In the global shift toward decarbonisation, green hydrogen has transitioned from a futuristic ideal to a central pillar of clean energy strategy. At the heart of this transformation lie electrolysers, the high-tech devices that use renewable electricity to split water into hydrogen and oxygen.

Europe, an early technology leader, is struggling with high costs, supply-chain constraints and slow project execution, leaving many deployments heavily subsidy-dependent despite continued support through innovation funds and hydrogen bank mechanisms. 

The United States has reshaped the market through the Inflation Reduction Act, which has accelerated electrolyser demand and factory expansion by guaranteeing attractive hydrogen economics, while also inflating global cost expectations. 

China dominates electrolyser manufacturing volumes, particularly in alkaline systems, leveraging scale, deep supply chains and aggressive pricing to export low-cost units worldwide, even as concerns persist around standards, durability and strategic dependence. 

In contrast, Japan and South Korea are prioritising overseas investments and long-term offtake agreements, positioning themselves as anchor demand centres rather than manufacturing leaders.

Within this global context, India’s electrolyser push sits at a crossroads. It lacks the subsidy intensity of the US and the manufacturing dominance of China, but it offers a compelling combination of low-cost renewable power, growing domestic demand and policy-driven market creation. The success of India’s electrolyser ecosystem will depend on whether it can rapidly scale manufacturing, localise critical components, improve efficiency and reliability, and compete globally on cost without sacrificing quality, before global supply chains and standards become locked in elsewhere.

Industry Gears Up 

Indian engineering majors, energy conglomerates, global technology partners and a new generation of clean-tech firms are all stepping up investments, manufacturing and technology development, positioning electrolysers at the centre of the country’s hydrogen transition.

Larsen & Toubro (L&T) marked a significant milestone by commissioning its first indigenously manufactured electrolyser at the Hazira green hydrogen plant in Gujarat. This 1 MW pressurised alkaline electrolyser, developed in collaboration with French partner McPhy Energy, is capable of producing hydrogen at scale appropriate for industrial offtake, and the project lays a foundation for L&T’s plans to expand into gigascale manufacturing facilities to meet surging domestic demand. At Deendayal Port Authority (DPA) Kandla, indigenous electrolysers manufactured by L&T have been flagged off for a green hydrogen plant, marking a milestone in port-based hydrogen infrastructure and the “Make in India” initiative for local electrolyser production. 

Private players have also stepped up with aggressive investments. Ohmium Operations, a key subsidiary of the US-headquartered green hydrogen company, Ohmium International, has inaugurated a gigawatt-scale proton exchange membrane (PEM) electrolyser factory in Doddaballapura, Karnataka. This facility is part of a broader strategy to build modular, highly efficient electrolysers that can be scaled from pilot projects to industrial operations. Alongside Ohmium, companies such as Advait Infratech, Waaree Energies, Hild Electric and Matrix Gas & Renewables are investing in manufacturing facilities for alkaline and PEM electrolysers across Gujarat and other industrial hubs. These investments signal a maturing supply landscape where diverse technologies and product forms are being developed domestically rather than imported.

GreenH Electrolysis has unveiled its first 1 MW PEM electrolyser manufactured at its plant in Jhajjar, Haryana. This unit is set to supply hydrogen to India’s first hydrogen train under the Indian Railways’ “Hydrogen for Heritage” initiative, demonstrating a practical application of domestically made electrolyser technology.  

Greenzo Energy has made notable strides in indigenous electrolyser development. The company launched a 1 MW indigenous alkaline electrolyzer stack, engineered for Indian operating conditions, and has secured robust orders (with an order book reported around Rs 1,200 crore), while also winning an R&D contract from Engineers India Limited (EIL) to supply a modular hydrogen electrolyser unit for deployment at EIL’s R&D complex in Gurgaon, a key step toward scalable, homegrown solutions.  

Ceres Power and Shell have achieved a milestone in solid oxide electrolyser technology with a megawatt-scale SOEC demonstrator system in Bangalore now producing hydrogen, underscoring emerging high-efficiency electrolyser deployments beyond traditional alkaline and PEM systems.

In the broader industrial context, Jakson Green Infinity, part of India’s expanding green hydrogen ecosystem, reports an electrolyser manufacturing capacity of about 300 MW per year, with ambitions to scale into gigawatt capacity aligned with long-term hydrogen targets. 

The push for local manufacturing is complemented by strategic corporate initiatives. Reliance Industries has entered into technology licensing agreements with global electrolyser technology providers, such as Nel Hydrogen Electrolyzer AS, to secure intellectual property and know-how necessary for manufacturing alkaline electrolysers at scale. 

Joint ventures and licensing arrangements are enabling faster knowledge transfer, as seen in Waaree Group’s Valsad electrolyser manufacturing facility, which integrates global technology and supply chains, and Advait’s licensing partnership with China’s Guofu Hydrogen. Such collaborations are helping Indian manufacturers compress development timelines and move rapidly toward commercial scale.

