India powers up green hydrogen: 15,000 MW electrolysers with ₹45,000 crore boost by 2026

• Published 3 months ago
• By SuperAdmin

The SIGHT (Strategic Interventions for Green Hydrogen Transition) programme, which forms the backbone of India’s Green Hydrogen efforts, is already making significant progress. Through a fair and transparent tendering process, around 15 companies have been selected to develop this 15,000 MW capacity.

New Delhi: India’s ambitious plans to establish a massive 15,000 MW electrolyser manufacturing capacity for Green Hydrogen production will require an estimated investment of ₹30,000-45,000 crore, according to senior officials spearheading the initiative.

This substantial financial commitment underscores the scale of India’s vision under the National Green Hydrogen Mission, where the government has also set aside ₹12,500 crore in incentives to support this capacity expansion over the next five years.

The SIGHT (Strategic Interventions for Green Hydrogen Transition) programme, which forms the backbone of India’s Green Hydrogen efforts, is already making significant progress. Through a fair and transparent tendering process, around 15 companies have been selected to develop this 15,000 MW capacity. These companies are now in the process of acquiring land, establishing technology partnerships, and setting up the necessary infrastructure.

“The companies which will set up these plants have been identified through a fair and transparent tendering process. There are around 15-odd companies. Now they are in the process of identifying the land and entering into technology tie-ups etc that they would require. Many of them have also set up the basic machinery required,” said a senior official.

Production timelines and early movers

The government has set a deadline of mid-2026 for these plants to begin production, though some are expected to come online as early as mid-2025. Ohmium, a leading player, has already commenced operations at its plant with a capacity of 2,000 MW. “We have given them time till mid of 2026 but we expect many plants to come up in mid-2025. Ohmium has already started its plant and their capacity is 2,000 MW,” the official noted.

This early progress signals a broader trend of accelerated development in India’s Green Hydrogen sector, with many companies keen to set up larger plants than initially planned, driven by the sector's vast potential.

Green hydrogen production and supply

India’s approach to Green Hydrogen production under the SIGHT programme is two-pronged. The first mode focuses on producing Green Hydrogen for both domestic consumption and exports. In this category, the government has awarded contracts for approximately 412,000 tonnes of Green Hydrogen, with another tender for 4.5 lakh tonnes currently in the pipeline, reflecting growing demand from companies.

The second mode is centered on domestic consumption, particularly in sectors like refineries, which are major hydrogen consumers. “We have allocated 2 lakh tonnes for refineries out of the incentive programme,” the official said. This allocation ensures localized Green Hydrogen production, addressing transport challenges. Furthermore, 

significant tender has been launched for 7 lakh tonnes of Green Ammonia, making it the largest Green Hydrogen/Ammonia tender globally. “This is the largest bid for Green Hydrogen/Ammonia in the world and this tender is currently open,” he added.

Addressing cost and price disparities

One of the key challenges in the Green Hydrogen sector is the price disparity between grey and green hydrogen. However, India’s robust renewable energy market and integrated power grid are expected to make it one of the world’s cheapest producers of Green Hydrogen. Drawing parallels with the rapid decline in solar power costs, the official expressed optimism about a similar trend for Green Hydrogen. “In the case of Green Hydrogen too, we believe we will be one of the cheapest producers in the world because our RE market is very strong,” the official said.

State governments are also expected to offer additional incentives, such as ISTS waivers and SEZ incentives, which will further reduce costs. Moreover, the development of a carbon market and trading mechanism is anticipated to lower emissions from 11 kg of CO2 per kg of hydrogen to 2 kg of CO2 per kg of Green Hydrogen, generating valuable carbon credits.

Future of green hydrogen in mobility

While the use of Green Hydrogen in electric mobility is currently a smaller component compared to sectors like refineries and fertilisers, India is making strides through pilot projects. “Mobility will be a smaller component as compared to refineries or fertiliser etc. So, we are currently doing pilots,” the official said. These efforts will contribute to the gradual adoption of Green Hydrogen in the mobility sector, supporting the broader transition to a sustainable energy economy.

India’s proactive approach under the SIGHT programme positions the country as a global leader in the Green Hydrogen revolution. With substantial investments, large-scale capacity building, and a strategic focus on both domestic and international markets, India is poised to play a pivotal role in the future of sustainable energy.