What is a hydrogen peroxide project report?
A hydrogen peroxide project report is a detailed project report (DPR) for a plant that makes hydrogen peroxide solution by the anthraquinone autoxidation process. It sets out the process, hydrogen supply, machinery, raw materials, approvals, project cost, means of finance, five-year projections, DSCR and break-even that investors and lenders review before funding.
Chemical companies, chlor-alkali producers with spare hydrogen and new investors use it to size the plant, while banks use it to judge whether the project can repay its loans.
Also known as: project report on hydrogen peroxide, hydrogen peroxide manufacturing plant project report, hydrogen peroxide business plan, H2O2 plant DPR, hydrogen peroxide feasibility report.
Hydrogen peroxide manufacturing plant cost and economics
Our sample report models a plant of 37 metric tonnes (MT) per day running 330 days a year, or 12,210 MT per year of solution as sold. It starts at 60% of capacity, reaches 80% in Year 5 and sells at ₹25,300 per MT before GST.
| Land and site development | 115.89 |
|---|---|
| Building and civil works | 242.75 |
| Plant and machinery | 623.39 |
| Other fixed assets | 70.75 |
| Contingencies | 43.31 |
| Preliminary and pre-operative | 27.40 |
| Working capital margin | 69.96 |
| Total | 1,193.45 |
| Promoter's contribution (25%) | 298.36 |
|---|---|
| Term loan from bank (75%) | 895.09 |
| Cash credit limit (separate) | 209.89 |
| Total project cost | 1,193.45 |
Scale matters in this product: the sample is a compact plant chosen to show the report format. Many Indian AO plants are far larger, and cost per tonne falls as capacity rises, so the capacity decision should come before any machinery quotation.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. Lowest DSCR in any year is 1.96. All figures are illustrative.
Hydrogen peroxide manufacturing process (anthraquinone route)
The anthraquinone autoxidation (AO) process runs as a closed loop. A working solution carries the reaction from step to step and returns to the start, so most of it is reused for years.
- Working solution preparation
2-Ethylanthraquinone is dissolved in a blend of an aromatic solvent and a polar solvent that can each hold one form of the quinone.
- Hydrogenation
Hydrogen reacts with the solution over a palladium catalyst at mild temperature and low pressure, giving anthrahydroquinone.
- Catalyst filtration
Fine filters hold back the catalyst, because palladium carried forward breaks down hydrogen peroxide later in the loop.
- Oxidation
Compressed air bubbles through oxidation towers; the hydroquinone turns back into quinone and releases hydrogen peroxide without a catalyst.
- Extraction
Demineralised water flows counter-current in an extraction column and takes the peroxide out as a crude aqueous solution.
- Purification and concentration
Organic traces are removed and the solution is concentrated under vacuum to 50% or 60% strength.
- Stabilisation and packing
Stabilisers are dosed and the product goes to aluminium or stainless steel tanks, vented drums, carboys or road tankers.
Technology choices that shape a hydrogen peroxide plant
Process licensors offer the AO route in several forms. These four decisions change the project cost and running cost more than any other.
| Hydrogen source | By-product hydrogen from a chlor-alkali plant next door, a steam reformer on site, or bought-in gas. The cheapest reliable source usually decides where the plant is built. |
|---|---|
| Hydrogenation reactor | Fixed-bed reactors keep the catalyst in place; slurry or fluidised-bed designs need tighter catalyst filtration. The choice affects palladium losses and maintenance. |
| Product strength | Most trade is in 50% solution. Making 60% or 70% grades needs more distillation capacity and stricter storage, but saves freight per tonne of active peroxide. |
| Grade | Technical grade serves textiles, paper and effluent treatment. Food, aseptic-packaging and electronic grades need extra purification and a cleaner filling line. |
Hydrogen first: a project that starts with machinery quotations and treats hydrogen as a bought item often looks weak on paper. Fix the hydrogen source and its price before sizing the plant.
Raw materials for hydrogen peroxide
In theory one tonne of 100% hydrogen peroxide needs about 59 kg of hydrogen. In our sample, raw materials are 44.2% of Year 3 sales, and hydrogen alone is 58% of that bill.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Hydrogen gas | 58% | 554.34 |
| 2-Ethylanthraquinone | 12% | 114.69 |
| Working solution solvents | 10% | 95.57 |
| Palladium catalyst | 9% | 86.02 |
| Activated alumina | 6% | 57.34 |
| Stabilisers and phosphoric acid | 5% | 47.79 |
| Total | 100% | 955.75 |
Anthraquinone, solvent, catalyst and alumina are make-up quantities that replace what degrades or is lost in each cycle.
