Green Hydrogen And Water Rights: The Hidden Regulatory Approval

Every green hydrogen project in India includes budgets for land, renewable power and electrolyser. Yet very few account for cost of water. Water is the one of the critical inputs that is not owned by the developer. Its access depends upon permission from a State government, amid competing claims from farmers and cities. This article explores the regulatory framework that governs water approvals, and its growing importance among lenders and European offtakers, and how the resulting risks can be managed contractually.

1. Why Water has Become a Legal Question

Chemically, approximately nine litres of pure water are required to produce one kilogram of hydrogen via electrolysis¹. But this is an ideal number since the theoretical requirement does not reflect the real demand of an operating plant. A plant may need additional water for treatment, cooling, electrolyser operation, purification losses, which can increase actual water requirements can on a substantial level. Recent studies