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

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 CapacityLand NeededAdditional Notes
1 Ton Per Day (TPD)5-10 acresIncludes electrolyzers, storage, solar/wind farm
10 TPD30-50 acresLarger storage & compression facilities
100 TPD200-300 acresFull-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

ComponentEstimated Cost (₹ Cr)
Electrolyzers (1 MW)5-7 Cr
Solar/Wind Power Plant4-5 Cr/MW
Hydrogen Storage (Compressed)2-3 Cr
Purification & Compression3-4 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

ChallengeSolution
High Electrolyzer CostAvail PLI subsidy, local manufacturing
Intermittent RE SupplyHybrid (solar + wind + storage)
Lack of H₂ PipelineStart 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.

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