Indian firms Gensol Engineering and Matrix Gas and Renewables have won a production-linked incentive (PLI) bid for a 63-megawatt electrolyser manufacturing plant in India.

The companies secured the award under the Indian government’s Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme. A Gensol spokesperson told Kallanish that based on the notification of award received by the firms, the project is entitled to incentives on an annual basis on sales of electrolysers for five years from plant’s start-up. “The maximum incentive allocated is INR 932.4 million ($11.20m) spread across five years,” the spokesperson adds.

“This milestone is not just a testament to our commitment to India’s green hydrogen mission but also a beacon of our aspiration to drive global decarbonisation efforts,” says Ali Imran Naqvi, ceo (EPC Business), Gensol. “Green hydrogen is pivotal in the world’s transition to sustainable energy, and Gensol, leveraging this opportunity, aims to foster global partnerships, technological exchange, and innovation.”

Chirag Kotecha, director at Matrix Gas and Renewables, adds: “Selected amidst stiff competition from major conglomerates, our consortium stands out for its technological expertise and manufacturing experience. We are eager to harness our collective capabilities to establish a state-of-the-art electrolyser manufacturing facility, propelling India towards a sustainable, low-carbon future.”

The companies believe the advanced electrolyser project, which will produce alkaline water electrolysers (AWE), can “significantly” contribute to India’s ambitious target of producing 5 million tonnes/year of green hydrogen by 2030. Under the terms of the scheme, the manufacturing facility has to be fully commissioned within 30 months from the date of receipt of the letter of award.

Announced in July 2023 by Indian state-owned Solar Energy Corporation of India (SECI), tranche 1 of the SIGHT program offers two separate financial incentives: one for domestic manufacturing of electrolysers and the other for green hydrogen production. Under the first, the government will offer subsidies of up to INR 4,440 ($53.4)/kilowatt. A maximum subsidy of INR 50/kilogram of H2 in the first year, INR 40 in the second, and INR 30 in the third, will be available under the second scheme.

According to documents published by SECI last month, the consortium had bid for a quoted manufacturing capacity of 105 MW/year. However, the project was not among the eight firms that were allocated electrolyser manufacturing capacity in the results initially published by SECI then. It is unclear when the new award will be published on SECI’s website.