Strategic Insights Report: Green Hydrogen
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Energy Alternatives India (EAI)
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INDEX
- Executive Summary
- Key Investment Drivers
- Market Opportunity
- Technology & Value Chain Overview
- Cost & Revenue Model
- Policy & Incentive Landscape
- Investments Made
- Risks & Mitigation
- Call to Action
- Why Partner with Us
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EXECUTIVE SUMMARY
“With falling RE and electrolyzer costs, Green Hydrogen is not just a climate solution — it’s a margin-positive, policy-backed asset class built for long-term value”
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KEY DRIVERS
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MARKET OPPORTUNITY
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GREEN H2 : TECHNOLOGY OVERVIEW
Green Hydrogen is produced via electrolysis of water, using renewable electricity. The key electrolysis technologies involved are:
| Type | Status in India (2024) | Pros | Cons |
|---|---|---|---|
| Alkaline | Commercial, dominant | Low cost, mature, long life | Less responsive to load fluctuations |
| PEM (Proton Exchange Membrane) | Emerging | Compact, better load response | Higher CAPEX, uses platinum-group metals |
| SOEC (Solid Oxide) | R&D phase | High efficiency, works with heat (HTSE) | High temp operation, less commercial |
| AEM (Anion Exchange Membrane) | Early-stage | Hybrid of PEM + Alkaline benefits | Under development |
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VALUE CHAIN OVERVIEW
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COST PARAMETERS
| Technology | CapEx (₹/kW) | Efficiency (% LHV) | Electricity Cost (₹/kWh) | Water Req. (L/kg H₂) | Levelized Cost of Hydrogen (LCOH) |
|---|---|---|---|---|---|
| Alkaline Electrolysis | ₹30,000 – ₹40,000 | 65–70% | ₹2.0 – ₹2.5 | ~9 – 10 | ₹55 – ₹65/kg H₂ |
| PEM Electrolysis | ₹40,000 – ₹55,000 | 60–65% | ₹2.0 – ₹2.5 | ~9 – 10 | ₹60 – ₹70/kg H₂ |
| SOEC (Solid Oxide) | ₹60,000 – ₹80,000 | 75–80% (w/ heat) | ₹1.8 – ₹2.2 (co-gen/RE+HTSE) | ~6 – 7 | ₹50 – ₹60/kg H₂ (future potential) |
| AEM (Emerging) | ₹35,000 – ₹45,000 | ~65% (est.) | ₹2.0 – ₹2.5 | ~9 – 10 | ₹58 – ₹68/kg H₂ (demo scale only) |
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LCOH BREAKDOWN
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REVENUE MODEL
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REVENUE COMPOSITION CHART
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REVENUE POTENTIAL SNAPSHOT (ALKALINE 20 MW PLANT)
| Metric | Estimate (Year 1–2) |
|---|---|
| Annual H₂ Production | ~3,600 tons/year (~10 TPD plant) |
| H₂ Sales Revenue (@₹90/kg) | ₹32–34 Cr/year |
| Oxygen Sales Revenue | ₹1–1.5 Cr/year |
| Carbon Credit Benefit | ₹2–3 Cr/year |
| Govt. Production Incentives | ₹15–18 Cr/year (first 3 years only) |
| Total Revenue (with all streams) | ₹50–55 Cr/year |
POLICY & INCENTIVE LANDSCAPE-
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INVESTMENTS MADE
| Investor | Technology | Investment Size | Capacity | Location |
|---|---|---|---|---|
| Reliance Industries | Alkaline/PEM + RE Giga Plant | ₹75,000 Cr (~$10 Bn) | 3 GW solar; 1.5 GW electrolyzer | Jamnagar, Gujarat |
| Adani New Industries | Alkaline electrolyzers | ₹22,400 Cr (~$3 Bn) | 5 GW electrolyzer manufacturing | Gujarat (Khavda, Mundra) |
| GAIL India | PEM electrolyzer | ₹2,500 Cr (~$300 Mn) | 10 MW (4.3 TPD H₂) | Vijaipur, Madhya Pradesh (Media reports) |
| NTPC Limited | PEM electrolysis | ₹1,00,000 Cr (~$12 Bn) | Phase 1 – 400 MW; target 5 GW | Andhra Pradesh H₂ hub (Media reports) |
| NEOM–ACWA–Air Products | PEM electrolyzers + NH₃ | $8.4 Bn | 600 TPD H₂ → 1.2 MMT NH₃/year | NEOM, Saudi Arabia |
| ACWA–AP/NEOM JV (EPC) | Electrolyzers + ammonia plant | $5 Bn | 650 TPD H₂ → 1.2 MMT NH₃/year | NEOM industrial cluster |
| Juno Joule–Select Energy | Electrolysis + ammonia | ₹10,000 Cr (~$1.3 Bn) | 180 KTPD H₂ → 1 MMT NH₃/year | Andhra Pradesh, India (Global JV) |
| AREH (Aus) | Alkaline electrolysis | $10 Bn | 1.75 MMT H₂/year + 4 GW RE | Western Australia |
KEY CHALLENGES
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SOLUTIONS
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MOVING FORWARD
- Invest early in India’s green hydrogen infrastructure to capitalize on upcoming offtake mandates and subsidies
- Partner with industrial offtakers (steel, fertilizer, refining) to secure long-term revenue visibility
- Leverage export corridors by co-developing green ammonia terminals at strategic ports
- Fund electrolyzer manufacturing or component supply chains to benefit from PLI-linked returns
- Collaborate with state governments offering land, power, and tax incentives for hydrogen clusters
- Participate in the SIGHT scheme auctions to lock in premium green hydrogen production incentives
- Co-invest in desalination and RE-integrated hydrogen hubs to reduce LCOH and improve project IRR. Back pilot projects across mobility, shipping, and blending to establish early mover advantage in emerging use cases
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WHY PARTNER WITH EAI?
- Deep Domain Expertise – Founded in 2008 by IIT‑IIM professionals, EAI brings 15+ years of exclusive focus on renewables and cleantech, including solar, wind, bio‑energy, and emerging areas like Green Hydrogen.
- Deep Insights & Business Intelligence – With a track record of 200+ consulting engagements, including market potential assessments, techno‑economic feasibility, competitor analysis, policy evaluation, and pilot-to-commercial transition strategies .
- Strong Network & Trusted Reputation – Trusted by Fortune‑100 firms, global and Indian corporates, investors, banks, utilities, governments, and international organisations for strategy, research, and due diligence .
- End‑to‑End Project Support – From market entry and diversification strategies, regulatory navigation, incentive optimisation (PLI, VGF, ISTS waivers), to feasibility, JV scouting, EPC guidance, and project implementation .
- Cleantech Catalyst for Innovation – Beyond consulting, EAI nurtures startups via its ClimaFix platform, supports capacity building through its Climate Academy (Clidemy), and hosts industry‑leading events and publications .
- Focus on Green Hydrogen & Decarbonisation – With dedicated services and intelligence on Green Hydrogen, biofuels, sustainable mobility, energy efficiency, and digital‑for‑decarbonisation, EAI is uniquely positioned to guide your GH₂ journey .
Wish to have industry or market research support from specialists for climate & environment? Talk to EAI team – Call Muthu at +91-9952910083 or send a note to consult@eai.in