Machinery for a hydrogen peroxide plant
The hydrogenator with its catalyst filters is the costliest item in the sample, followed by the oxidation towers and air compressors.
| Equipment | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Hydrogenator with catalyst filters | Reacts hydrogen with the working solution | 112.21 |
| Oxidation towers with air compressors | Forms the peroxide with air | 99.74 |
| Vacuum distillation and concentration unit | Raises strength to 50% or 60% | 87.27 |
| Extraction column and coalescers | Separates peroxide into water | 74.81 |
| Hydrogen compression and purification system | Delivers clean, dry hydrogen | 62.34 |
| Storage tanks and drum filling system | Stores and dispatches product | 62.34 |
| Working solution regeneration system | Restores degraded quinones on alumina | 49.87 |
| DCS, instrumentation and safety interlocks | Controls and trips the plant safely | 43.64 |
| Cooling tower and chilling plant | Removes reaction heat | 31.17 |
| Total plant and machinery | 623.39 | |
Costs are the sample report's estimates. Wetted parts in contact with peroxide are usually passivated aluminium or stainless steel; get licensor and vendor quotations before you finalise.
Utilities and manpower for a hydrogen peroxide plant
| Power and fuel | ₹125.89 lakh in Year 3 of the sample, 5.8% of sales; air compressors and vacuum systems are the main loads |
|---|---|
| Demineralised water | Needed for extraction, so a DM water plant sized to the product output is part of the utilities |
| Cooling water and chilling | Hydrogenation and oxidation both release heat that must be removed to hold reaction temperatures |
| Nitrogen | Used for inerting and purging hydrogen and solvent systems before start-up and maintenance |
| Manpower | 68 people in the sample: 10 in management and supervision, 24 skilled operators and 34 semi-skilled and unskilled workers |
Licences and approvals for a hydrogen peroxide plant
Beyond Udyam, GST, factory and fire approvals, these product-specific rules apply. Each was checked on the official source in October 2026.
| BIS certification | Product must meet IS 2080:2021 and carry the Standard Mark; the Quality Control Order is shown as implemented from 13 March 2022 |
|---|---|
| Pollution board consent | Consent to establish and operate; "chlorates, per-chlorates and peroxides" appear on State Pollution Control Board Red category lists |
| Hazardous chemicals | MSIHC Rules, 1989 list hydrogen peroxide in Schedule 1 and hydrogen in Schedule 3, with 2 and 50 tonne thresholds for added duties |
| Compressed gas storage | A PESO licence under the SMPV(U) Rules for storing compressed hydrogen in pressure vessels |
| GST classification | HSN 2847; 5% for medicinal grade and 18% for other grades under Notification 9/2025-Integrated Tax (Rate) |
Rules and categories vary by state and change over time. Confirm each with the authority before applying.
Who buys hydrogen peroxide in India?
Hydrogen peroxide is valued as an oxidiser that breaks down into water and oxygen. Textile processors use it to bleach cotton before dyeing, and paper mills use it in chlorine-free bleaching stages.
Most volume moves as 50% solution in road tankers and drums. Buyers expect steady supply and consistent stability, so a plant that misses dispatches loses the account quickly.
- Textile processing and dyeing houses
- Pulp and paper mills
- Water and effluent treatment companies
- Chemical and pharmaceutical manufacturers
- Mining and metal processing units
- Chemical traders and distributors
Mistakes that weaken a hydrogen peroxide project report
- Mixing up 100% and 50% basis
Plant capacity is often quoted as 100% peroxide while sales are in 50% solution. Mixing the two doubles or halves revenue.
- No firm hydrogen supply
Hydrogen is the largest cost. Without a supply agreement or a costed reformer, lenders cannot rely on the raw material figures.
- Ignoring working solution losses
Anthraquinone degrades and catalyst ages each cycle. Leaving out make-up chemicals and regeneration understates running cost.
- Skipping storage and safety design
Peroxide decomposes if contaminated. Vented tanks, compatible materials and hydrogen safety systems must be in the budget, not added later.
- Starting sales before the BIS licence
Without the IS 2080 licence the product cannot be sold in India, so the commissioning plan needs time for it.
How NPCS helps you plan a hydrogen peroxide plant
- Capacity and hydrogen planSize the plant around a costed hydrogen source and the grades your buyers want.
