Green Hydrogen Plant Setup in India – A Complete Guide
End-to-end guidance for establishing green hydrogen production in India using electrolysis powered by renewable energy. Covers technology overview, regulatory approvals, documents, government incentives, timelines, costs and how DoStartup can help accelerate project implementation.
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Green Hydrogen — An Overview
Green hydrogen is produced by electrolysis that splits water into hydrogen and oxygen using electricity generated from renewable sources (solar, wind, hydro). Unlike grey or blue hydrogen (fossil-fuel derived), green hydrogen is essentially carbon-free and can play a major role in decarbonising industry, transport and power systems. India’s policy push (National Green Hydrogen Mission, Hydrogen Energy Roadmap) and a target of 40% renewable power capacity by 2030 create a strong growth environment for green hydrogen projects.
Market Opportunity
The global/Indian green hydrogen opportunity is large — the sector was valued at USD 4.53 billion in 2022 — and India’s renewable ambitions, abundant solar/wind resources and policy support make it an attractive investment area for early movers.
Clean & Renewable Energy
Green hydrogen is produced with renewable electricity, enabling near-zero operational carbon emissions and supporting national decarbonisation targets.
Efficient Energy Storage
Hydrogen stores energy from intermittent renewables and provides dispatchable fuel or feedstock when renewables are not generating.
Versatility & Sector Decarbonisation
Hydrogen can be used across transport, industrial heating, chemicals and power sectors—helping decarbonise hard-to-electrify processes.
Air Quality & Public Health
Replacing fossil fuels with green hydrogen reduces local air pollutants and benefits public health.
Economic Development
Investment in green hydrogen drives manufacturing, R&D, jobs and new supply chains—stimulating regional economic growth.
Supports Low-Carbon Economy
Green hydrogen is a foundational technology for a low-carbon industrial ecosystem and export-oriented hydrogen economy.
1. Typical Documents Required
Certificate of Incorporation (company registration); PAN & GST registrations; Plant layout & site map; Detailed Project Report (DPR) and feasibility study; Environmental Impact Assessment (EIA) and Environmental Clearance (where required); Pollution NOC / CPCB or SPCB approvals; Insurance documents; Electricity board approvals / open-access permissions; Factory registration under the Factories Act; PESO approvals for storage/handling as applicable; Occupancy certificate; Product testing / BIS compliance documents (if applicable); Detailed Process Flow Diagram, DPR for CTE and other technical submissions.
Step-by-step Setup Procedure
1. Project entity & financing: Incorporate the project company, secure project financing, and prepare a Detailed Project Report (DPR).
2. Site selection & acquisition: Choose land with proximity to renewable power sources, water supply and logistics; complete land acquisition and due diligence.
3. Permits & regulatory approvals: Obtain CTE/CTO from SPCB, EIA/Environmental Clearance (if applicable), PESO approvals for storage/pressure vessels, factory registration, fire NOC, CGWA clearance (if groundwater use), municipal and local permits.
4. Power & renewable integration: Secure renewable power via open access/PPAs or captive renewable capacity; apply for grid connectivity and any subsidy/waiver schemes.
5. Electrolyser procurement & plant engineering: Procure suitable electrolyser technology (alkaline, PEM, SOEC as per project needs), balance-of-plant equipment, storage and safety systems; implement EHS and process controls.
6. Construction & commissioning: Build civil, mechanical and electrical systems, install electrolysers, storage and compression systems; commission with performance & safety tests.
7. Operations & off-take: Begin steady-state hydrogen production, operate storage/distribution infrastructure, and execute off-take agreements or blending/export plans. Maintain compliance reporting, monitoring and maintenance regimes.
Mandatory Licences & Approvals (concise list)
Consent to Establish (CTE) & Consent to Operate (CTO) from SPCB; Environmental Clearance (if EIA required); Fire department NOC; Factory Licence (Factories Act); PESO approval for storage & handling; CGWA clearance (groundwater use, if required); Municipal trade & occupancy permits; Authorization for hazardous waste management (if any hazardous residues); BIS/PESO/Bureau certifications as applicable; Electricity open access & grid connectivity approvals.
Capital & Operating Cost Notes
Capital expenditure depends on electrolyser capacity, renewable power arrangement, storage and safety systems. Small-to-mid scale plants were previously estimated in the ~₹10–15 crore range as a rough starting point; large-scale projects require substantially higher capex. Operating costs depend on electricity price, electrolyser efficiency, water treatment, maintenance and staffing.
