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Major Firms Secure Incentives in India's Electrolyser Manufacturing Push

Asia Manufacturing Review Team | Tuesday, 16 January 2024

 Asia Manufacturing Review Team

Reliance Electrolyser Manufacturing, Jindal India, and John Cockerill Greenko Hydrogen Solutions have secured incentives as successful bidders among six firms chosen to establish electrolyser manufacturing facilities, a crucial element in green hydrogen production. These bids were made in response to a tender from the Solar Energy Corporation of India (SECI), which invited participants to set up a 1.5GW manufacturing capacity for electrolysers.

As revealed in a SECI statement issued on January 12, 2024, Reliance Electrolyser Manufacturing Ltd secured incentives amounting to Rs 444 crore for establishing a 300MW manufacturing capacity for electrolysers. Similarly, John Cockerill Greenko Hydrogen Solutions Private Ltd and Jindal India Ltd each received incentives of Rs 444 crore for setting up 300MW manufacturing capacities for electrolysers.

Ohmium Operations Pvt Ltd secured Rs 202.76 crore in incentives for 137MW, while Advait Infratech Ltd (in a consortium with Rajesh Power Service Private Ltd) will receive incentives of Rs 148 crore for 100MW. L&T Electrolysers Ltd secured incentives of Rs 93.24 crore for 63MW. In total, these six firms secured incentives amounting to Rs 1,776 crore for 1,200MW under the category 'Bucket-1: Electrolyser manufacturing capacity based on any stack technology.'

Out of 14 firms whose bids qualified for incentives, eight firms were not allocated any capacity under this scheme. These include Matrix Gas and Renewables in consortium with Gensol Engineering, HHP Seven, ACME Cleantech Solutions, Adani New Industries, Waaree Energies, Avaada Electrolyser, Green H2 Network India, and Hild Electric.

Under 'Bucket-2: Electrolyser manufacturing capacity based on indigenously developed stack technology,' Homihydrogen and Adani New Industries emerged as successful bidders. Homihydrogen will receive incentives of Rs 150.22 crore for establishing 101.5MW of electrolyser manufacturing capacity, while Adani New Industries secured Rs 293.78 crore for 198.5MW.

In this category, seven firms were in contention, and five were not allocated incentives under the scheme, including Livehy Energy, C Doctor And Company, Pratishna Engineers, Bharat Heavy Electricals Ltd, and Newtrace.

In January 2023, the Union Cabinet approved the National Green Hydrogen Mission (NGHM) with an outlay of Rs 19,744 crore, aiming to position India as a global hub for manufacturing green hydrogen. The mission envisions the development of 5 million metric tonnes per annum of green hydrogen production capacity by 2030 and includes the establishment of two green hydrogen hubs in the initial phase at major ports—Deendayal, Paradip, and V O Chidambaranar (Tuticorin) Ports—identified by the Ministry of Ports, Shipping, and Waterways.