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Published on: Oct. 18, 2024, 12:22 p.m.
Greenzo begins an inspiring movement
  • Agarwal: our electrolysers are suitable for Indian conditions; Photo: Sanjay Borade

By Lancelot Joseph. Executive Editor, Business India

Even as the world unites to fight greenhouse gas emissions and the G7 leaders pledge to achieve net zero emissions by 2050, India is setting its sights on achieving Net Zero by 2070 – a target that demands a radical shift in energy production. Central to this transformation is green hydrogen – the clean fuel of the future, capable of decarbonising industries that have long been dependent on fossil fuels. In this journey, the role of electrolysers, a key device that enables the production of green hydrogen, has become increasingly significant.

Today, despite producing 6-7 million tonnes of hydrogen annually, India’s hydrogen supply is predominantly derived from fossil fuels. This is where green hydrogen steps in as a clean, sustainable alternative, created by splitting water into hydrogen and oxygen using electricity from renewable sources like the sun and the wind. As industries shift towards reducing the carbon footprint, electrolysers and the production of green hydrogen are set to drive the future of energy.

Leading this revolution in India is Greenzo Energy, a company that has developed a fully indigenous alkaline electrolyser technology specifically designed to cater to India’s unique environmental and industrial needs. The company’s expansive manufacturing facility in Sanand, Gujarat, spanning 20,000 sq m with a capacity of 250 MW per year, was inaugurated during a ground-breaking ceremony, attended by Union Home Minister Amit Shah and Chief Minister Bhupendra Patel in October 2023, with the production slated to commence in December 2024.

At the ceremony, Shah addressed the crowd and announced the launch of Greenzo Energy’s facility, emphasising its role in empowering MSME enterprises to produce green hydrogen. He highlighted Prime Minister Narendra Modi’s keen interest in the green hydrogen project and noted that it is in Sanand that the project has officially commenced, marking an inaugural step towards green energy and innovation in India.

“There are a few companies worldwide capable of manufacturing electrolysers at scale, with Greenzo Energy being the only company in India with this capability,” explains Sandeep Agarwal, founder and MD, Greenzo Energy. “Unlike foreign manufacturers, whose designs often cater to narrow temperature ranges and limited durability, our electrolysers are engineered to thrive in India’s diverse climates, functioning effectively at 20-60°C and offering a longer lifespan of 20 years," says he. 

"Our technology employs alkaline electrolysis for hydrogen production and has been the gold standard for over a century. While other electrolysers deliver hydrogen only up to 16 bar, our electrolysers deliver hydrogen at 30 bar, eliminating the need for additional compressors and significantly reducing energy consumption costs – an operational advantage that sets us apart. By strategically prioritising indigenous materials, we have manufactured electrolysers that are not only cost-effective but also uniquely resilient to India’s environmental conditions,”adds Agarwal.

The innovation begins

For Agarwal, an engineer from IIT Roorkee, the path to Atmanirbhar Bharat transcends mere rhetoric. With over two decades of experience in the energy sector, he recognised early on that India’s energy future hinged on green hydrogen. Before establishing Greenzo Energy, as the founder of Kushal Projects, he had already executed over 300 MW of solar projects across Asia, but when he ventured into green hydrogen a decade ago, the value chain was underdeveloped and the technology itself was still maturing.

This prompted him to prioritise R&D, assembling a team of IIT graduates and former NTPC officers. Although their journey was marked by numerous punctures, their perseverance ultimately paid off as they eventually developed a successful prototype in 2022. The electrolyser, the most expensive component of a green hydrogen production facility, accounts for about 70 per cent of the total costs. By developing a cost-effective and indigenous electrolyser, Greenzo has simplified the upstream process and made green hydrogen production more accessible in India.

  • Shah attending the ground-breaking ceremony

The National Green Hydrogen Mission, launched on 4 January 2023, came with an investment of Rs19,744 crore, extending through 2029-30. In the Interim Budget for 2024, funding for the mission saw a significant rise, with allocations jumping from Rs100 crore in 2023-24 to Rs600 crore for 2024-25, which represents about 5 per cent of the mission’s overall budget for that period. The ministry for new & renewable energy has been allocated Rs19,100 crore, emphasising initiatives like PM KUSUM, PM Surya Ghar Muft Bijli Yojana, Green Energy Corridors and bio-energy efforts – all crucial to advancing the green hydrogen value chain.