- Project financing / term loan
- Equity
- Grants or viability gap funding (where available)
| Manufacturer (Production Capacity) | License Fees/year (INR) |
|---|---|
| Indicative small/mid-scale capex | ₹10–15 crore (project-dependent, ballpark) |
| Large-scale commercial project | Varies — scale & technology dependent (typically several tens to hundreds of crores) |
Typical Project Timeline
Project durations vary by scale, approvals and land/power readiness. The timeline below is indicative for medium-to-large scale projects.
Feasibility, DPR & project financing
3–9 months
Site studies, techno-economic feasibility, DPR preparation and securing project finance or equity commitments.
Permits, clearances & power tie-up
6–12 months (parallel to procurement)
CTE/CTO, EIA/EC (if applicable), PESO/Fire/CGWA approvals and securing renewable power supply or PPA.
Procurement & construction
9–24 months (project dependent)
Electrolyser procurement lead times, EPC works, balance-of-plant installation, storage & safety systems, civil works and integration with renewable power.
Commissioning & ramp-up
3–6 months
Performance testing, safety validation, regulatory sign-offs and ramping up to commercial operations.
Total Estimated Time
Overall indicative timeline: ~3–4 years from project conception to commercial operation for large-scale green hydrogen plants; smaller projects or fast-tracked cases may be shorter depending on approvals and supply chain readiness.
Listicles
Types of Hydrogen (by production method)
- Grey Hydrogen — produced from natural gas (steam methane reforming); high CO₂ emissions.
- Blue Hydrogen — produced from fossil fuels with carbon capture and storage (CCS) to reduce emissions.
- Green Hydrogen — produced via electrolysis powered by renewable electricity; zero direct CO₂ emissions.
Key Government Incentives & Support (select measures)
- 25-year waiver on inter-state transmission charges for projects commissioned before 30 June 2025 (reduces operating costs for eligible projects).
- Fast-track access to renewable energy (open access within 15 days) to ensure timely supply of green power.
- Ability to store renewable energy for up to 30 days to stabilise hydrogen production (subject to state tariff rules).
- Priority grid connectivity under interstate transmission rules to facilitate reliable renewable supply.
- Land allocation within renewable parks and plans for dedicated green hydrogen manufacturing zones.
- Support for hydrogen storage/export infrastructure including port bunkers with concessional support from port authorities.
- Electricity used for green hydrogen can contribute to Renewable Purchase Obligation (RPO) compliance; excess can benefit local DISCOM RPOs.
- Single-window online portal (MNRE) to streamline permissions and clearances with a target 30-day processing window.
- Centralised bidding for aggregated green-hydrogen demand by the government to create market pull.
Principal Uses & Sectoral Applications
- Industrial feedstock (ammonia, methanol, refining, chemicals)
- Direct industrial heat and material processing (steel, cement)
- Fuel for heavy transport (trucks, buses, ships with fuel cells or combustion)
- Long-duration energy storage and seasonal balancing of renewable systems
- Export (liquefied hydrogen or hydrogen derivatives like ammonia)
Why Choose DoStartup for Green Hydrogen Projects
Expert consultation on regulatory clearance, project structuring and techno-commercial planning.
Support in obtaining PESO, CTE/CTO, Environment Clearances and grid/power tie-ups.
Proven track record in energy projects, regulatory liaison and structured project delivery.
End-to-end licensing & clearance support
Technical advisory on electrolyser selection and renewable integration
Assistance with funding tie-ups, DPR preparation and cost-optimisation
DoStartup helps investors and project developers reduce timeline risk and improve approval success through focussed technical and regulatory support.
Who Should Consider Setting Up a Green Hydrogen Plant
Renewable power developers seeking value-added off-take for excess renewable generation; industrial users requiring low-carbon feedstock (steel, chemicals, fertiliser); fuel & mobility integrators for heavy transport; energy exporters and technology providers.
Project developers, manufacturing conglomerates and strategic investors aiming to enter the green hydrogen value chain.
Renewable IPP & solar/wind park operators
Industrial off-takers (steel, fertilisers, refineries)
Logistics & fuel suppliers exploring hydrogen distribution
Manufacturers of electrolysers, compressors, storage systems
Early movers can capture supply-chain advantages and policy incentives while contributing to India’s net-zero objectives.