. Renewable Energy Source

Must be powered by solar/wind/hydropower (no grid power allowed for “green” certification).
Typical Requirement: ~50-55 kWh of renewable electricity to produce 1 kg of hydrogen.

3. Land Requirements

Plant Capacity	Land Needed	Additional Notes
1 Ton Per Day (TPD)	5-10 acres	Includes electrolyzers, storage, solar/wind farm
10 TPD	30-50 acres	Larger storage & compression facilities
100 TPD	200-300 acres	Full-scale industrial plant

4. Water Requirement

~9-10 liters of demineralized water needed per kg of H₂.
RO/desalination plant may be needed if water quality is poor.

5. Investment Cost Breakdown

Component	Estimated Cost (₹ Cr)
Electrolyzers (1 MW)	5-7 Cr
Solar/Wind Power Plant	4-5 Cr/MW
Hydrogen Storage (Compressed)	2-3 Cr
Purification & Compression	3-4 Cr
Balance of Plant (Piping, Safety)	2-3 Cr
Total for 1 TPD Plant	~50-70 Cr
Total for 10 TPD Plant	~300-400 Cr

6. Government Subsidies & Incentives

PLI Scheme: ₹13,050 Cr allocated for electrolyzer manufacturing.
Renewable Energy Bundling: Waiver on ISTS charges for 25 years.
State Incentives: Additional subsidies in Gujarat, Rajasthan, Tamil Nadu.

Step-by-Step Setup Process

1. Site Selection

Proximity to Renewable Energy: Solar/wind-rich states (Rajasthan, Gujarat, Karnataka).
Port Access: If exporting ammonia (e.g., Kandla, Mundra).
Water Availability: Near rivers or with desalination options.

2. Regulatory Approvals

MNRE (Ministry of New & Renewable Energy) clearance.
CEA (Central Electricity Authority) for power integration.
PCB (Pollution Control Board) NOC for water discharge.

3. Equipment Procurement

Electrolyzers: Import from Nel Hydrogen, Siemens, or domestic (Ohmium, Plug Power).
Solar/Wind Turbines: Adani Green, Suzlon, etc.
Storage Tanks: Linde, Air Products.

4. Construction & Commissioning

Timeline: 18-24 months for a 10 TPD plant.
Safety Standards: Follow ISO 22734, NFPA 2.

5. Offtake Agreements

Potential Buyers: Refineries (BPCL, IOCL), fertilizer plants, steel mills.
Export Market: Green ammonia to Japan, Germany.

Challenges & Solutions

Challenge	Solution
High Electrolyzer Cost	Avail PLI subsidy, local manufacturing
Intermittent RE Supply	Hybrid (solar + wind + storage)
Lack of H₂ Pipeline	Start with compressed H₂ trucks

Future Outlook

Cost Reduction: Electrolyzer prices may drop 40% by 2030.
Global Demand: EU & Japan seeking imports; India can be key supplier.