SECI Announces Results for 1.5 GW Electrolyser Manufacturing Auction

The Solar Energy Corporation of India (SECI) has announced the results of the 1500 MW Electrolyzer Manufacturing Auction, an initiative under the National Green Hydrogen Mission. Following the Envelope-2 bid opening, 11 companies emerged as winners across three specific categories: Bucket 2B, Bucket 2A, and Bucket 1. Adani Enterprises and Newage Green Electro secured wins in two of the three categories.

These manufacturing capacities will be developed under the Ministry of New and Renewable Energy’s Tranche II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. The tender, issued in March 2024, aimed to select Electrolyser Manufacturers (EM) to establish electrolyzer manufacturing capacities across India under the SIGHT Scheme (Tranche-II). The auction was divided into three distinct buckets to accommodate different capacity and technology needs.

In Bucket 2B, which focused on smaller units, a total of 270 MW of bids were received. However, the maximum capacity to be awarded in this category was 100 MW. The winners include Adani Enterprises, Eastern Electrolyser, and Newtrace, each securing 30 MW, while Suryaashish KA1 Solar Park was awarded 10 MW. This category required the use of domestically developed stack technology.

Bucket 2A was designed for 300 MW of capacity, with the requirement that the technology be indigenously developed. In this category, bids totalling 511.5 MW were received. Adani Enterprises won 71.5 MW, while Newage Green Electro secured the remaining 228.5 MW.

Bucket 1, the largest category, offered 1,100 MW of electrolyzer manufacturing capacity and allowed the use of any stack technology. A total of 1980.5 MW of bids were received in this category. Of the 1,100 MW awarded capacities, Waaree Energies secured the largest share with 300 MW, followed by Matrix Gas and Renewables with 237 MW, and Advait Infratech with 200 MW. Other winners include Ohmium Operations (137 MW), GH2 Solar (105 MW), Newage Green Electro (71.5 MW), and Avaada Electrolyser (49.5 MW).

The bidding process allowed companies to participate in all three buckets, with evaluations conducted in a tiered manner. Bucket 2B was prioritised, followed by Bucket 2A, and then Bucket 1. Any unallocated capacities were transferred sequentially from one bucket to the next. The tender required that electrolyzers have a guaranteed operational life of at least 60,000 hours, with end-of-life efficiency not falling below 80 percent. The specific energy consumption for hydrogen production must be 56 kWh/kg or less. 

For alkaline electrolyzers, the local value addition percentage is required to be 40 percent in the first year, increasing annually to 50 percent, 60 percent, 70 percent, and 80 percent over the next four years. For Proton Exchange Membrane, Solid Oxide Electrolyzer, Anion Exchange Membrane Electrolyzer, or any other technology, the local value addition percentage must start at 30 percent in the first year and progressively increase to 40 percent, 50 percent, 60 percent, and 70 percent by the fifth year.

The companies awarded contracts have 30 months from the issuance of the Letter of Award (LoA) to complete the commissioning of their manufacturing facilities. These facilities will also be eligible for quarterly incentives on electrolyzer sales for five years following commissioning.

Among the winners, Suryaashish KA1 Solar Park Private Limited (Bucket 2B) and Ohmium Operations Private Limited (Bucket 1) will focus on developing Proton Exchange Membrane electrolyzer projects. The remaining companies, except Newtrace, will work on Alkaline electrolyzers, with Newtrace developing Membrane-less Electrolyzers.

Several companies, including Ohmium, Matrix, Advait, Adani, and Newage Green Electro, have successfully won bids in both Tranche I and Tranche II of the SIGHT program, each capped at 300 MW.