Meanwhile, Gujarat has emerged as a Hydrogen Hub in this industrial development, partnering with major players such as Reliance, Adani, ArcelorMittal and Torrent, who have pledged substantial investments in green energy projects. The state government has sanctioned 1,990 sq km of land in the Kutch-Banaskantha border for establishing green hydrogen initiatives.

The company has showcased exceptional foresight by swiftly developing an commercially-viable Made-in-India electrolyser and establishing its Gujarat facility in tandem with the National Green Hydrogen Mission’s launch, effectively emerging as a one-of-a-kind first-mover in this growing sector.

“Our indigenous electrolysers are commercially viable,” affirms Agarwal. “We already have an order book of Rs1,200 crore, with orders not only from major private and public companies in India but also from the governments of Oman, Nepal and the UK. And the demand for green hydrogen is set to surge, especially in industries like steel, cement, fertilisers and transportation. To put things in perspective, if you compare its application, a car typically runs 12-20 km on 1 litre of petrol while, with just 1 kg of hydrogen, a car can travel 200-400 km, depending on the size of the vehicle. This shift can truly transform the energy landscape for our economy”.

As the green hydrogen sector gains momentum, numerous companies are attempting to carve out a bigger slice of the pie in this rapidly evolving market. “Within this ecosystem, we can identify three primary types of integrators for electrolysers,” adds Agarwal. “The first imports the electrolyser stack from countries like China and develops the balance of the plant, essentially the additional systems required to operate the electrolyser, in India. While this leverages local manufacturing capabilities, it lacks control over core technology, which can impede effective scaling. In the second method, most system components are imported, including purification units and hydrogen separators, while integrating the electrical systems is done locally. These companies typically function as EPC providers, assembling these imported systems for end-users. While this model facilitates market entry, it remains heavily reliant on foreign technology”.

The last system comprises integrators that establish partnerships with foreign players to set up electrolyser-manufacturing facilities. Although this involves domestic production, technology transfer is often constrained by global restrictions. Consequently, they can assemble electrolysers in India but may not fully control the design or innovation processes.

Vision and expansion

In contrast, Greenzo Energy, as the only stack manufacturer in India, is well-positioned to address this gap. The company offers a comprehensive suite of services, including detailed engineering, on-site installation, operations and maintenance (O&M), and rectification support, utilising AI and IoT-enabled SCADA systems.

  • We ensure that each electrolyser stack meets the highest standards of efficiency and durability. Real-time monitoring of the production process allows for immediate detection and correction of errors

“We ensure that each electrolyser stack meets the highest standards of efficiency and durability. Real-time monitoring of the production process allows for immediate detection and correction of errors. We also emphasise backward integration, and aim to manufacture all critical components like membranes and electrodes in-house by 2025. This ensures that the electrolysers are fully repairable within India, reducing downtime and minimising disruptions to hydrogen production. This is particularly crucial for industries that rely on a continuous hydrogen supply, as it helps lower operational costs while enhancing system reliability,” explains Agarwal.

The company’s initial production capacity in Sanand will be 250 MW and it will be investing R750 crore in the first phase. It is also planning geographical expansion of its manufacturing operations in Goa and Odisha between 2026 and 2030, to support its long-term vision to meet the growing demand for green hydrogen in both domestic and global markets.

Notably, it has maintained its debt-free status well into the second year of its operations and given the current investor sentiment and the influx of investment inquiries, it is confident in its ability to secure funding in a manner that aligns with its long-term strategic objectives.

“We are already planning for the production of fuel cells and Type IV hydrogen storage cylinders, which are essential for hydrogen transportation and storage, marking our forward integration in the hydrogen value chain,” adds Agarwal, while discussing the future of Greenzo Energy.

It’s worth mentioning that Greenzo Energy is not just riding the wave of the green hydrogen revolution – it’s helping to shape it. The company’s journey exemplifies how vision, innovation, and a commitment to sustainability can drive meaningful change. At the heart of this journey is Agarwal, a leader who saw beyond the obvious and dared to venture into uncharted territory. As he continues to steer Greenzo towards new horizons, one cannot help but feel that this is just the beginning of his inspiring movement that has the potential to change the way we power our world.

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