Why localization of electrolyzer manufacturing capacity be a steep challenge for India?

Mr. Ravi Shekhar, Director & Head, of Eninrac Consulting says “India's quest to localize electrolyzer and fuel cell manufacturing capacity for green hydrogen production represents a commendable yet intricate challenge. The nation's aspirations to lead in the green hydrogen sector are founded on the imperative of mitigating climate change, ensuring energy security, and fostering economic growth. However, the path to achieving these ambitions is riddled with multifaceted hurdles that span technological, economic, social, and environmental dimensions.

The challenges related to materials supply chains, highlight India's vulnerability to global market fluctuations and geopolitical tensions. To overcome these challenges, India must urgently develop a robust domestic supply chain for critical materials, invest in research and innovation, and foster international collaborations. Simultaneously, addressing the immaturity of the electrolytic hydrogen market, optimizing electricity resources and markets, and building a comprehensive hydrogen infrastructure are essential steps to ensure the viability of green hydrogen as a clean energy source.

Furthermore, India's commitment to energy and environmental justice, workforce development, and international competitiveness is pivotal for the equitable and sustainable growth of the green hydrogen sector. By addressing these challenges comprehensively and proactively, India can not only secure its energy future but also make significant contributions to global efforts in combating climate change. The localization of electrolyzer and fuel cell manufacturing capacity is not just a challenge; it is a transformative opportunity to shape a more sustainable and prosperous future for the nation and the world.”