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China has come to dominate nearly 85% of global manufacturing capacity of Alkaline Electrolyser.

What is an Electrolyser?

An electrolyser is a device that uses electricity to split water molecules into hydrogen and oxygen through the process of electrolysis. It's a key component for producing green hydrogen, a clean and sustainable fuel source with applications in transportation, industry, and energy storage.  

Key Characteristics of Green hydrogen

• Supports climate change goals and decarbonization of industries.
• Can store and deliver energy from renewables over time and distance.
• Can be part of a circular green economy.
• Hydrogen is colourless, odourless, and non-toxic, but highly flammable.
• Helps achieve net-zero emissions and energy security.

How China become champion in electrolyser manufacturing?

• Manufacturing Scale: China controls about 85% of global alkaline electrolyser capacity
• Cost Benefit: Chinese alkaline electrolysers are up to 45% cheaper for international buyers, especially in Europe.
• Availability of Raw Material: Abundant domestic access to raw materials like nickel and steel lowers costs.
• Development and Construction: China not only producing electrolysers but also constructing overseas hydrogen plants.

Challenges for China in global expansion for Elecctrolyser

• China lacks consistency with international best practices.
• Credibility issues with performance, durability, and total emissions over lifecycle.
• Uncertainty in policies overseas (tariffs, trade, green hydrogen subsidies) produces risk for exporter 

• Operating electrolysers below certain load thresholds (due to variability) causes safety, efficiency issues. 

• Producing green hydrogen at scale needs stable, abundant renewable electricity; but supply sometimes mismatched with demand locations. 

What India can do for emerging in Electrolyser production?

• Invest in Research and Development as well as indigenous technology - Fund R&D through CSIR, IITs, and national labs for indigenous electrolyser designs. Offer incentives for private firms to invest in pilot and scale-up technologies.

• Developing mature supply chain: Provide PLI (Production Linked Incentives) for electrolyser manufacturing (similar to solar or semiconductor PLI schemes). 

• Developing stock of Raw material: Secure international partnerships for mineral supply (e.g., Africa, Australia). Encourage recycling and circular economy systems for precious metals. 

• Global Collaboration: Partner with electrolyser leaders (EU, Japan, Australia) for joint ventures and tech transfer.  

• Skill development and training: Electrolyser manufacturing and maintenance require specialized skills.

National Green Hydrogen Mission (NGHM)

• Objectives: Boost production, develop infrastructure, and create export markets.
• Budget of ₹19,744 crore, targets reducing green hydrogen costs to $1/kg by 2030 to compete globally.
• Key Programs:
• SIGHT Program: Allocates incentives for green hydrogen production (862,000 tonnes/year to 18 companies) and electrolyzer manufacturing (3,000 MW/year to 15 companies) as of August 2025.
• Green Hydrogen Hubs: Targets 100,000 tonnes/year per hub near ports or industrial clusters.
• Green Hydrogen Policy (2022): Waives interstate transmission charges for projects until 2030 and allows 30-day renewable energy banking.
• Economic Impact: Expected to create 6 lakh jobs and save ₹1 lakh crore in fossil fuel imports by 2030.

Source : The Hindu and IAS Gyan