Daybreak - China built the solar energy empire. India’s building the green hydrogen rebellion

Episode Date: April 6, 2025

Despite the recent upheaval in clean tech efforts, governments around the world are investing billions into green hydrogen. Analysts are calling it the missing piece in the clean energy puzzle, especially for industries that can’t run just on batteries or solar power.But the future of green hydrogen may not be decided in Silicon Valley or Europe or even China. It might come from a factory just outside Bengaluru where a little-known American startup called Ohmium is building sleek, modular machines, the size of a fridge. These are designed to split water into hydrogen and oxygen using nothing but renewable electricity.Ohmium’s unique technology called PEM (proton exchange membrane) electrolysers—are compact, scalable, and fast becoming the system of choice for green hydrogen production. But can India really lead the global green hydrogen race and will Ohmium be the company to take us there?Tune in.Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.

Hi, this is Rohan Dharma Kumar. If you've heard any of the Ken's podcasts, you've probably heard me, my interruptions, my analogies, and my contrarian takes on most topics. And you might rightly be wondering why am I interrupting this episode too. It's for a special announcement. For the last few months, I and Sita Ramon Ganeshan, my colleague and the Ken's deputy editor, have been working on an ambitious new podcast. It's called Intermission.

We want to tell the same. secret sauce stories of India's greatest companies. Stories of how they were born, how they fought to survive, how they build their organizations and culture, how they managed to innovate and thrive over decades, and most importantly, how they're poised today. To do that, Sita and I have been reading books, poring over reports, going through financial statements, digging up archives, and talking to dozens of people. And if that wasn't enough, we also decided to throw in video into.

to the mix. Yes, you heard that right. Intermission has also had to find its footing in the world of multi-camera shoots in professional studios, laborious editing, and extensive post-production. Sita and I are still reeling from the intensity of our first studio recording. Intermission launches on March 23rd. To get an alert, as soon as we release our first episode, please follow Intermission on Spotify and Apple Podcast. or subscribe to the Ken's YouTube channel. You can find all of the links at the ken.com slash I am. With that, back to your episode.

Clean hydrogen seems to be having its moment, despite Donald Trump. Governments around the world are putting in tens of billions of dollars into it. Even oil companies are making bets. And analysts are calling it the missing piece in the clean energy puzzle, especially for industries that cannot run on batteries, sunshine alone. But the future of green hydrogen may not be decided in Silicon Valley or even Beijing for that matter. It might come down to what is happening in a factory just outside of Bangalore India where a little known American startup called Omium is building sleek modular

machines, the size of a fridge designed to split water into hydrogen and oxygen using nothing but renewable electricity. Omium's unique technology called PEM or proton exchange membrane electrolyzers are compact, scalable and fast becoming the system of choice for green hydrogen production. But what is even more surprising is where they're being built, who is buying them and how quickly the market is changing. India, which has long been seen as a follower in clean tech manufacturing, is now positioning itself as a global hub for electrolyzer production, with Omium leading.

the charge. Because India has the perfect mix of sun, wind and manufacturing muscle, which might just give us a second chance at becoming energy independent. So this is a story about the race to decarbonize sectors like steel, fertilizer and shipping, and the coming together of American innovation, Indian manufacturing and a fuel that could change everything. But can India really lead the global green hydrogen race? And will Omi Amiomian? become the company to take it there. Welcome to Daybreak, a business podcast from the Ken. I'm your host, Nick Das Sharma, and I don't chase the news cycle.

Instead, every day of the week, my colleague Rahal Philposed and I will come to you with one business story that is worth understanding and worth your time. Today is Monday, the 7th of April. Before we dive into Omium, let's go back to the basics a little bit. Hydrogen is the most abundant element in the universe. It is also a clean fuel. So when you burn it, you get water, not smoke. But here's a catch.

Most of the hydrogen that we use today called grey hydrogen comes from fossil fuels like natural gas. And this process releases a ton of carbon dioxide. Green hydrogen, meanwhile, is the same stuff, but it is made using renewable energy and water. It is clean in and out. And here's how it works. You pass electricity through water in a process called electrolysis. This splits the water into hydrogen and oxygen. If the electricity comes from a solar or wind power, the hydrogen is 100% green.

