Green Hydrogen Plant Setup

Green Hydrogen Plant Setup- An Overview

Are you planning to dominate the India’s green hydrogen market valued at $4.53 billion in 2022? If yes, you may go ahead with green hydrogen plant setup with our expert consultants.

The green hydrogen plant setup in India is emerging as a key element in the country’s transition to a more sustainable energy future. Green hydrogen, produced through the electrolysis of water powered by renewable sources like solar and wind, is crucial for India to meet its emissions reduction goals.

The government is actively supporting the growth of the green hydrogen sector through policies like the National Hydrogen Energy Roadmap and the National Mission on Hydrogen Energy. With India aiming to achieve 40% of its installed power capacity from renewable sources by 2030, the green hydrogen industry is poised for significant expansion.

Facing roadblocks in green hydrogen plant setup in India? Talk to Corpbiz consultants today and easily secure green hydrogen plant license.

What is Green Hydrogen?

Green hydrogen is produced through a process called electrolysis, where water is split into hydrogen and oxygen using an electrical current. Unlike grey and blue hydrogen, which are derived from fossil fuels, green hydrogen is a clean alternative that significantly reduces greenhouse gas emissions. The production of green hydrogen plays a vital role in combating global warming by replacing grey hydrogen, which is produced from fossil fuels without carbon capture.

The primary goal of establishing a green hydrogen plant in India is to combat global warming and reduce dependence on fossil fuels. By transitioning to green hydrogen, India aims to replace grey hydrogen, offering a cleaner, more sustainable energy source for the future.

This growing sector offers a unique business opportunity, as green hydrogen plays an essential role in India’s move towards a cleaner energy mix. The government's continued investment in green hydrogen infrastructure, along with private sector involvement, makes it an ideal time to consider a green hydrogen plant setup.

As the country strives to reduce its carbon footprint and enhance energy sustainability, businesses that enter this space will be part of India’s clean energy revolution.

Types of Hydrogen

Hydrogen is a critical gas used across various industries, making it essential for businesses to understand the type of hydrogen they procure. Hydrogen production is categorized into three types based on the production process:

• Grey Hydrogen: The most common form, is produced from natural gas like methane. However, it releases carbon dioxide into the atmosphere, contributing to harmful emissions.
• Blue Hydrogen: Similar to grey hydrogen in production but with a crucial difference—its carbon emissions are captured, stored, or reused, preventing toxins from being released into the environment.
• Green Hydrogen: Produced using water and renewable electricity sources, green hydrogen is entirely emission-free with no harmful by-products. Due to its environmental advantages, countries worldwide are investing heavily in this sustainable technology.

Benefits of Green Hydrogen Plant Setup in India

The benefits of green hydrogen plant setup in India are as follows:

• Clean Energy: Produced using renewable sources like solar, wind, or hydro, green hydrogen significantly reduces greenhouse gas emissions, contributing to the fight against climate change.
• Efficient Energy Storage: Hydrogen can be stored and transported with ease, offering an effective solution for managing energy from intermittent renewable sources such as wind and solar. It is one of the significant benefits of green hydrogen plant setup.
• Versatility: With applications spanning transportation, heating, and power generation, green hydrogen serves as a highly adaptable and sustainable energy source.
• Enhanced Air Quality: By replacing fossil fuels, green hydrogen reduces air pollution, leading to improved public health and lower pollution-related risks.
• Economic Growth: The green hydrogen industry fosters job creation and economic opportunities in sectors such as manufacturing, infrastructure development, and technology innovation. It is one of the substantial benefits of green hydrogen plant setup.
• Path to a Low-Carbon Economy: Green hydrogen is pivotal in the global transition to a low-carbon economy, offering a cleaner, sustainable alternative to traditional fossil fuels.

Documents Required to Get a Green Hydrogen Plant License

The list of documents required to get a green hydrogen plant license is as follows:

• Certification of Incorporation
• PAN card
• Layout and site map of the plant
• Environmental clearances (Pollutions NOC, CPCB/SPCB permits)
• Insurance Documents
• Tax Registration (GST, TDS, etc.)
• Electricity board permits
• Industrial licenses

Procedure for Green Hydrogen Plant Setup in India

The step-by-step procedure for green hydrogen plant setup in India is as follows:

• Formation of a project entity, followed by raising funds or finance to execute the project.
• Identification and procurement of a hydrogen plant manufacturing facility site.
• Procurement of various green hydrogen plant licenses, regulatory permits, and approvals from both central and state authorities.
• Project Financing.
• Procurement of electricity from renewable sources such as solar, wind, etc., and ensuring adequate water sources.
• Procurement of electrolyser equipment and installation.
• Production of Green Hydrogen.
• Storage of green hydrogen.
• Establishment of transportation and distribution of green hydrogen.

