GreenH Electrolysis, a joint venture between H2B2 Electrolysis Technologies of Spain and GR Group of India, is setting up a 1 GW Proton Exchange Membrane (PEM) electrolyzer manufacturing facility in India.

This facility will be located at the Reliance MET Industrial Park in Jhajjar District, Haryana, with its first phase currently underway, and operations are expected to commence in October this year.

The joint venture brings together the technical expertise of H2B2 Electrolysis Technologies, a global player in the hydrogen sector through electrolysis, and the project development and engineering, procurement, and construction (EPC) experience of GR Group, an infrastructure company in India.

The technology for the plant is provided by the Spanish parent company, H2B2 Electrolysis Technologies. The plant’s initial capacity will be 100 MW, and GreenH plans to scale it up to 500 MW in two years rapidly.

The long-term vision includes expanding the capacity further to reach 1 GW in Phase 2.

Ashwin Agarwal, Director of GR Promoter Group, said GreenH’s facility will help meet the rising demand for electrolyzers, especially in the commercial and industrial segments.

The green hydrogen market in India is poised for exponential growth, with hydrogen demand expected to increase fourfold by 2050, primarily driven by the steel industry and heavy-duty transportation.

As India currently spends over $160 billion annually on energy imports, a figure that could double in the next 15 years, the shift towards green hydrogen presents an opportunity to reduce dependence on fossil fuels and bolster energy security, the company said.

In January this year, the Union Cabinet approved the National Green Hydrogen Mission to facilitate demand creation, production, utilization, and export of green hydrogen with an initial outlay of ₹197.44 billion (~$2.3 billion).

The National Hydrogen Mission aims to accelerate green hydrogen production in India and align the nation’s energy transition efforts with global best practices in technology, policy, and regulation.

Recently, the Ministry of New and Renewable Energy released a framework document outlining incentive programs for the manufacturing of electrolyzers and the production of green hydrogen, with a financial outlay of ₹174.9 billion (~$2.1 billion).