Green Hydrogen Manufacturing Techniques in India: A Comprehensive Techno-economic, Policy, and Industrial Assessment for Sustainable Energy Transition

Abstract

The global transition toward low-carbon energy systems has positioned green hydrogen as a critical energy carrier for achieving deep decarbonization across industrial, transportation, and power sectors. Green hydrogen, produced through water electrolysis powered by renewable energy sources, offers a sustainable alternative to conventional fossil fuel-derived hydrogen. India, with its abundant renewable energy resources, rapidly growing energy demand, and ambitious climate commitments, has emerged as a strategic player in the global green hydrogen economy. The launch of the National Green Hydrogen Mission in 2023 marked a significant policy shift toward establishing India as a leading producer and exporter of green hydrogen. This study provides a comprehensive assessment of green hydrogen manufacturing techniques in India, focusing on technological pathways, economic feasibility, policy frameworks, and industrial deployment opportunities. The paper examines key manufacturing technologies including alkaline water electrolysis (AWE), proton exchange membrane (PEM) electrolysis, solid oxide electrolysis (SOEC), anion exchange membrane (AEM) electrolysis, and biomass-based hydrogen production. A comparative techno-economic evaluation is conducted using parameters such as energy efficiency, capital expenditure, operational costs, scalability, and suitability under Indian operating conditions. The findings indicate that alkaline electrolysis currently dominates due to its technological maturity and lower capital cost, while PEM systems provide superior flexibility for renewable integration. Statistical cost projections suggest that green hydrogen production costs in India may decline from USD 4–6/kg in 2025 to USD 1.5–2/kg by 2030, driven by falling renewable electricity costs and domestic electrolyzer manufacturing. Indian states such as Gujarat, Rajasthan, Tamil Nadu, Karnataka, and Odisha are emerging as major hydrogen production hubs due to favorable solar and wind resources. Despite strong growth potential, significant challenges remain, including high capital investment, storage limitations, water availability concerns, infrastructure gaps, and dependence on imported electrolyzer technologies. The study concludes that India possesses strong comparative advantages for becoming a global green hydrogen leader, provided strategic investments in research, manufacturing, and infrastructure are accelerated.