Driven by global demand, government incentives and technological progress, India is positioning itself as a key player in the green hydrogen space, not just as a user of green hydrogen, but also as an exporter and manufacturing hub. While the National Green Hydrogen Mission has provided an impetus to the sector, concerns persist around cost viability, low readiness of electrolyser supply chains and limited bankability of offtake agreements. Against this backdrop, at Renewable Watch’s 9th annual conference on “Green Hydrogen in India”, senior industry stakeholders discussed the status of their initiatives, perspectives on current policies, and the future roadmap. Edited excerpts…
Siddharth Gupta
L&T Electrolysers operates from Hazira, Surat, with a manufacturing facility focused on pressurised alkaline technology. Based on operational and market experience, alkaline has turned out to be the most mature technology. We indigenously manufactured our first electrolyser at this recently and are currently collecting operating data from an adjacent hydrogen plant.
The company has also invested heavily in research and development (R&D), as improvements in operations and maintenance efficiency depend on catalyst and coating innovations. The partnership with McPhy supports technology transfer, with localisation being a top priority. We believe that both indigenisation and performance optimisation will determine the future competitiveness of Indian original equipment manufacturers in the electrolyser market.
Going forward, India must focus on developing a vendor ecosystem. L&T Electrolysers has localised 80-85 per cent of the value chain. However, certain components such as membranes still need to be imported. Supply chain maturity is crucial for scaling. China, for example, has a vendor ecosystem that perfectly caters to the manufacturing output.
Looking ahead, both domestic and export demand can be seen as parallel growth drivers. In light of this, L&T Electrolysers is also assessing port-based facilities to serve export markets. For India to compete globally, convergence between green and grey hydrogen prices is essential, and a localised supply chain will play a pivotal role in achieving this goal.
Anand Kumar
Welspun New Energy is currently active across three green hydrogen verticals. First, large-scale export projects such as the upcoming 1.9 million metric tonnes per annum (MMTPA) ammonia facility in Kandla, Gujarat, with markets primarily in Europe. Second, plants catering to commercial and industrial demand, particularly from refineries and fertiliser units. Third, projects focused on internal consumption within Welspun’s industrial operations, such as steel and textiles. The company was awarded 20,000 metric tonnes per annum under the Solar Energy Corporation of India’s (SECI) Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme under Mode 1, Tranche I.
However, a key challenge we face as a developer is the non-uniformity of state policies. While some states offer power banking or open access benefits, others do not. For a developer, this raises input costs and disrupts integration. A developer might generate renewable energy in Rajasthan but set up ammonia production near demand centres like Gujarat, making integration and coordination difficult. These disparities not only raise the levellised cost of hydrogen (LCOH), but also make multi-state coordination complex.
Moreover, developers face fragmented regulatory processes, involving approvals from pollution control boards, the Petroleum and Explosive Safety Organisation and state discoms. A centralised portal and designated nodal officers will reduce delays and improve transparency. It is crucial to streamline this process to avoid delays and cost overruns in green hydrogen deployment.
Going forward, the company is adopting an optimistic but cautious approach. Green hydrogen mandates will accelerate uptake, but uniform and streamlined regulations are the real enablers of growth.
Samir Saxena
To expand into green molecules, a separate vertical for green hydrogen and its derivatives has been created, by ReNew. The company’s flagship project is a green ammonia facility in Paradip, Odisha, primarily export-oriented, with active engagement from offtakers in Europe and Southeast Asia.
Additionally, two methanol projects in Odisha are under way, aimed at decarbonising the marine industry and providing feedstock for sustainable aviation fuel. Odisha is an attractive state for green hydrogen uptake owing to its forward-looking policies and incentives. Projects in the US and Europe are also being explored, primarily to expand our global presence. We want to cater to both export and domestic demand.
That said, on the domestic side, demand is still fragmented. This is because developers are facing multiple hurdles that limit their ability to cater to the demand, or because the demand is not enough to be met by large-scale projects. Moreover, while SECI’s tenders for the fertiliser sector are promising, most offtake requests are for small volumes and short durations, undermining economies of scale. Long-term offtake agreements are essential to make projects financially viable and reduce dependence on subsidies. Hence, offtake is the most challenging and critical part of the whole ecosystem.
Mandates are critical for creating domestic demand. Pilot projects in hard-to-abate sectors such as cement and steel can also build confidence across the supply and demand chain. However, ecosystem development, including equipment manufacturing, skills and infrastructure, lags behind demand creation. Developing the domestic ecosystem is key not only for creating demand, but also for ensuring that the necessary technologies and capabilities are in place to support it.
Going forward, India is well-positioned to lead in exports due to its unified grid and rapidly growing renewable capacity. However, exporting green ammonia or hydrogen also comes with last-mile challenges such as reconversion technologies at the receiving end, the need for hydrogen pipelines and compatibility issues. These barriers limit the efficiency of the value chain.
B. N. Singh
Waaree Energies received approval under the production-linked incentive (PLI) scheme Tranche II for 300 MW of annual electrolyser capacity. A manufacturing facility is currently under development and is expected to be operational within 12-18 months. Alkaline technology was selected for the electrolysers due to its proven performance and ease of localisation. At least 90 per cent of our components will be sourced from India. Only membranes will be imported from Japan or South Korea, since India currently lacks the capacity to manufacture them. The PLI scheme’s focus on localisation aligns with Waaree’s long-term vision.
That said, manufacturing alone is not sufficient. Technology innovation must also be indigenised. Looking ahead, we advocate for expanded R&D funding and innvation-focused incentives under future PLI tranches to complement scaling efforts.
Ajay Vishwakarma
The ACME Group was among the early entrants in the green hydrogen and ammonia market, starting with a pilot-scale ammonia facility in India. The group also has a 0.9 MMTPAgreen ammonia plant in the pipeline in Dukum, Oman, which is 35 per cent complete and targeted for commissioning in 2027. Additionally, a 1.2 MMTPA plant is under development in Gopalpur, Odisha, in partnership with IHI Corporation, with support being sought from the Japanese government. A third site is being explored in Tuticorin, Tamil Nadu, which has been designated as a hydrogen hub by the government. The group is also exploring the green methanol market. The progress in this market depends on clarity around commercial offtake. Currently, most projects are export-oriented, driven early opportunities overseas. Developers are facing hurdles while exporting to other countries. While a export framework is in place, there are stringent standards prohibiting exports to European markets. For developers, transmission is another bottleneck as infrastructure spans multiple regions.
The government is trying to create domestic demand, especially through tenders floated by SECI and refinery companies such as Indian Oil Corporation Limited and Bharat Petroleum Corporation Limited. However, plant economics depend on large, steady offtake. For instance, to justify a large-scale ammonia plant, demand must be consolidated. Scaling down the project pushes costs up, undermining its viability. While government incentives under the SIGHT scheme have helped early movers, the domestic market still needs to scale up substantially to support large plants.
Overall, India’s long-term vision to become a net exporter of hydrogen is commendable. However, an integrated approach, across the centre and states, along with the development of skilled human capital, is crucial for the faster and seamless development of the green hydrogen ecosystem.
