Details of $2.1 Billion Electrolyser Production Plan Released

Vidhathri Matety

India’s initiative to invest $2.1 billion in local electrolyser manufacturing and green hydrogen production has garnered significant attention from major corporations.

The Strategic Interventions for Green Hydrogen Transition (SIGHT) program marks a crucial beginning, yet there’s potential to refine it further to attract start-ups and international players.

India’s bold move to invest $2.1 billion in local electrolyser manufacturing and green hydrogen production has garnered significant attention from major players in the private sector, signaling a promising step towards establishing itself as a global green hydrogen powerhouse.

A joint report released by the Institute for Energy Economics and Financial Analysis (IEEFA) and JMK Research & Analytics indicates that while the Strategic Interventions for Green Hydrogen Transition (SIGHT) program is off to a solid start, there’s room for improvement to engage start-ups and international entities.

Key takeaways from the report include:

• Projections that the levelled cost of green hydrogen (LCOH) in India could decrease by up to 40%, reaching ₹260-310/kg (US$3-3.75/kg) with the aid of government incentives and policy support.
• Electrolyser manufacturers are expected to see a 7-10% reduction in total system costs within the initial five years, with an average annual realisable base incentive of ₹2,960/kilowatt (kW) (US$36/kW).

Large Indian corporations have already demonstrated keen interest in the initiative, with bids surpassing the capacity offered under the SIGHT program’s incentives. Notable participants include Reliance Electrolyser Manufacturing, John Cockerill Green Hydrogen Solutions, and Jindal India, among others.

Despite this enthusiasm, challenges such as infrastructure limitations, regulatory ambiguities, and the absence of clear mandates for green hydrogen usage in domestic end-use industries persist. The report underscores the need for government intervention to establish standards, policies, and regulations, along with streamlining demand creation to propel the domestic green hydrogen market forward.

The report also calls for enhancements to the green hydrogen definition framework, strengthening the regulatory framework, greater funding support for research & development, and the adoption of global standards for India’s hydrogen ecosystem. “India’s ambitious push towards green hydrogen presents a significant opportunity to revolutionize various sectors, including agriculture, transport, and manufacturing,” remarked Vibhuti Garg, Director – South Asia, IEEFA.

“However, refining the SIGHT program to attract start-ups and global players is essential for its long-term viability and success.”

The joint program underscores the importance of leveraging India’s advantage in low-cost renewable electricity to achieve competitive domestic electrolyser manufacturing and reduce green hydrogen production costs. With the right enhancements and support, India stands poised to emerge as a key player in the global green hydrogen market by the end of 2027.