India announces winners of second hydrogen electrolyser manufacturing subsidy auction
Industry newsThe auction reserved 300MW and 100MW for technologies developed within India, dividing them into two categories: one for larger-scale (2A) and one for smaller-scale (2B) manufacturing capacities. This strategy allowed companies to secure partial awards in one category and top up in the other to meet their total manufacturing goals. For instance, Adani received full support for 30MW in the small-scale category and 71.5MW out of a 101.5MW bid in the large-scale category, but its bid in the open category (Bucket 1) was completely rejected.
However, not all companies benefited from this strategy. Suryaashish KA1 Solar Park, which bid for proton-exchange-membrane (PEM) electrolysers in both the small and large-scale categories, only secured 10MW out of 30MW in the small-scale category. Avaada managed to secure only 49.5MW out of its 300MW bid in the open category.
Bids were evaluated based on energy consumption per kilogram of hydrogen produced, with all successful bids consuming less than 50kWh/kgH2. They were also judged on "local value addition," comparing the sales value of the electrolysers to the cost of imported components. The annual subsidies start at 4,440 rupees ($53.54) per kilowatt in the first year and decrease over five years. Penalties apply if the local value addition or energy efficiency falls below the promised levels.