Incentives for Electrolyser Manufacturing: Driving India’s Green Hydrogen Initiative

Several prominent firms, including Reliance Electrolyser Manufacturing and Jindal India, have secured incentives to establish electrolyser manufacturing facilities as part of India’s push towards green hydrogen production. Let’s delve into the details of this significant development.

Bid Selection Process

The Solar Energy Corporation of India (SECI) invited bids for setting up electrolyser manufacturing capacity in response to a tender issued on July 7 last year.

Successful Bidders and Incentives

Reliance Electrolyser Manufacturing Ltd, John Cockerill Greenko Hydrogen Solutions, Jindal India Ltd, Ohmium Operations Pvt Ltd, Advait Infratech Ltd (in consortium with Rajesh Power Service Private Ltd), and L&T Electrolysers Ltd emerged as successful bidders.

Allocation of Incentives

These firms secured incentives totaling Rs 1,776 crore for establishing a cumulative manufacturing capacity of 1200 MW under ‘Bucket-1: Electrolyser manufacturing capacity based on any stack technology.’

Other Qualified Bidders

While 14 firms qualified for incentives, eight firms did not receive allocations under this scheme, including Matrix Gas and Renewables, ACME Cleantech Solutions, Adani New Industries, and Waaree Energies.

Indigenously Developed Stack Technology

Under ‘Bucket-2: Electrolyser manufacturing capacity based on indigenously developed stack technology,’ Homihydrogen and Adani New Industries emerged as successful bidders, receiving incentives for their respective capacities.

National Green Hydrogen Mission (NGHM)

The Union Cabinet approved the NGHM in January 2023 with an outlay of Rs 19,744 crore, aiming to establish India as a global manufacturing hub for green hydrogen. The mission targets 5 million metric tonnes per annum of green hydrogen production capacity by 2030.

Objectives and Impact

The NGHM seeks to position India as a key player in green hydrogen production, utilization, and exports, fostering international collaboration and engagement in hydrogen and fuel cell technologies. Additionally, it entails the development of green hydrogen hubs at major ports like Deendayal, Paradip, and V O Chidambaranar (Tuticorin), as identified by the Ministry of Ports, Shipping, and Waterways.

This initiative marks a significant stride towards achieving India’s renewable energy goals and advancing the global transition towards sustainable energy sources.