India has set its sights firmly on becoming a global green hydrogen powerhouse. With National Green Hydrogen Mission, India has committed to producing 5 million tonnes of green hydrogen annually by 2030. This push is expected to help avoid 50 million tonnes of annual greenhouse gas emissions and reduce fossil fuel imports worth nearly ₹1 lakh crore. While ambitious, the targets are necessary for India’s energy security and decarbonization goals.
At the heart of this green hydrogen revolution lies one crucial piece of equipment: the electrolyzer. It’s not just a technical tool; it’s an economic lever. Electrolyzers account for 30–50% of the cost of green hydrogen production. The ability to manufacture them domestically will determine whether India remains an importer of technology or is able to become a global exporter of both hydrogen and the systems that produce it.
So far, India’s electrolyzer manufacturing capacity is just 40 megawatts. A CEEW (Council on Energy Environment and Water) study says that India might need 20 GW of electrolyzer capacity by 2030. However, by 2050, global demand could touch 3,300 GW, presenting India with a rare opportunity to build an entirely new industrial ecosystem from the ground up.
But what does it mean to indigenize electrolyzer manufacturing? And what will it take?
Types of Electrolyzers
Broadly, there are three main technologies involved in electrolyzers: Alkaline electrolyzers, Proton Exchange Membrane (PEM) electrolyzers and Solid Oxide Electrolyzers (SOE). Each comes with its own engineering requirements, use cases and supply chain dependencies.
Alkaline electrolyzers are the oldest and most established, that use a liquid alkaline solution like potassium hydroxide as the electrolyte. These systems are relatively low-cost, have long operating lives and use easily available materials—making them the easiest to localize. According to a CEEW study, while up to 80% of their components can be sourced or manufactured domestically, if the right investments are made, they will still depend on specific imported materials such as Zirfon membranes and nickel-based coatings.
While PEM electrolyzers are more compact and can handle fluctuating loads, making them ideal for integration with intermittent renewable energy sources like solar and wind, they have significant material challenges. PEM systems require critical minerals such as platinum and iridium for their catalysts — scarce resources globally and not mined in India.
Solid Oxide Electrolyzers that operate at very high temperatures and offer high efficiencies are still largely in the research and pilot stage, and their commercial viability and long-term durability are yet to be proven.
Three-Pronged Strategy for Indigenization
To overcome these limitations, India must adopt a layered, pragmatic approach:
1. Start with Assembly and Subsystem Manufacturing
India can start by assembling electrolyzer systems domestically using imported materials and components. Subsystems such as balance-of-stack components — power electronics, heat exchangers, water treatment units, purification unit - gas separators, deoxo & dryer— constitute up to 60% of the total cost and are already being manufactured in other sectors like thermal power and chemical processing. This approach not only creates jobs and builds technical know-how but also generates economies of scale that bring down costs over time.
2. Invest in Critical Material Substitution
Long-term success will depend on reducing or eliminating the need for critical imported minerals. India’s R&D ecosystem, comprising of premier institutions like IITs, CSIR labs and new-age startups, must be encouraged to develop non-platinum group metal (non-PGM) catalysts, alternative membranes and new cell designs. For example, nickel-iron and cobalt-based alternatives to iridium have shown promise. Similarly, Indian firms can look into hydrocarbon-based membranes that may serve as potential substitutes for Nafion. Recently, a team of Indian scientists has created a new, cost-effective catalyst that could help produce clean hydrogen fuel using just mechanical energy. This breakthrough could revolutionize the way we generate hydrogen, offering a more sustainable and eco-friendly solution for the future of energy.
3. Create a Reliable Raw Material Supply Chain
Even if we must import ores or base minerals, processing them domestically would add value and build resilience. India can procure Nickel, titanium, zirconium etc. from countries with whom it has stable trade relationships and process them locally to create high-purity materials for electrolyzer components. The government should consider strategic reserves or long-term supply agreements for these materials, just as how China has secured lithium for its battery sector.
Driving Down Costs and Improving Efficiency
A recent CareEdge Ratings report highlights the need to reduce electrolyzer costs by 35–40% and improve efficiency by 12–14% to achieve green hydrogen production at a competitive rate of $2.1/kg. That’s the price point at which green hydrogen can compete with grey hydrogen derived from natural gas. Cost reductions can be achieved through multiple pathways: increasing current density, optimizing cell design to reduce material use, localizing high-volume components and improving manufacturing techniques like roll-to-roll coating or additive manufacturing. Efficiency, meanwhile, depends on minimizing resistive losses in the system, improving membrane conductivity and better heat integration. Providing the right infrastructure and support, India’s engineering ecosystem can play a transformative role in advancing innovation in these areas. India should also start placing early bets on some of the most promising emerging green hydrogen technologies that could shape the future of the sector. Innovations like Anion Exchange Membrane (AEM) electrolyzers offer the best of both PEM and alkaline systems, combining efficiency with lower material costs, thanks to the use of non-precious metal catalysts. Capillary-fed electrolyzers, which rely on a thin film of water instead of a bulk liquid electrolyte, can reduce system complexity and drive down costs. Meanwhile, Electrochemical-Thermally Activated Chemical (E-TAC) systems present a safer and potentially more efficient approach by separating the hydrogen and oxygen production steps and doing away with membranes altogether. By supporting these technologies early through pilot projects and government-funded R&D, India could position itself at the forefront of the next wave of green hydrogen innovation.
All of this will require policy support, and the National Green Hydrogen Mission has made a good start. The ₹17,490 crore outlay for strategic interventions, demand creation and R&D is timely. But more is needed.
A clear roadmap for electrolyzer manufacturing, including domestic content requirements for government-funded hydrogen projects, PLI schemes for core components and fast-tracked environmental clearances for manufacturing facilities will be essential. India also needs a coordinated approach between various ministries, such as renewable energy, heavy industries, mining and science & technology, to ensure that funding, regulation and research move in tandem.
The transition to green hydrogen is not just about decarbonizing our economy; it's about building a future-facing industrial base. The India Hydrogen Alliance (IHA) has indicated that India might risk missing its 2030 Green Hydrogen target, if not mandated in industries such as refineries and fertilizer manufacturers. Though the country’s current electrolyzer capacity is just 40 megawatts in 2025, India can still achieve its desired target through mandates and stimulating demand across existing industrial projects, including refineries and ammonia plants. The race for green hydrogen leadership is not just about who builds the biggest plants, but also about maneuvering in the right direction and through investment, innovation and indigenization.
Citations:
·https://www.ceew.in/publications/how-can-india-indigenise-hydrogen-electrolyser-manufacturing
·https://renewablewatch.in/2024/10/18/hydrogen-electrolyser-manufacturing-in-india-report/
·https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2023/07/2023072664.pdf
Green Hydrogen Sahi Hai
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