Scaling Green Hydrogen Production: Challenges and Breakthroughs in Electrolyser Technology
Advancements in electrolyser technology are contributing to the reduction in costs of green hydrogen production, which in turn will make it a viable and appealing choice for industries and Governments worldwide in their energy transition efforts.
May 15, 2025. By News Bureau
The urgency of climate change and the global shift toward decarbonisation have placed green hydrogen at the forefront of clean energy discussions. With nations and industries aligning their strategies to achieve net-zero emissions, green hydrogen has emerged as a key solution to decarbonise hard-to-abate sectors. At the core of green hydrogen production lies electrolysis, a process that splits water into hydrogen and oxygen using electricity from renewable sources.
Advancements in electrolyser technology are contributing to the reduction in costs of green hydrogen production, which in turn will make it a viable and appealing choice for industries and Governments worldwide in their energy transition efforts.
The Role of Electrolysers in Green Hydrogen Production
Today, electrolysers based on different technologies are available for deployment at a scale ranging from a few kW to several MWs, depending on the application. Electrolysis can be carried out through several methods, each with unique advantages and applications:
Advancements in electrolyser technology are contributing to the reduction in costs of green hydrogen production, which in turn will make it a viable and appealing choice for industries and Governments worldwide in their energy transition efforts.
The Role of Electrolysers in Green Hydrogen Production
Today, electrolysers based on different technologies are available for deployment at a scale ranging from a few kW to several MWs, depending on the application. Electrolysis can be carried out through several methods, each with unique advantages and applications:
- Proton Exchange Membrane (PEM) Electrolysis – A mature technology known for producing high-purity hydrogen with rapid response times. It is ideal for applications requiring flexible and high-output operations, such as clean mobility and grid balancing.
- Alkaline Electrolysis – A widely used, cost-effective technology with stable market demand. It is durable, has lower capital expenditure, and is best suited for large-scale industrial hydrogen production.
- Anion Exchange Membrane (AEM) Electrolysis – A developing technology that combines the advantages of PEM and alkaline electrolysis, offering improved efficiency and cost dynamics. It is expected to become commercially viable in the next 1 to 2 years.
- Solid Oxide Electrolysis Cell (SOEC) – A high-temperature electrolysis method that enhances energy conversion efficiency. Its ability to integrate industrial heat sources makes it a promising future solution for large-scale hydrogen production.
- Microbial Electrolysis Cells (MECs) – Uses specialised bacteria to generate hydrogen from organic waste with minimal energy input, supporting a circular economy approach.
- Photoelectrochemical (PEC) Electrolysis – Directly utilises solar energy to split water, providing a sustainable but still-developing alternative.
- Hybrid Electrolysis Systems – Integrates multiple electrolysis technologies to optimise efficiency, scalability, and cost-effectiveness.
Currently, PEM, Alkaline, AEM, and SOEC electrolysers are the most widely adopted due to their efficiency, scalability, cost-effectiveness and level of maturity. PEM electrolysers are preferred for high-purity hydrogen and fast response to renewable energy fluctuations, while alkaline electrolysers remain the most cost-effective choice for large-scale industrial applications. AEM and SOEC electrolysers are relatively new technologies, but their deployment is expected to accelerate as these offer promising improvements in cost and efficiency, paving the way for broader adoption of green hydrogen. As technology advances, additional electrolysis methods will enter commercial markets, further enhancing the hydrogen economy.
Challenges and Considerations in Scaling Green Hydrogen Production
Scaling up green hydrogen production is possible, if certain challenges are addressed by the relevant stakeholders in a timely manner.
Technological Challenges
Electrolysers have witnessed significant advancements in recent years. As mentioned earlier in this article, there are 4 technologies available for deployment. While the start has been good, I believe that incentives in engineering R&D, and digital transformation will help enhance energy efficiency, extend operational lifespan, and reduce degradation. Industry is collaborating with global experts to benefit from global developments. Strategic Government-level support for knowledge exchange will expedite the process. Standards and guidelines are required to keep pace to avoid procedural delays in deployment.
Economic Challenges
The cost of green hydrogen remains a major barrier to demand creation. While the Government has provided some incentives and support, high capital and operational costs continue to be deterrents for adoption by hard-to-abate industries like steel and cement. I believe that introducing mandatory blending of green hydrogen in fossil fuel-based hydrogen and natural gas for industries like refineries, fertilisers, steel, and glass, could drive demand.
Financial incentives and policy support from the Government, like PLI scheme expansion, tax breaks and subsidies for companies investing in green hydrogen production, and viability gap funding for offshore wind, green hydrogen and renewable projects are some of the initiatives that can help.
A holistic approach to promote domestic manufacturing of components will help reduce import dependence. Support in reducing costs for auxiliary components such as power electronics, precision instruments, compressors, and hydrogen storage solutions that are essential for the development of a hydrogen project can contribute to cost reduction.
Infrastructure and Supply Chain Challenges
As a relatively new industry, the journey of green hydrogen is riddled with infrastructural challenges like augmenting the supply of renewable energy for hydrogen production, and establishment of distribution networks of hydrogen pipelines or alternate distribution methods, amongst others. Although hydrogen is already being used in several industries, there will be a lot of effort required to make green hydrogen penetrate new applications at the desired scale.
