Electrolyser Wars: Will China’s Green Hydrogen Push Reshape Global Energy Markets—and Indian Stocks?

China is emerging as the powerhouse of the global green hydrogen revolution. By ramping up electrolyser manufacturing at record speed, it’s driving down costs and redrawing the global hydrogen supply map.

For India, still in the early stages of its National Green Hydrogen Mission, this shift could influence project costs, technology choices, and the performance of listed companies in the energy, metals, and renewables space.

The global race for green hydrogen dominance has begun—and it’s not just about clean energy anymore, but about shaping the future of global energy economics.

China’s Lead in Electrolyser Manufacturing

China currently accounts for around 60% of global electrolyser manufacturing capacity, driven by its strength in pressurised alkaline (ALK) technology and vertically integrated supply chains.

Chinese ALK electrolyser systems come at a total installed cost of about $1,900 per kilowatt (kW)—around 20–25% cheaper than European and North American systems, where ALK costs about $2,300 per kW and PEM (Proton Exchange Membrane) systems around $2,550 per kW.

China’s cost advantage stems from its extensive experience with electrolysis, advanced large-scale automation, and the entry of major solar and wind equipment manufacturers into the hydrogen production sector.

The Growth of Proton Exchange Membrane Electrolysers

Globally, PEM (Proton Exchange Membrane) electrolysers are experiencing rapid growth—the market is valued at $1.4 billion in 2024 and is expected to reach $4.3 billion by 2025, growing at a strong 30.1% CAGR through 2034. These systems are preferred because they produce high-purity hydrogen, respond quickly to renewable energy inputs, and are well-suited for industries such as ammonia production, refining, and steel production.

India’s Green Hydrogen Momentum

India’s response to the global green hydrogen shift is taking shape through multiple initiatives:

• National Green Hydrogen Mission (NGHM)
  

Announced in 2023, the mission targets 5 million metric tonnes (MMT) of green hydrogen production annually by 2030, supported by ₹17,490 crore (~$2.1 billion) in investments.

• SIGHT Initiative
  

Under the SIGHT (Strategic Interventions for Green Hydrogen Transition) initiative, India has floated tenders for 4.5 GW of electrolyser capacity—1.5 GW in Tranche 1 and 3 GW in Tranche 2. While China already produces over 39 GW annually, India’s incentive-linked approach focuses on boosting domestic innovation and reducing costs.

• Falling Production Costs
  

India’s Levelised Cost of Hydrogen (LCOH) is projected to fall to $1.8–$2.3/kg by 2030, supported by cheaper renewable power and local electrolyser scaling.

Pilot projects in Gujarat and Odisha are expected to post $3.20–$3.60/kg by 2025. In comparison, China’s LCOH is around $4.0–$5.0/kg, driven higher by coal-heavy electricity.

• Hydrogen Hubs in the East and the North
  

India is developing port-based hydrogen hubs at Kandla and Paradip to export green ammonia and methanol to Europe, Japan, and South Korea.

• Cleaner Power Mix
  

Over 26% of India’s electricity now comes from renewable energy, reducing the carbon intensity of hydrogen production. China’s grid, in contrast, still relies on coal for over 60% of its power. India’s Inter-State Transmission System (ISTS) waiver for renewable-powered hydrogen projects further strengthens its global competitiveness.

• Hydrogen Infrastructure
  

China has more than 540 hydrogen refuelling stations as of 2025. However, India is also slowly climbing the hydrogen refuelling station ladder. It already has its’ first green hydrogen refueling station in Leh, the designation of three major ports as Green Hydrogen Hubs (Deendayal, V.O. Chidambaranar, and Paradip), and a 600 crore pilot project to build hydrogen fuelling stations along 10 national highway stretches. More such projects have been envisaged under the SIGHT and NGHM.

Listed Companies in Focus

Many Indian companies are starting to make a significant impact in the green hydrogen economy in India. Reliance Industries is going to establish an electrolyser manufacturing facility of significant scale, along with a 30 GWh battery Gigafactory to develop battery capacity. In addition to this, it has partnered with Nel Hydrogen, confirming its alignment with the advanced alkaline electrolyser technologies offered by that company and confirming Reliance’s presence in the clean energy ecosystem.

Larsen & Toubro (LT) is another company working in the green hydrogen economy. L&T Energy Green Tech Ltd (LTEGL), a subsidiary of L&T, has flagged projects with the potential to produce 90 kilotonnes per year of green hydrogen, supported by the central and state government under the SIGHT programme. Meanwhile, major public sector entities including Indian Oil Corporation (IOCL) and Bharat Petroleum (BPCL) are taking steps to enable production pathways for hydrogen, by considering hydrogen indicative applications in their refining and mobility businesses, in the context of their decarbonising strategic intent. In parallel, renewable power leaders like Adani Green Energy and Tata Power have joined the effort by broadening their portfolio and supplying clean electricity for hydrogen production, creating a holistic link between renewable power and hydrogen production. Together, these initiatives illustrate how India’s leading industrial and energy enterprises align themselves with the international transition towards a low-carbon hydrogen-based future.

Outlook

China’s cost leadership could keep global equipment prices under pressure, but India’s strong policy framework, renewable energy mix, and port-led infrastructure provide a favourable foundation for growth.

As both nations scale up production and technology capabilities, the global hydrogen market is likely to see competitive shifts—with Indian companies playing a growing role in clean energy supply chains and export opportunities.

Sources

Press Information Bureau, Government of India
Global Current News
Electric Hydrogen
Jinhong Gas Co., Ltd.
Renewables Now
Hydrogen Newsletter
India Energy Storage Alliance
RMI
Global Market Insights