By Phil Caldwell, CEO of Ceres, and Ashish Bhandari, Managing Director and CEO of Thermax.

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Across the globe, the push for industrial decarbonisation has shifted from ambition to urgent necessity.

According to the IEA, industrial sectors collectively account for roughly 25% of global greenhouse gas emissions, and in heavy industry – from steelmaking to fertiliser production – hydrogen is emerging as one of the most promising solutions.

Data from Bloomberg New Energy Finance also shows that industrial hydrogen off-takers are increasingly concentrated in steel, ammonia, methanol, and refining: sectors that are difficult to electrify but suitable for hydrogen adoption.

In this global race to decarbonise, India occupies a unique position – one of both urgency and opportunity.

India’s industrial decarbonisation challenge

India’s industrial economy is expanding at a remarkable pace. The nation is not only targeting ambitious GDP growth rates (6.5% in 2024–25, the highest among major economies) but is also seeing a historic shift in global manufacturing supply chains. India is increasingly seen as the next manufacturing hub that can compete with China. This growth, however, comes with a carbon cost – unless the energy systems underpinning industrial production are transformed.

India is highly focused on decarbonisation, with its National Green Hydrogen Mission serving as a key pillar of the broader Atmanirbhar Bharat (self-reliant India) strategy—aimed at reducing reliance on imported fossil fuels, strengthening energy independence, and decarbonising hard-to-abate sectors such as heavy industry.

Launched in 2023, the mission targets the production of five million metric tonnes of green hydrogen annually by 2030, supported by investments in renewable energy capacity, electrolyser manufacturing and hydrogen infrastructure.

At the state level, progressive policies are amplifying this push – states like Gujarat, Tamil Nadu, and Odisha are offering land, fiscal incentives and port infrastructure to attract green hydrogen and ammonia projects, while Rajasthan and Karnataka are leveraging abundant solar and wind resources for low-cost hydrogen production.

Agriculture remains a bedrock of India’s economy, and hydrogen has a crucial role to play. Fertiliser production, particularly ammonia-based fertilisers, is currently highly carbon-intensive. Green hydrogen offers a direct pathway to low-carbon fertiliser manufacturing, which would strengthen India’s food security while cutting emissions.

Steel, often referred to as the backbone of industrial economies, is another strategic focus. India is the world’s second-largest steel producer, and demand is projected to surge as infrastructure, housing, and manufacturing capacity expand. According to the World Steel Association, demand in India could grow by 8% over 2024 and 2025.

The traditional blast furnace production method is one of the most carbon-heavy processes in the industry. Replacing coal-based processes with hydrogen-based direct reduced iron (DRI) could dramatically cut emissions, positioning India as a leader in green steel.

Applying SOEC to industry

This is where the Thermax–Ceres partnership comes in – a collaboration designed to address the industrial decarbonisation challenge at scale.

Thermax, a leading energy and environment solutions provider globally, headquartered in India, has joined forces with UK-based Ceres, a pioneer in solid oxide cell technology. The partnership focuses on licensing Ceres’ solid oxide electrolysis cell (SOEC) technology for deployment in India and beyond. The history of this collaboration is rooted in a shared vision: to unlock hydrogen’s potential in industrial processes.

Operating at high temperatures, SOECs can integrate directly with industrial waste heat streams, improving efficiency and lowering costs. Under the partnership, Thermax will manufacture SOEC systems in India, leveraging its industrial footprint, market knowledge, and commercial relationships to bring down costs and accelerate deployment, while building a domestic supply chain.

Aligned with India’s National Green Hydrogen Mission, the partnership aims to scale efficient, cost-effective hydrogen production for heavy industry. This will accelerate India’s energy transition and decarbonise hard-to-abate industries.

First-of-a-kind demonstrator

While the Thermax-Ceres partnership is still in its early phases, Ceres announced earlier this year that its first megawatt SOEC demonstrator system, at Shell’s Technology Centre in Bengaluru, India, had started to produce hydrogen. This project showcases how renewable power, electrolysis and local industrial demand can be integrated effectively.

These projects are proof that hydrogen production at scale is technically and commercially viable in India. The Thermax–Ceres SOEC systems will build on this momentum, enabling higher efficiency production and making hydrogen more competitive in cost-sensitive industrial sectors.

India’s global hydrogen opportunity

The benefits of the Thermax–Ceres collaboration could extend far beyond India’s domestic market. If manufacturing of SOECs and associated balance-of-plant systems is scaled efficiently, India could become a global exporter of both hydrogen technology and products such as fertiliser and steel, enabled by low-cost green hydrogen.

India’s abundant solar resources offer a significant competitive advantage. Low-cost solar electricity could underpin some of the world’s most affordable green hydrogen production, especially in regions with strong solar irradiation and land availability. With the right infrastructure, this hydrogen could be exported to markets in Europe, Japan and South Korea, where decarbonisation targets are driving demand.

A strategic path forward

For India, the hydrogen economy is more than just an environmental imperative – it is a strategic opportunity. Developing domestic manufacturing of SOEC systems, securing leadership in low-cost hydrogen production and positioning as a global exporter could bring significant economic benefits. The ripple effects would include job creation, technology transfer and greater energy security.

Building a hydrogen superpower

Industrial decarbonisation is one of the defining challenges of our era, and hydrogen is emerging as the solution that bridges the gap between economic growth and environmental responsibility.

The Thermax–Ceres partnership represents a pivotal step in this journey. By bringing world-leading SOEC technology into large-scale Indian manufacturing and by targeting the most carbon-intensive industrial sectors first, the collaboration is set to accelerate India’s hydrogen economy.

If successful, this effort will not only help decarbonise India’s industrial base but could also elevate the country to the status of a leader in exporting both hydrogen technologies and low-carbon products.

In the decades ahead, the world will look for leaders in industrial decarbonisation. Thanks to partnerships like Thermax and Ceres, India is positioning itself to be one of them.