Providing support to the industry to address the logistical challenges of storage and transport of green hydrogen will enhance its adoption.
Addressing all the above-listed challenges requires continued innovation in electrolyser technology, cost reductions through economies of scale, supportive policies, and investment in infrastructure to enable green hydrogen to become a mainstream energy solution.
Expanding Green Hydrogen Applications
The versatility of green hydrogen is driving its adoption across multiple industries:
Transportation
Hydrogen-powered mobility is gaining momentum as a sustainable solution. Hydrogen fuel cell vehicles (FCVs) convert green hydrogen into electricity, offering long driving ranges, quick refuelling, and zero emissions, with water vapour as the only byproduct.
Hydrogen-based internal combustion engines (ICEs) provide a cost-effective alternative, leveraging existing engine technology while cutting emissions.
Public transport is also embracing hydrogen. Hydrogen-powered buses offer a quieter, zero-emission alternative to diesel, while hydrogen trains are emerging as a cleaner solution for rail transport compared to diesel engines.
Hydrogen is the only available alternative today to fossil fuels for long-range transport on surface, ocean and air. The expansion of hydrogen refuelling infrastructure is crucial to scaling hydrogen mobility, making it more accessible and accelerating the shift toward clean transportation.
Industrial Processes
Green hydrogen is emerging as a key solution for decarbonising heavy industries that have long been major contributors to greenhouse gas emissions. Its adoption is transforming sectors that rely on hydrogen-intensive processes, paving the way for a more sustainable industrial landscape.
In the refining industry, green hydrogen can be used in hydrocracking and hydrotreating processes to remove impurities from crude oil.
Ammonia production, a cornerstone of the fertiliser industry, is another area where green hydrogen offers a cleaner alternative substituting the incumbent fossil-based hydrogen.
The steel industry, one of the largest emitters of CO₂, can also benefit from green hydrogen. As both a reducing agent and an energy source, hydrogen enables greener steel manufacturing by cutting down emissions associated with traditional carbon-based processes.
Power Generation
Green hydrogen is a vital component in renewable energy storage and enhancing grid reliability.
Grid Balancing: By storing surplus energy generated during peak renewable production, green hydrogen helps stabilise power grids. It releases stored energy when demand surges or renewable supply fluctuates, ensuring a steady and dependable power supply.
Power Plants: Hydrogen combustion in gas turbines enables power plants to generate electricity with minimal emissions. This technology provides a reliable, low-carbon energy source, supporting a cleaner and more resilient power sector.
Residential and Commercial Applications
Hydrogen Boilers: Functioning similarly to conventional gas boilers, hydrogen boilers burn hydrogen to generate central heating and hot water. As they emit only water vapour, they offer a sustainable and eco-friendly heating solution for homes and businesses.
GreenH’s Vision for a Multi-Technology Approach
By leveraging advancements in PEM, alkaline, AEM, and SOEC electrolysers (the four main electrolyser technologies available), GreenH aims to optimise cost, efficiency, and scalability in green hydrogen production. Over the next 2-3 years, GreenH will offer all four technologies in India. This diverse portfolio will enable industries to select the most suitable technology for their specific needs.
With this multi-technology strategy, GreenH will be ahead of the curve, providing customers with the flexibility to choose the solution that works best for them for their hydrogen production needs.
The Way Ahead
The Government of India has recognised Green Hydrogen as a catalyst for achieving its net zero targets, providing financial incentives to support the development of the Green Hydrogen industry.
The rapid evolution of electrolyser technology is making green hydrogen more viable than ever. As innovations in PEM, Alkaline, AEM, and SOEC electrolyser technologies continue to enhance efficiency and affordability, I believe that the green hydrogen economy will gain momentum.
Over the next two years, our portfolio of offerings will feature all four electrolyser technologies, enabling industries to unlock the full potential of green hydrogen and contribute to a sustainable future.
We are confident that with timely Government support through green hydrogen purchase obligations and blending mandates in key industries like refineries, fertilisers, and steel, we can accelerate the growth of a sustainable, revenue-generating, and job-creating green hydrogen industry.
Challenges and Considerations in Scaling Green Hydrogen Production
Scaling up green hydrogen production is possible, if certain challenges are addressed by the relevant stakeholders in a timely manner.
Technological Challenges
Electrolysers have witnessed significant advancements in recent years. As mentioned earlier in this article, there are 4 technologies available for deployment. While the start has been good, I believe that incentives in engineering R&D, and digital transformation will help enhance energy efficiency, extend operational lifespan, and reduce degradation. Industry is collaborating with global experts to benefit from global developments. Strategic Government-level support for knowledge exchange will expedite the process. Standards and guidelines are required to keep pace to avoid procedural delays in deployment.
Economic Challenges
The cost of green hydrogen remains a major barrier to demand creation. While the Government has provided some incentives and support, high capital and operational costs continue to be deterrents for adoption by hard-to-abate industries like steel and cement. I believe that introducing mandatory blending of green hydrogen in fossil fuel-based hydrogen and natural gas for industries like refineries, fertilisers, steel, and glass, could drive demand.