Indian electrolyser makers are also looking beyond domestic demand. As Europe and East Asia expand hydrogen investments and seek diversified supply chains, Indian manufacturers with rising capacity and operational experience are positioning themselves for export opportunities. 

On the deployment side, electrolysers are increasingly embedded in Indian hydrogen projects. JSW Energy’s green hydrogen plant in Karnataka, commissioned under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, uses electrolysers to supply hydrogen directly to industrial feedstocks, such as steel production for low-carbon direct reduced iron (DRI). Similarly, corporate investments in off-grid electrolyser installations, such as Adani New Industries’ 5 MW pilot plantin Kutch, demonstrate applications where decentralised hydrogen production meets coastal industrial demand without reliance on grid infrastructure.  

Innovation Takes Centrestage

While manufacturing and deployment are ramping up, Indian companies are also investing in research and development to enhance technology performance. 

Electrolyser innovation focuses on improving energy efficiency, reducing reliance on rare or costly materials, and enhancing durability under variable renewable power inputs. These are critical for making electrolysers not just cheaper to build but cheaper to operate over long lifecycles. 

Collaboration between industry and academic institutions, such as partnerships involving IITs and technology developers like Hyundai at innovation centres, aims to localise key components, such as advanced membranes and catalysts, while building human capital that can sustain long-term commercialisation. 

Beyond the large conglomerates, smaller deep-tech firms are also innovating. Singapore-based HYDGEN, with significant operations in Mangaluru, recently raised $5 million to scale its proprietary anion exchange membrane (AEM) electrolyser technology, an approach that blends the strengths of alkaline and PEM systems while reducing reliance on costly materials like platinum group metals. HYDGEN’s modular platforms, ranging from small 1 kW systems to 250 kW stack configurations, demonstrate the emerging potential for on-site hydrogen generation applications that reduce logistics costs and enhance supply resilience, particularly for decentralised industrial demand.

Policy Push

India’s policymakers have recognised that building a competitive electrolyser ecosystem is essential not just for domestic green hydrogen supply but also for industrial competitiveness. The National Green Hydrogen Mission, launched by the government, aims to elevate India’s green hydrogen production to 5 million tonnes annually by 2030, a target that inherently depends on large-scale deployment of electrolysers. Government incentives, including production-linked incentives (PLI) for electrolyser manufacturing, have been structured to support this objective, allocating approximately 1.5 GW of domestic manufacturing capacity to a diverse set of companies through competitive tenders. This approach is designed to foster a local supply chain, reduce technology import dependence and improve cost competitiveness in green hydrogen production.

Future Outlook

Looking ahead, India’s electrolyser market is projected to exceed US$ 620 million by 2030, driven by renewable energy expansion, industrial decarbonisation and export-led hydrogen demand. If manufacturing capacity scales as planned, India could emerge as a key hub for both domestic green hydrogen supply and global electrolyser value chains. Challenges persist, particularly in competing with low-cost Chinese manufacturers, addressing component supply constraints, and establishing robust standards and financing frameworks. 

Despite these hurdles, the momentum in India’s electrolyser industry is unmistakable. With policy support, corporate commitment and a blossoming manufacturing ecosystem, India is poised to convert its renewable energy advantage into green hydrogen capacity backed by domestic electrolyser production. In doing so, the country is not only advancing its decarbonisation goals but laying the foundation for a competitive position in the global hydrogen economy.

Why Electrolyzers Are the Cost Lever in India’s Green Hydrogen Push

Falling renewable energy prices and policy incentives are reshaping the economics of green hydrogen in India. With low-cost solar and wind power and support mechanisms that reduce transmission and capital costs, electrolyzers are emerging as the critical link between renewables and competitive hydrogen production, driving costs closer to fossil-based alternatives.

Electrolyzers Explained: One Technology, Multiple Pathways

Alkaline, PEM and emerging anion exchange membrane electrolyzers are shaping India’s green hydrogen roadmap. While alkaline systems dominate early deployment due to lower costs and proven reliability, PEM electrolyzers offer faster response to variable renewables, and AEM technologies promise a middle ground with reduced material costs. Together, these technologies are defining how efficiently and affordably India can scale green hydrogen production.

Electrolyzer Technologies — In Brief

• Alkaline (ALK): Proven, lowest-cost option for large, steady hydrogen production, but less flexible with variable renewables.

• Proton Exchange Membrane (PEM): Fast-ramping and compact, ideal for solar and wind integration, though higher cost due to precious metal use.

• Anion Exchange Membrane (AEM): Emerging hybrid technology aiming to cut costs by avoiding noble metals, still at early commercial scale.

• Solid Oxide Electrolysis Cell (SOEC): High-temperature, high-efficiency systems using steam, promising but largely at pilot stage due to durability challenges.