Hydrogen Projects in India: Reducing risk by smart planning and accurate market fit – by Aniket Choudhari

Takeaways 

• Hydrogen projects in India are gaining momentum thanks to policy support, industrial demand, and export ambition, but without a clear plan, the risks are high. 
  
• Smart planning and the right product fit means aligning the right partner, right technology, electrolyser capacity, auxiliary equipment, solid funding, pre-defined off-taker, and lifecycle cost (CAPEX & OPEX) with local site conditions. 
  
• Product fit also means deciding on the deployment configuration: containerised modular units or large indoor, custom‑built plants.
  
• Stargate Hydrogen’s modular systems, available in 1 MW, 5 MW, and 10 MW containerised configurations, are Ideal for hydrogen projects in India and make phased development possible.  
  
   

About the author

Aniket Choudhari is the Senior Manager of Business Development at Stargate Hydrogen. With a decade of experience in the Indian energy landscape, he worked on techno-commercial for electrolyser and fuel cell technologies, supporting their deployment across industries.

Aniket spent years in the automotive sector and served as the Manager for International Investment Promotion for a German region in India, where he facilitated cross-border investments, industrial collaborations and technology partnerships. He holds a master’s degree in Process Engineering and Energy Technology from the University of Applied Sciences Bremerhaven, Germany. 

Why Smart Planning Matters for Hydrogen Projects in India 

India’s hydrogen agenda is ambitious. Under the National Green Hydrogen Mission, the country targets 5 million metric tons of green hydrogen by 2030. For companies stepping into this domain, it is not enough to announce capacity; what matters is how effectively the project is executed and integrated into the broader ecosystem. 

Smart planning helps bridge the gap between announcement and performance. The context for Hydrogen Projects in India has layers of complexity: renewable power tariffs differ from state to state, grid stability can be variable, water access and quality vary, and local regulatory and logistical frameworks differ. Overlooking any of these can lead to cost overruns, low utilisation, or stranded assets. 

For instance, many hydrogen projects in India and globally face delays because the electrolyser manufacturing, installation, commissioning and auxiliary infrastructure scale‑up were underestimated. Choosing an ill‑fitting technology or form‑factor can result in poor reliability, high maintenance, or lower than expected output. In India, where CAPEX is substantial, and OPEX is often driven by power cost and logistics, these misalignments become magnified. 

Thus, the objective of this article is to present a detailed and structured approach for planning hydrogen projects in India, focusing on product fit as a core dimension of risk mitigation. 

Core Elements of Smart Planning for Hydrogen Projects in India

Technology Choice 

Selecting the right technology is the cornerstone of a successful hydrogen project. Electrolysers represent up to half of the total investment cost and directly influence efficiency, uptime, and lifecycle OPEX. 

For Hydrogen Projects in India, conditions such as high ambient temperatures, varying water quality, and grid fluctuations demand robust and adaptable electrolyser designs. This is where Stargate Hydrogen’s alkaline technology offers a distinct advantage. 

Stargate’s ceramic-based catalyst design eliminates the need for scarce precious metals, making its systems both cost-efficient and easier to maintain. Their electrolysers are built to tolerate fluctuating renewable input and harsh operational environments, features that directly align with Indian site realities. 

“We’ve focused on building systems that perform under variable conditions and grow with demand,” says Marko Virkebau, CEO of Stargate Hydrogen. “That’s what customers in India and other developing hydrogen markets really need.” 

Selecting the most appropriate electrolyser technology is one of the first and most critical decisions. For hydrogen projects in India, this decision must factor in: efficiency (kWh per kg H₂), robustness under site conditions, availability of parts/service, local manufacturing trends and compatibility with renewable power supply. 

Key considerations in the local context: 

• Electrolysers account for 30‑50% of green hydrogen production costs.  

• Local manufacturing is emerging (for example, plants being set up in Gujarat), which can reduce lead‑time and cost.  

• Technologies must tolerate ambient extremes, grid variability, and water quality issues typical of Indian sites. 

