February 12, 2025

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Electrolyser Manufacturing: What is It and Why Is It Important for India’s Green Hydrogen Evolution?

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As the world seeks sustainable energy solutions, India is positioning itself at the forefront of the green hydrogen revolution. But what makes electrolysers the backbone of this transformation?

Electrolysers are crucial devices that use electrical energy to split water into hydrogen and oxygen and this process is known as electrolysis.

When powered by renewable energy sources like solar or wind, this process results in green hydrogen production, a clean and sustainable fuel that holds the key to decarbonizing industries such as steel, chemicals, and transportation.

With ambitious targets to produce 5 million tonnes per annum (MTPA) of green hydrogen by 2030, India is prioritising electrolyser manufacturing to ensure a sustainable energy future.

Today, we will tell you all about electrolyser manufacturing and surrounding topics for you.

Why Electrolysers are Crucial for India’s Green Hydrogen Evolution

Electrolysers are central to India’s plan to become a green hydrogen leader, much like the role of battery energy storage in the renewable energy shift.

In his keynote address at the International Conference on Green Hydrogen, Prime Minister Narendra Modi emphasised India’s ambition to become a global hub for the production, utilisation, and export of green hydrogen.

Achieving this will be impossible without a robust ecosystem for electrolyser manufacturing.

India’s National Green Hydrogen Mission, launched in 2023, has set an ambitious target of mitigating 50 million tonnes of carbon dioxide emissions by 2030.

Electrolysers are integral to this goal as they play a major role in green hydrogen production, contributing up to 50% of the production cost.

Private renewable energy players in India such as AMPIN Energy Transition are investing in advanced R&D to help the country bring down the overall cost of green hydrogen, making it more competitive globally.

Challenges in Reducing Manufacturing Costs

Despite the opportunities, manufacturing electrolysers in India comes with several challenges. These can be broadly divided into three categories:

  1. Material Costs: Essential materials like platinum, iridium, and specific membranes used in electrolysers are mostly imported, which adds to the overall cost. Developing local alternatives or securing stable import channels is critical.
  2. Manufacturing Costs: While some components like power converters and heat exchangers are already produced in India, other critical parts such as membranes are not yet indigenised. Boosting domestic production capabilities will require technology transfers, skilled labour, and capital investment.
  3. Balance of Plant (BoP) Costs: The BoP components, which include accessories like power systems and control mechanisms, are largely manufactured in India. However, integrating them efficiently into electrolyser systems will require innovation and process optimisation.

Recognising these challenges, the Indian government has introduced a Production Linked Incentive (PLI) scheme for electrolyser manufacturing.

The National Green Hydrogen Mission has allocated Rs 4,440 crore under its Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme to boost India’s production capacity of green hydrogen and electrolysers. The goal is to increase India’s electrolyser manufacturing capacity from 1.5 GW to 3 GW.

AMPIN Energy Transition: Driving R&D for a Sustainable Hydrogen Future

With the National Green Hydrogen Mission and strong government support, India is well on its way to building a robust ecosystem for green hydrogen production. However, the role of industry leaders in accelerating this transition is equally critical.

AMPIN Energy Transition, a leading independent power producer, is at the forefront of India’s green hydrogen revolution.

Through its commitment to innovation, it is conducting extensive research and development (R&D) to make the technology viable and accessible for industries across the board. By investing in electrolyser technology and driving cost reductions through indigenization, it is playing a pivotal role in helping India reduce its dependence on imports and meet its ambitious hydrogen production goals.

The strategic approach and dedication of AMPIN Energy Transition to advancing clean energy solutions will help shape the future of green hydrogen, making it an integral part of India’s journey toward a sustainable, carbon-free future.

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