India plans 'electrolyzer on lease' initiative to boost renewable hydrogen: official

India will introduce initiatives that will boost the consumption of renewable hydrogen, including an "electrolyzer on lease" agreement, Prasad Arvind Chaphekar, director in the Ministry of New and Renewable Energy, said July 23.

According to the upcoming initiative, the consuming company can receive renewable hydrogen without incurring the cost of owning an electrolyzer, Chaphekar said at the Second Bharat Green Hydrogen Summit 2026 in New Delhi.

"We'll be releasing something called a 'model electrolyzer service agreement' shortly," Chaphekar said. According to it, "the hydrogen plant is going to be on lease -- the user will get the power, use the molecule and will pay a lease rent to the hydrogen plant provider."

Chaphekar said this measure will help people who want to use renewable hydrogen but have no idea how to set up a plant for it. These consumers can get the power and own the output without owning the plant.

An observer at the Hydrogen Summit said the "electrolyzer on lease" initiative can help lower hydrogen consumers' capital expenditure.

Chaphekar said MNRE will also issue a "hydrogen standard" in the next couple of months to provide clarity on what can be developed over the next two or three years.

"We are taking several steps which may seem small, but the effect will be quite large," he said.

Transmission line setup prioritized

The MNRE is taking steps to boost the construction of transmission networks connecting to renewable hydrogen projects as a priority over the next six months, to help them be set up before renewable hydrogen plant construction starts.

Chaphekar said about 2.3 million mt/year of renewable ammonia has been committed to consumers, taking into account domestic and overseas binding offtake deals.

"Since plants take three to four years for construction, you will see a sudden increase (in supply) around 2028-29," he said at the summit.

Indian government auctioned 724,000 mt/year renewable ammonia in 2025 under the Rupees 197.44 billion ($2.04 billion) National Green Hydrogen Mission, concluded at a weighted average price of around $604/mt, according to industry sources.

Among recently announced industry deals, ACME signed up with IHI of Japan to supply 488,000 mt/year of renewable ammonia, while Reliance Industries signed up with Samsung C&T of South Korea to supply an undisclosed quantity of renewable ammonia worth $3 billion.

Platts, part of S&P Global Energy, assessed the India Renewable Hydrogen Term Contract at $3.21/kg on July 23, down 3.89% month over month.