Scale & Capacity of Electrolyser 

India’s hydrogen developers often face uncertainty about long-term demand and infrastructure readiness. Overbuilding capacity too early can lead to stranded assets, while undersizing plants limits future competitiveness. 

Stargate Hydrogen’s modular systems, available in 1 MW, 5 MW, and 10 MW containerised configurations, make phased development possible. Developers can start small, validate performance, and expand as off‑take agreements and grid integration mature. This approach spreads risk and matches investment to real market progress.  

Determining the correct size and scaling strategy for the electrolyser is fundamental for hydrogen projects in India. Too large a plant relative to offtake and resource availability leads to under‑utilisation and high fixed cost; too small a plant may miss economies of scale and future demand. 

Smart planning includes: 

• Estimate realistic hydrogen demand (domestic feedstock, export, hydrogen as carrier) with conservative assumptions. 

• Ensure matching with renewable power (and grid/back‑up) to achieve high utilisation (preferably > 60‑70%). 

• Adopt a phased strategy: Begin with a smaller module, validate operations, expand once offtake and logistics are confirmed. 

• Design the system for modular growth: e.g., adding 5 MW blocks rather than a single large 100 MW unit. 

Containerised vs Indoor Solutions

Product fit also means deciding on the deployment configuration: containerised modular units or large indoor, custom‑built plants. For India, initial flexibility and scalability often favour containerised systems, but for large‑scale operations, indoor plants may offer lower lifecycle cost. 

Containerised units benefit projects with uncertain offtake, remote or brown‑field sites, or early phase deployment, since they reduce civil works, shorten lead time, and can be relocated or expanded. Indoor plants demand more upfront civil infrastructure, longer lead time, but once built, can deliver lower OPEX per unit hydrogen due to better integration, higher density, and often economies of scale. 

Containerised vs Indoor Deployment Comparison 

Cost‑Life‑Cycle Thinking: CAPEX & OPEX 

A recurring planning failure is focusing only on upfront CAPEX and neglecting OPEX and the lifetime cost of ownership. For Hydrogen Projects in India, OPEX (especially power cost, water logistics, and maintenance) often dominates life‑span cost. 

Smart planning includes: 

• Estimating cost per kg of hydrogen (and derivative) over plant life, including all OPEX and replacement costs. 

• Evaluating electricity cost (which depends on PPA rate or direct access), stack replacements, water/desalination cost, and logistics. 

• Undertaking sensitivity analysis: what happens if utilisation = 50% rather than 70%, or power cost increases by 10%? 

• Building contingency for grid or resource disruptions, which may increase OPEX or reduce output. 

Local Context & Integration 

In India, each site comes with a unique combination of resources, regulations, infrastructure, and industry linkages. A project’s success depends on how well planning integrates with these local factors. 

Important context elements: 

• State‑wise renewable tariffs, direct access rules and transmission availability vary widely. 

• Water availability and quality: coastal vs inland sites have different costs and challenges. 

• Logistics: export‑oriented hydrogen projects in India require port access, ammonia or hydrogen carrier transport, and bunkering. 

• Industrial ecosystem: Is the hydrogen output consumed domestically (fertilisers, chemicals, steel) or directed to export? Domestic offtake may involve policy/subsidy regimes. 

• Regulatory/permitting: India’s regulatory frameworks for hydrogen, storage, transport are still emerging; developers must plan for delays and evolving rules. 

Planning Framework for Risk Reduction 

Here is a structured planning checklist to help reduce project risk through product‑fit and smart planning for Hydrogen Projects in India: 

Define the demand/offtake scenario 
Begin with clarity about whether the hydrogen (or derivative) goes to domestic feedstock, export, or both. Secure offtake agreements and avoid expenditures without market visibility. 

Site & resource assessment 
Conduct rigorous assessments of renewable power availability and cost, grid stability, water access/treatment, land/permitting risk, logistics (transport, storage, export infrastructure). 

Technology & product fit selection 
Choose the technology type (alkaline, PEM, SOE) that aligns with site conditions. Decide form‑factor (containerised vs indoor). Match vendor track record, service network, and modularity. 

