Setting up a green hydrogen manufacturing plant in India involves multiple steps, including regulatory approvals, technology selection, financing, and infrastructure setup. Here’s a step-by-step guide:
1. Understand Green Hydrogen Production
Green hydrogen is produced via electrolysis of water (H₂O) using renewable energy (solar, wind, hydro). The key processes are:
- Electrolysis (ALK, PEM, SOEC technologies)
- Renewable power sourcing (solar/wind farms)
- Compression/storage & distribution
2. Business & Feasibility Planning
- Market Demand Analysis: Identify industries needing green H₂ (refineries, fertilizers, steel, transport).
- Location Selection: Prioritize regions with:
- High renewable energy potential (Rajasthan, Gujarat, Tamil Nadu, Karnataka).
- Proximity to ports/industrial clusters for offtake.
- Technology Partner: Collaborate with electrolyzer manufacturers (e.g., Ohmium, Plug Power, Siemens, L&T, or international players).
- Financial Feasibility: Estimate CAPEX (electrolyzers, solar/wind farms, storage) and OPEX.
3. Regulatory Approvals & Incentives
Mandatory Approvals:
- Environmental Clearance (MoEFCC) – If plant capacity > 50,000 TPA.
- Factory License (State Govt. – Department of Industries).
- Electricity & Water Permits (State DISCOM & Water Authority).
- Explosives License (for H₂ storage under Petroleum & Explosives Safety Org – PESO).
- Pollution Control Board (PCB) NOC (for emissions/wastewater).
Government Incentives:
- National Green Hydrogen Mission (2023) – ₹19,744 Cr subsidies for electrolyzer manufacturing & H₂ production.
- PLI Scheme – For electrolyzer manufacturing.
- State Policies – Some states offer land subsidies, tax waivers (e.g., Gujarat, Rajasthan).
- RPO & Carbon Credits – Benefits under Renewable Purchase Obligation (RPO).
4. Land & Infrastructure Setup
- Land Requirement: ~10-50 acres (depends on electrolyzer & renewable plant size).
- Renewable Energy Source:
- On-site solar/wind farm (preferred for cost efficiency).
- Open access renewable power (if own RE plant is not feasible).
- Water Supply: 9-10 liters per kg of H₂ (desalination/RO may be needed).
- Grid Connectivity: For balancing power needs.
5. Procurement & Installation
- Electrolyzer (ALK/PEM/SOEC) – 1 MW electrolyzer produces ~450 kg H₂/day.
- Compressors & Storage (High-pressure tanks/cryogenic storage).
- Balance of Plant (BoP): Piping, transformers, cooling systems.
- Safety Systems: Leak detection, flame arrestors, emergency shutdown.
6. Financing & Partnerships
- Debt Financing: SBI, PNB, IREDA offer green energy loans.
- Equity Partners: NIIF, global green funds.
- Offtake Agreements: Sign MoUs with refineries (BPCL, IOCL), ammonia/steel plants.
7. Operations & Commercialization
- Testing & Commissioning: Ensure safety compliance.
- Certification: Get “Green Hydrogen” certification (BEE or MNRE-approved agencies).
- Logistics: Transport via cylinders/trucks or pipelines (if large-scale).
Key Challenges & Mitigation
| Challenge | Solution |
|---|---|
| High CAPEX | Utilize govt. subsidies & low-cost loans |
| Intermittent RE supply | Hybrid (solar + wind + storage) |
| Low offtake demand | Partner with oil/fertilizer/steel industries |
Estimated Project Cost
| Component | Cost (₹ Cr) |
|---|---|
| 10 MW Electrolyzer | ~200-250 |
| 50 MW Solar Plant | ~200-250 |
| Storage & BoP | ~50-100 |
| Land & Infrastructure | ~20-50 |
| Total (10 MW Plant) | ~500-700 Cr |
Next Steps
- Apply for MNRE/State Govt. incentives.
- Finalize land & power purchase agreements (PPA).
- Select EPC contractor (e.g., Ohmium, Larsen & Toubro, ACME).
- Secure offtake agreements with industrial buyers.
India is aggressively pushing green hydrogen, making this a high-growth sector. Would you like help with a detailed DPR (Detailed Project Report) or funding options?