Financial incentives and policy support from the Government, like PLI scheme expansion, tax breaks and subsidies for companies investing in green hydrogen production, and viability gap funding for offshore wind, green hydrogen and renewable projects are some of the initiatives that can help.
A holistic approach to promote domestic manufacturing of components will help reduce import dependence. Support in reducing costs for auxiliary components such as power electronics, precision instruments, compressors, and hydrogen storage solutions that are essential for the development of a hydrogen project can contribute to cost reduction.
Infrastructure and Supply Chain Challenges
As a relatively new industry, the journey of green hydrogen is riddled with infrastructural challenges like augmenting the supply of renewable energy for hydrogen production, and establishment of distribution networks of hydrogen pipelines or alternate distribution methods, amongst others. Although hydrogen is already being used in several industries, there will be a lot of effort required to make green hydrogen penetrate new applications at the desired scale.
Providing support to the industry to address the logistical challenges of storage and transport of green hydrogen will enhance its adoption.
Addressing all the above-listed challenges requires continued innovation in electrolyser technology, cost reductions through economies of scale, supportive policies, and investment in infrastructure to enable green hydrogen to become a mainstream energy solution.
Expanding Green Hydrogen Applications
The versatility of green hydrogen is driving its adoption across multiple industries:
Transportation
Hydrogen-powered mobility is gaining momentum as a sustainable solution. Hydrogen fuel cell vehicles (FCVs) convert green hydrogen into electricity, offering long driving ranges, quick refuelling, and zero emissions, with water vapour as the only byproduct.
Hydrogen-based internal combustion engines (ICEs) provide a cost-effective alternative, leveraging existing engine technology while cutting emissions.
Public transport is also embracing hydrogen. Hydrogen-powered buses offer a quieter, zero-emission alternative to diesel, while hydrogen trains are emerging as a cleaner solution for rail transport compared to diesel engines.
Hydrogen is the only available alternative today to fossil fuels for long-range transport on surface, ocean and air. The expansion of hydrogen refuelling infrastructure is crucial to scaling hydrogen mobility, making it more accessible and accelerating the shift toward clean transportation.
Industrial Processes
Green hydrogen is emerging as a key solution for decarbonising heavy industries that have long been major contributors to greenhouse gas emissions. Its adoption is transforming sectors that rely on hydrogen-intensive processes, paving the way for a more sustainable industrial landscape.
In the refining industry, green hydrogen can be used in hydrocracking and hydrotreating processes to remove impurities from crude oil.
Ammonia production, a cornerstone of the fertiliser industry, is another area where green hydrogen offers a cleaner alternative substituting the incumbent fossil-based hydrogen.
The steel industry, one of the largest emitters of CO₂, can also benefit from green hydrogen. As both a reducing agent and an energy source, hydrogen enables greener steel manufacturing by cutting down emissions associated with traditional carbon-based processes.
Power Generation
Green hydrogen is a vital component in renewable energy storage and enhancing grid reliability.
Grid Balancing: By storing surplus energy generated during peak renewable production, green hydrogen helps stabilise power grids. It releases stored energy when demand surges or renewable supply fluctuates, ensuring a steady and dependable power supply.
Power Plants: Hydrogen combustion in gas turbines enables power plants to generate electricity with minimal emissions. This technology provides a reliable, low-carbon energy source, supporting a cleaner and more resilient power sector.
Residential and Commercial Applications
Hydrogen Boilers: Functioning similarly to conventional gas boilers, hydrogen boilers burn hydrogen to generate central heating and hot water. As they emit only water vapour, they offer a sustainable and eco-friendly heating solution for homes and businesses.
GreenH’s Vision for a Multi-Technology Approach
By leveraging advancements in PEM, alkaline, AEM, and SOEC electrolysers (the four main electrolyser technologies available), GreenH aims to optimise cost, efficiency, and scalability in green hydrogen production. Over the next 2-3 years, GreenH will offer all four technologies in India. This diverse portfolio will enable industries to select the most suitable technology for their specific needs.
With this multi-technology strategy, GreenH will be ahead of the curve, providing customers with the flexibility to choose the solution that works best for them for their hydrogen production needs.
The Way Ahead
The Government of India has recognised Green Hydrogen as a catalyst for achieving its net zero targets, providing financial incentives to support the development of the Green Hydrogen industry.
The rapid evolution of electrolyser technology is making green hydrogen more viable than ever. As innovations in PEM, Alkaline, AEM, and SOEC electrolyser technologies continue to enhance efficiency and affordability, I believe that the green hydrogen economy will gain momentum.
Over the next two years, our portfolio of offerings will feature all four electrolyser technologies, enabling industries to unlock the full potential of green hydrogen and contribute to a sustainable future.
We are confident that with timely Government support through green hydrogen purchase obligations and blending mandates in key industries like refineries, fertilisers, and steel, we can accelerate the growth of a sustainable, revenue-generating, and job-creating green hydrogen industry.
- Dhiman Roy, CEO and Director, GreenH Electrolysis
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