Scale & phasing strategy 
Decide initial size and future expansion roadmap. Consider launching smaller capacity and scaling once operations are proven. Modular build reduces early risk. 

Cost modelling: CAPEX vs OPEX 
Model life‑cycle cost of hydrogen production, assess sensitivity to key variables (power cost, utilisation rate, maintenance). Include logistic and water cost contributions. 

Regulatory/compliance planning 
Map permitting timeline, export certification requirements (e.g., RFNBO), safety & storage/transport regulations. Include a buffer for delays. 

Supply chain/manufacturing strategy 
Determine whether to import or locally manufacture electrolyser stacks. Evaluate vendor lead‑times, spare‑parts availability, service network, and local content preferential schemes. 

Logistics & export/industrial integration 
For export or hydrogen carrier use, plan ammonia or hydrogen shipping, bunkering, and port terminal infrastructure. For domestic use, integrate with industrial clusters (fertiliser, chemical, steel) and ensure feedstock linkage. 

Risk mitigation & contingency planning 
Create buffer timelines, backup renewable supply or grid, backup water/desalination options, and staged ramp‑up. Plan for slower utilisation and higher OPEX scenarios. 

Long‑term operations & adaptability 
Plan for stack degradation, equipment replacement, performance monitoring, and future upgrade path. Maintain flexibility to pivot if offtake changes or export market dynamics shift. 

How Product Fit Supports Long‑Term Value for Hydrogen Projects in India

When product fit is correctly aligned with site, market and scale, the benefits for Hydrogen Projects in India are considerable: 

• Higher utilisation rates: matching power and site resources ensures better output and lower cost per kg of hydrogen. 

• Lower operational risk: technology built for local conditions will require fewer unplanned shutdowns or maintenance. 

• Faster deployment and ramp‑up: modular/containerised options allow earlier revenue generation and validated operations. 

• Scalable growth: a system designed with an upgrade path avoids a major rebuild for expansion, reducing future CAPEX shock. 

• Lower life‑cycle OPEX: through efficient technology, local supply chain, matched logistics and realistic assumptions. 

• Better commercial outcomes: aligning cost structure and market demand improves project bankability and partner attractiveness. 

In the Indian scenario, where power cost, infrastructure readiness, regulatory clarity, logistics and offtake markets are still developing, getting product fit right is arguably the most effective form of risk reduction. 

Governance & Stakeholder Alignment 

Technical and commercial plans matter, but governance and stakeholder coordination ensure execution succeeds. Without aligning with state agencies, landowners, port authorities, renewable suppliers and downstream users, even the best‑designed project can stall. 

Key practices: 

• Early engagement with regulators and state agencies for land, water, grid, and export approvals. 

• Secure renewable power and offtake contracts before committing to major CAPEX. 

• Define clear roles/responsibilities among developers, technology vendors, EPC contractors, and local partners. 

• Allocate risks in contracts. Who should bear the costs of delays, cost overrun, and regulatory changes? 

• Monitor stakeholder expectations and keep communication transparent. 

Adaptability & Future‑Proofing 

Hydrogen technology and markets are evolving rapidly. Smart‑planning means designing change, not just today’s economics, but tomorrow’s scale, markets, and regulations. 

Considerations: 

• Choose vendor solutions that support upgrade paths (e.g., newer stacks, higher current density). 

• Layout and civil works should allow capacity expansion without major reconstruction. 

• Monitor export certification regimes, hydrogen carrier markets (ammonia, methanol) and adjust business model accordingly. 

• Build in optionality, such as a domestic feedstock supply switch vs an export pivot. 

• Maintain data‑collection, performance monitoring, and operations capability to refine cost models and expand intelligently. 

Looking Ahead: What Project Teams Should Do 

If you are involved in planning hydrogen projects in India, whether as an R&D lead, procurement manager or engineering executive, here are actionable steps: 

• Start with a clear offtake strategy: domestic industrial use, export, feedstock substitution, or hydrogen carrier. 

