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.