List of Green Hydrogen Plant License to be Obtained

The list of green hydrogen plant license to be obtained for setting up hydrogen plant in India is as follows:

• Consent to establish and consent to operate.
• No Objection Certificate from the Fire Department.
• Environmental clearance from the concerned regulatory body.
• Registration under the Factories Act.
• Approval from the Petroleum and Explosive Safety Organization (PESO).

Government Incentives for Green Hydrogen Plant Setup in India

The government has introduced the green hydrogen policy to accelerate the development of green hydrogen plants across the country. This policy provides various subsidies and incentives for green hydrogen plant setup in India, including:

• Waiver of Transmission Charges: Green hydrogen projects commissioned before 30th June 2025 will receive a 25-year waiver on transmission charges, significantly reducing operational costs.
• Access to Renewable Energy: Manufacturers will be granted open access to procure renewable energy within 15 days of submitting an application. Renewable energy can be sourced from power plants, exchanges, or third parties, ensuring flexibility in energy procurement.
• Energy Storage: Manufacturers can store renewable energy for up to 30 days to produce green hydrogen. Storage usage will incur tariffs set by the respective state commission.
• Priority Connectivity: Under the Electricity Interstate Transmission Charges Rules 2021, green hydrogen plants will receive priority connectivity from energy generation to manufacturing.
• Land Allocation: Land for green hydrogen plants will be allocated in renewable energy parks. The government also plans to establish manufacturing zones dedicated to green hydrogen production.
• Bunkers for Storage and Export: Manufacturers can set up bunkers near ports for hydrogen storage and export. Port authorities will facilitate this at nominal fees, enhancing logistical efficiency.
• Renewable Purchase Obligation (RPO) Compliance: The electricity used for production will count towards the RPO compliance of the manufacturer. Any energy consumed above the obligation limit shall be discounted with the RPO of the DISCOM of the area where the plant is located.
• Support for Distribution Licensees: Distribution licensees can procure renewable energy for green hydrogen production, paying only wheeling charges and a nominal fee to the state commission.
• Dedicated Manufacturer Portal: The Ministry of New and Renewable Energy (MNRE) will create a portal to streamline permissions and clearances for green hydrogen manufacturers. All approvals will be processed within 30 days of application submission.
• Bidding Invitations: The government will invite bids to aggregate green hydrogen requirements from various sectors, promoting collaboration and market development. These measures aim to position the country as a global hub for green hydrogen production, boosting economic growth while transitioning to clean energy.

Compliances for Green Hydrogen Plant Setup in India

The list of compliances for green hydrogen plant setup in India is as follows:

• Flow diagram
• Incorporation of the company
• GST Compliance
• Occupancy Certificate
• Environmental Impact Assessment
• Environmental Clearance
• Construction Plan Approval
• Environment Management Plan
• Environmental Health and Safety Plan
• Compliances under Labour Codes
• CGWA Clearance
• Detailed Project Report (DPR) for CTE
• Feasibility Report for CTE
• Consent to Establish the factory
• FIRE No Objection Certificate (NOC)
• Factory License
• Trade License
• Registration under BIS for Product Compliance
• BIS/CPCB Standards Test Reports
• PESO License
• Hazardous Waste Management Authorization

Green Hydrogen Plant Setup Cost in India

The green hydrogen plant setup cost in India varies on several factors, such as capacity of production and chosen technology for a plant.

Though the self-investment range of Rs.10 to 15 crore can be considered as a starting point. However, additional investment may be necessary depending on the specific project requirements.

Timeline for Green Hydrogen Plant Setup

The timeline for Large-scale green hydrogen plant setup in India can take around 3 to 4 years. The time may get extended in case of regulatory delays and other factors.

Reasons to Trust Corpbiz for Green Hydrogen Plant License

Given below are the reasons why entrepreneurs prefer our Corpbiz experts for obtaining a green hydrogen plant license-

• Easy Consultation Support for Getting a Green Hydrogen Plant License
• Customized Guidance for Green Hydrogen Plant Setup in India
• 99.2% Industry Leading Success Rate for Licensing Approval for Green Hydrogen Plant Setup
• Successfully Assisted in 500+ Green Energy Projects
• Network of 100+ Specialists in Energy Compliance
• Saved 50 Lakh+ Rupees of Entrepreneurs in the Green Space
• 24/7 Client Assistance to Simplify the Process of Green Hydrogen Plant Setup
• Experience Working with 50+ Government Authorities and Regulatory Bodies for Energy Projects