India's Green Hydrogen Drive: ?45,000-Crore Investment and 15,000 MW Electrolyser Expansion by 2026

02 Sep 2024

India's bold initiative to set up a colossal 15,000 MW electrolyser manufacturing capacity for green hydrogen production is projected to need an investment ranging from ? 30,000 to ? 45,000 crore, according to senior officials leading the effort. This significant financial outlay highlights the magnitude of India’s ambitions under the National Green Hydrogen Mission. Additionally, the government has allocated ? 12,500 crore in incentives to aid in this capacity expansion over the coming five years.

The SIGHT (Strategic Interventions for Green Hydrogen Transition) program, central to India's green hydrogen initiatives, has achieved considerable milestones. Following a rigorous and transparent tendering process, approximately 15 companies have been chosen to develop a combined 15,000 MW capacity. These companies are currently focused on securing land, forming technology partnerships, and building the required infrastructure.

A senior official stated: "Approximately 15 companies have been selected through a transparent and fair tender process to establish these plants. They are currently working on securing land, forming technology partnerships, and fulfilling other requirements. Many of these companies have also already installed the essential machinery."

Production Deadlines and Initial Adopters

The government has established a target for these plants to start production by mid-2026, but some are anticipated to begin operating as soon as mid-2025. Ohmium, a prominent industry player, has already started its operations at a plant with a capacity of 2,000 MW.

"We've set a deadline of mid-2026 for them, but we're aiming to have several plants operational by mid-2025. Ohmium has already begun construction on their facility, which will have a capacity of 2,000 MW," the official noted.

This initial progress reflects a broader trend of rapid expansion in India’s green hydrogen industry, as numerous companies are eager to establish larger facilities than originally intended, motivated by the sector's immense potential.