MUMBAI:
L&T Electrolysers Ltd and Matrix Gas and Renewables Ltd have secured subsidies under New Delhi’s premier green hydrogen promotion initiative, filling the void left by Jindal India Ltd, a BC Jindal Group entity, which withdrew its participation at the eleventh hour, according to a source familiar with the situation.
The decision was made on Thursday following Jindal India’s failure to meet the 3rd of February deadline for providing the requisite bank guarantees to formally enrol in the program, the source, who preferred anonymity, revealed.
These subsidies are part of the ₹17,490-crore Strategic Interventions for Green Hydrogen Transition (Sight) scheme, designed to offer financial support to companies establishing electrolyser manufacturing plants across India.
Jindal India opted out of the program due to disagreements with its overseas technology partner, as per the aforementioned source.
L&T Electrolysers has been granted the highest incentives, amounting to ₹444 crore, to establish a 300-megawatt annual electrolyser manufacturing capacity, a significant boost from its initial allocation of 63 MW. This increased allotment was made possible following Jindal India’s withdrawal.
Meanwhile, Matrix has secured incentives worth ₹93 crore for setting up a 63 MW annual electrolyser manufacturing capacity.
Under the purview of the ministry of new and renewable energy (MNRE), the scheme is administered by the Solar Energy Corporation of India (Seci).
Jindal India had applied for subsidies to establish a 300 MW annual electrolyser manufacturing capacity and was eligible for a maximum subsidy of ₹444 crore.
Among the eight companies chosen by the government in January for the inaugural tranche of the scheme are Reliance Electrolyser Manufacturing Ltd, Ohmium Operations, John Cockerill Greenko Hydrogen Solutions, Adani New Industries Ltd, Homihydrogen Private Ltd, and Advait Infratech Ltd.
Preparations for the second tranche of the scheme are currently underway.
“The recent reallocation of resources by the Indian government towards domestic green hydrogen electrolyzer manufacturing underscores a growing commitment to fostering indigenous production capacity in this burgeoning clean energy sector,” remarked Saurabh Agarwal, Partner at EY. “If successful, this initiative could make substantial contributions to India’s energy autonomy and self-reliance objectives.”
Of the eight companies selected for the Sight scheme, two are slated to establish approximately 200 MW of cumulative annual electrolyser manufacturing capacity using domestically developed technology. The remaining six, including Jindal India, are tasked with installing a combined 1,200 MW of electrolyser capacity using any technology stack.
The Sight scheme aims to bolster the domestic production of green hydrogen and electrolysers, forming an integral part of the government’s National Green Hydrogen Mission.
An electrolyser utilizes electricity to split water into elemental oxygen and hydrogen, with hydrogen serving as a clean fuel alternative to fossil fuels.
In 2022, Jindal India Solar Energy, another BC Jindal group entity, withdrew from a government initiative aimed at promoting clean energy.
Additionally, the company backed out of a production-linked incentive scheme for vertically integrated high-efficiency solar modules in 2022, with its capacity subsequently awarded to units of Reliance Industries and the Adani group.