The winners of India’s first green hydrogen and electrolyser subsidy auctions are announced

The outcomes of India's first auctions for subsidies on green hydrogen and electrolyzers have been released, and Reliance, the industrial conglomerate, emerged as a significant victor in both competitive processes. In the green hydrogen auction, where the maximum subsidy per kilogram decreased from 50 rupees ($0.60) in the first year to 40 rupees in the second and 30 rupees in the third, subsidies were granted to eight out of thirteen participating companies.

India has set an ambitious target of producing five million tonnes of green hydrogen annually by 2030, aiming to achieve cost parity with grey hydrogen derived from unabated natural gas in the latter half of this decade. However, there is concern about the relatively low subsidy per kilogram compared to the offerings in the US and Europe. Analysts emphasize the need for a substantial reduction in the costs of both round-the-clock renewable electricity and electrolyzer prices to effectively compete with grey hydrogen.

In a separate auction for electrolyzer manufacturing subsidies, which featured a maximum incentive of 4,440 rupees per kilowatt of capacity sold, the competition was intense. With 21 bids submitted—14 for any technology and seven specifically for Indian-developed electrolysers—only eight winners were announced, meeting the 1.5GW manufacturing capacity cap. Adani, led by billionaire Gautam Adani, bid for capacity in both tranches but secured only partial subsidy for the latter.

The successful bidders include Reliance Electrolyser Manufacturing Limited, Ohmium Operations Private Limited, John Cockerill Greenko Hydrogen Solutions Private Limited, Advait Infratech Limited (in consortium with Rajesh Power Service Private Limited), Jindal India Limited, L&T Electrolysers Limited, Homihydrogen Private Limited, and Adani New Industries Limited. The competitive landscape highlights the challenges and opportunities India faces in fostering a robust green hydrogen industry, calling for strategic efforts to overcome cost barriers and enhance competitiveness on the global stage.