From Capex To Service: MNRE's Model 'Electrolyser As A Service' Agreement

The principal obstacle in the adoption of green hydrogen for reduction of carbon emissions has been commercial rather than technological, as industrial users seeking to transition must fund and operate a dedicated electrolyser plant for a term of fifteen years or more. The “Electrolyser as a Service” (EaaS) model addresses this constraint. Under the EaaS model, a technology provider (Service Provider) designs, finances, constructs, owns, operates and maintains an electrolytic hydrogen generation plant (Project) on a build-own-operate basis at the premises of the industrial user (Consumer). The Consumer thereby secures a reliable, on-site supply of green hydrogen without any upfront capital outlay and acquires no title to the Project. Capital expenditure risk is thereby mitigated and converted into a predictable operating cost, while construction, technology and performance risks pass to the party best placed to manage them.