- Process and equipment optionsCompare AO process packages, reactor types and concentration steps, with vendor contacts.
- Bank-ready project reportFive-year projections, DSCR, break-even and working capital in the format your lender expects.
- Approvals roadmapBIS, pollution consent, PESO and MSIHC steps mapped to your state and timeline.
NPCS, led by founder Ajay Kumar Gupta, has prepared project reports for chemical plants since 1994, and its client list records 269 assignments in specialty chemicals, including hydrogen peroxide.
What's inside the hydrogen peroxide sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS hydrogen peroxide project reports
These are hydrogen peroxide project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Hydrogen Peroxide (50% Concentrate) | 2000 Ltrs/Day | ₹1 crore | 63.4% | 44% | Get this report |
| Hydrogen Peroxide | 1440 MT/Year | ₹2.87 crore | 43% | 53% | Get this report |
| Hydrogen Peroxide (By Auto-oxidation Process) | 10 TPD | ₹8.04 crore | 57.8% | 38.7% | Get this report |
| Hydrogen Peroxide | 3000 MT/Annum | ₹13.55 crore | 37% | 47% | Get this report |
| Hydrogen Peroxide (Anthraquinone Autoxidation Process) | 40 MT / Day | ₹38.3 crore | 18% | 40% | Get this report |
| Hydrogen Peroxide | 12,000 MT per annum | ₹57.37 crore | 25% | 34% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Hydrogen Peroxide project report: frequently asked questions
How much does it cost to set up a hydrogen peroxide plant in India?
Cost depends mostly on capacity, the hydrogen source and the grade you make. Our sample report models a compact 37 MT per day plant at ₹1,193 lakh. Commercial plants are often far larger: Gujarat Alkalies estimated ₹143.20 crore for a 14,000 MT per year plant (100% basis) at Dahej, commissioned in 2018. Your report works out the cost for your own scale and site.
What raw materials are used to make hydrogen peroxide?
Hydrogen and oxygen from air are the reactants, and demineralised water extracts the product. The process also consumes make-up working solution (2-ethylanthraquinone and solvents), palladium catalyst, activated alumina and stabilisers. In our sample report hydrogen is 58% of raw material cost, so its price and reliability matter more than any other input.
Which process is used to manufacture hydrogen peroxide?
Almost all industrial hydrogen peroxide is made by the anthraquinone autoxidation (AO) process. Hydrogen converts an anthraquinone working solution to its hydroquinone form over a palladium catalyst; air then oxidises it back, releasing hydrogen peroxide, which water extracts. The working solution is reused, and the crude product is purified and concentrated to the grade buyers want.
Is hydrogen peroxide manufacturing profitable?
In our illustrative sample, the plant reaches a 30% return on investment in Year 3, breaks even at about 33% of capacity and pays back in about 2.9 years. Real results depend on the cost of hydrogen, power, freight to buyers, the grade mix and how steadily the plant runs, so the report should test each of these.
Is BIS certification mandatory for hydrogen peroxide?
Yes. Hydrogen peroxide sold in India must conform to IS 2080:2021, the specification for stabilised hydrogen peroxide, and carry the BIS Standard Mark under a Quality Control Order. The BIS standards portal shows the order as notified and implemented from 13 March 2022 (checked October 2026). Plan the BIS licence and in-house lab before commercial sales.
What is the GST rate on hydrogen peroxide?
Hydrogen peroxide falls under HSN heading 2847. Under Notification 9/2025-Integrated Tax (Rate) of 17 September 2025, medicinal grade hydrogen peroxide is taxed at 5%, while other grades fall in the 18% entry for inorganic chemicals. Check the latest notification with your tax adviser, because rates feed into pricing and working capital.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and financing plan.
Sources and references
- IS 2080:2021 Specification for stabilized hydrogen peroxideBureau of Indian Standards, checked Oct 2026
- Chemicals Quality Control OrdersDepartment of Chemicals and Petrochemicals, Government of India, checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate)Central Board of Indirect Taxes and Customs, checked Oct 2026
- List of Red category industriesState Pollution Control Board, Odisha, checked Oct 2026
- Manufacture, Storage and Import of Hazardous Chemical Rules, 1989Punjab Pollution Control Board, checked Oct 2026
- SMPV(U) Rules: frequently asked questionsPetroleum and Explosives Safety Organisation, checked Oct 2026
- Disclosure on commencement of the hydrogen peroxide plant at DahejGujarat Alkalies and Chemicals Ltd (filed with NSE), checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.