Sounds perfect, right? But there is a problem because it is expensive, really expensive. Green hydrogen can cost anywhere from $5 to $7 per kilogram. Grey hydrogen, on the other hand, costs just a little more than $1. So the challenge is how do you bring the cost down? That is where technology and scale come in. And that's where Omium enters the picture. Omium is an American startup, but it is betting big on India.

In 2021, they set up a sprawling gigafactory on 8 acres of land near Bangalore in a place called Dodda Balapur. My colleague Shrishdi Acher, who visited the factory, says that from the outside it looks like any other modern factory. But inside, it is building the future. PEM electrolyzers. These machines convert water into green hydrogen. Unlike the bulkier and older alkaline electrolyzers, PEM or proton exchange membrane electrolyzers are compact, modular and way more efficient. Here's what Rasul Agha Tehrani, the company's chief marketing and strategy officer, told my colleague Shristi. And I'm quoting, we picked a form factor similar to a car. Why? Because the tools and the talent to build cars already exists in India. So each electrolyzer is like a cabinet.

Seven cabinets make up what they call an island. And depending on your needs, you can add more or fewer units just like building blocks. So it is simple, scalable and smart. To find out why India is the perfect place to do this, stay tuned. You see, as it turns out, India checks all the right boxes. Sunshine, yes, wind power, plenty. A booming auto parts industry, yes, especially in the Chennai and Bangalore Belt. And more importantly, India has not yet locked into one kind of hydrogen technology. Like China, for example, leads in alkaline electrolyzers. But the green hydrogen game is still wide open. India also has a massive $2 billion subsidy program for green hydrogen. And that is helping big players like NTPC and M-Stele launch projects that were unthinkable just a few years ago.

Paul Dianora, Omium's chief commercial officer, told us, and I'm quoting, in 2022 projects were just 10 to 20 megawatts. Now, we are seeing 100 to 800 megawatt projects being announced. This is exponential growth. So now, let us talk about the tech a little bit. PEM electrolyzers are pricier than alkaline ones. mostly because they use iridium, one of Earth's rarest metals. But PEM also has its advantages.

It is smaller, it is more efficient and it is faster to start and stop, which makes it perfect for pairing with renewable power that is intermittent by nature. Omium's current model uses 49 kilowatt hours of electricity to produce 1 kilogram of hydrogen, and that is already 5 to 6 kilowatts better than alkaline. systems. And their earlier product was 56 kilowatt hours. So you see, they've already made major efficiency gains and it is only going to get better. Their next gen product, Mark 2, which is set to launch this year, promises even more efficiency, translating to lower hydrogen costs. But despite all this promise of technology, the challenges remain, which is cost.

Until green hydrogen gets down to about $1 to $2 per kg, it is going to be tough to compete with fossil fuels. And that is why Omium is focusing on markets where there is both policy pressure and infrastructure in place. Take Europe, for example. The carbon border adjustment mechanism punishes companies that import carbon-intensive goods. And that makes green hydrogen more attractive. Japan, South Korea and Singapore are also pushing to source green hydrogen. from countries like India, which is why for Omium, this is a huge opportunity. They've already replaced competitors in at least four North American projects,

according to their executives. They expect two-thirds of their revenue to come from Europe and India by 2026. But Omium is not trying to be everything to everyone. They are betting on flexibility, efficiency and a modular design that can scale from 5 to 500 megawatts. without reinventing the wheel. They are also leaning into energy independence. Dianora says that India's power supply, while improving, is still unpredictable.

Green hydrogen can act as backup fuel for data centers, refineries and fertilizer plants. And here is a kicker. Omium system can connect directly to solar panels, bypassing the grid entirely. And that can shave 7 to 10% of the initial investment, and improve overall efficiency by another 5 to 7%, which is huge. So will Omium succeed? The company raised $250 million last year. It is working on massive deals with Indian giants like NTPC,

and its second-gen product is just months away. But the real test is going to be scaling up. You see, green hydrogen is still in its infancy. But like solo panels 15 years ago, the tipping point could come very soon. Agha Thirani actually puts it best. He says in solar, mono cells were once expensive. Now they're everywhere.

We think PEM will follow the same path. So if he's right, Omium could be at the center of a clean energy breakthrough. And India, it might just go from importer to exporter of the world's cleanest fuel. That is all for today. Thank you for tuning in. and if you enjoyed this episode, please do share it with people who you think are curious about the future of clean energy.