• Conduct a site audit early: power tariffs, renewable resource map, water availability and quality, land/permitting risk, logistics. 

• Engage technology vendors and perform product‑fit comparison: examine their technology maturity, modularity, service support, and Indian manufacturing linkage. 

• Develop a phased build plan: starting capacity, future expansion, contingency triggers. 

• Run cost‑life‑cycle model: CAPEX + OPEX over 20‑25 years, sensitivity to key variables (power cost, utilisation, degradation). 

• Map out governance & stakeholder plan: land, water, grid, offtake, export logistics, local partnerships. 

• Ensure product choice aligns with the Indian context: containerised vs indoor, modular vs large scale, local service infrastructure. 

• Built-in adaptability: allows expansion, future technology updates, and alternative offtake routes. 

• Secure long‑term partnerships: vendors, local EPC, logistics, and industrial offtake. A partner who can deliver technology and local insight adds value. 

• Partnering with experienced technology providers like Stargate Hydrogen helps Indian developers reduce execution, technology, and cost risk. 

• Stargate Hydrogen offers modular, containerised alkaline electrolysers tailored for India’s phased, scale-sensitive development approach. 

• Monitor performance and revise assumptions as the plant comes online: real‑world data will refine utilisation, cost curves, and maintenance schedules. 

Why Stargate Hydrogen Is the Ideal Partner for Hydrogen Projects in India 

For companies planning to enter or expand within the Indian hydrogen market, Stargate Hydrogen stands out as an ideal partner, not only as a technology supplier but as a strategic collaborator. 

Technical Fit for Indian Conditions 

Stargate Hydrogen’s alkaline electrolysers are engineered for robustness and efficiency. They perform reliably under India’s temperature extremes and can handle renewable power fluctuations. With fewer sensitive components and simplified maintenance, they provide consistent uptime and predictable OPEX, essential for profitability in cost‑sensitive markets. 

Modular Growth for a Phased Market 

India’s hydrogen market will expand in phases, driven first by pilot projects, then by industrial offtake and exports. Stargate Hydrogen’s modular systems align perfectly with this reality. Developers can commission smaller blocks now and expand later without redesigning the entire facility. 

This phased‑investment approach lowers risk for both financiers and EPCs, enabling better capital allocation and quicker project payback. 

Planning and Execution Support 

Unlike many equipment providers, Stargate Hydrogen also assists developers in early‑stage project planning, including sizing, site layout, and lifecycle cost modelling. Their engineering teams collaborate on system design, integration with renewables, and scalability studies. 

“Our customers don’t just buy equipment; they buy certainty,” says Marko Virkebau, CEO of Stargate Hydrogen. “We help them plan their projects for reliability, scalability, and long‑term efficiency.” 

Alignment with India’s Policy and Market Direction 

Stargate’s technology roadmap supports India’s National Green Hydrogen Mission goals. Their alkaline systems are RFNBO‑compatible, enabling export‑ready certification for projects targeting European markets. This helps Indian companies to future‑proof their investments and tap into global supply chains. 

Proven Track Record and Manufacturing Strength 

With a new 140 MW electrolyser manufacturing facility in Tallinn (expandable to 1 GW), Stargate combines European engineering with scalable global supply capacity. Their delivery pipeline already includes hydrogen projects in India, the Middle East, and Europe, giving them both credibility and experience in multi‑regional deployment. 

In short, Stargate Hydrogen isn’t just a vendor; it’s a technology partner that supports Indian developers in de‑risking projects through intelligent design, modular scaling, and operational planning.  

Conclusion 

Hydrogen projects in India offer realistic commercial and decarbonisation opportunities, but the road is complex. The difference between success and setback often lies not in ambition, but in the alignment of planning, product fit, and execution. By selecting the right technology, sizing your system appropriately, choosing the right deployment format, modelling both CAPEX and OPEX, and embedding your plan in the local Indian context (resources, regulation, logistics), you can significantly reduce project risk. 

Think of it this way: a well‑planned project is built to perform, not just to be built. For hydrogen projects in India, that distinction matters more than ever.