L&T Electrolysers and Matrix Gas win green hydrogen subsidies as Jindal India exits scheme

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L&T Electrolysers and Matrix Gas win green hydrogen subsidies as Jindal India exits scheme

L&T Electrolysers and Matrix Gas win green hydrogen subsidies as Jindal India exits scheme

Industry News
Feb 13,24

Jindal India failed to meet the February 3 deadlines for providing the necessary bank guarantees to formally enroll in the scheme, the source stated.

L&T Electrolysers and Matrix Gas win green hydrogen subsidies as Jindal India exits scheme

L&T Electrolysers Ltd and Matrix Gas and Renewables have secured subsidies under New Delhi’s flagship green hydrogen promotion initiative after Jindal India, a BC Jindal Group company, withdrew at the last minute, according to an anonymous source familiar with the situation.

The decision was made after Jindal India failed to meet the February 3 deadlines for providing the necessary bank guarantees to formally enrol in the scheme, the source stated.

The incentives are part of the Rs 17,490 crore Strategic Interventions for Green Hydrogen Transition (Sight) scheme, which offers subsidies to companies establishing electrolyser manufacturing plants in India.

Jindal India withdrew from the scheme due to disagreements with its overseas technology partner, the source mentioned.

L&T Electrolysers received the maximum incentives of Rs 444 crore to establish a 300-megawatt annual electrolyser manufacturing capacity, a significant increase from its initial allocation of 63 MW. Matrix was awarded Rs 93 crore in incentives for a 63 MW annual electrolyser manufacturing capacity.

Jindal India, which had applied for incentives to set up a 300 MW annual electrolyser manufacturing capacity, was granted a maximum subsidy of Rs 444 crore. However, due to its withdrawal, the subsidies were redistributed among the remaining companies.

The scheme, falling under the ministry of new and renewable energy (MNRE) and managed by the Solar Energy Corporation of India (SECI), is part of the government's National Green Hydrogen Mission.

Of the eight companies chosen for the Sight scheme, two will establish approximately 200 MW of cumulative annual electrolyser manufacturing capacity using domestically developed technology, while the remaining six, including Jindal India, are designated to install a cumulative 1,200 MW of electrolyser capacity using any technology stack.

The initiative reflects the Indian government's commitment to fostering domestic production in the emerging clean energy sector. Saurabh Agarwal, Partner at EY, remarked, “This initiative, if successful, could contribute significantly to India’s energy independence and self-sufficiency goals."