YOG INFRA Q4 2024 insights
INDIA is beeming with a lot of project annoucements and developments in clean energy transition sectors. Most notably, we see green hydrogen and long-duration energy storage as focus sectors; wherein government has provided targted policy and regulatory support to encourage investments. However, financing modalities and due-diligence needs to be strengthened to ensure advancement of such projects.
Read more about key developments in Infrastructure and PPPs in India in power & clean energy transition sector our latest insight.
This is first publication on a 2-part insight series on India.
OCTOBER 2024
RBM INFRACON SEEKS FINANCING FOR GREEN HYDROGEN PROJECT
Gujarat-headquartered RBM Infracon is seeking financing to develop a 15 MW green hydrogen plant. The plant will cost an estimated INR 2 Bn (USD 23.8 Mn). The company aims for the project to start operations before November 2025. It will be established as three units of 5 MW each in Jamnagar, Kutch, and Bhuj. The electrolyzer for the project will be procured from Greenzo Energy, an indigenous alkaline electrolyzer manufacturer.
Greenzo, which has an order book of INR 14 Bn (USD 165 Mn), signed a memorandum of understanding with RBM Infracon for the 15 MW green hydrogen project. The two plan to collaborate further for more projects. India’s Ministry of New and Renewable Energy issued guidelines for developing standards and a regulatory framework for green hydrogen. It proposed spending INR 2 Bn (USD 24 Mn) to fund the creation of new testing facilities and upgrade existing ones with a view to ensuring the security and safety of operations.
ADANI AND GOOGLE ANNOUNCE COLLABORATION TO BOOST CLEAN ENERGY IN INDIA
The Adani Group and Google announced a partnership aimed at enhancing their sustainability efforts and contributing to the growth of clean energy in India. Adani Group would supply renewable energy generated from a new solar-wind hybrid project located at Khavda, Gujarat, home to the world's largest renewable energy facility. The project is expected to commence commercial operations in the Q3 of 2025.
With its strong track record in executing large-scale renewable projects, including wind, solar, hybrid, and energy storage, Adani is well-equipped to deliver tailored energy solutions for commercial and industrial (C&I) clients. This strategic focus aims to assist industries in meeting their energy needs while simultaneously reducing their carbon footprints. Moving forward, Adani plans to concentrate on expanding its presence in the merchant and C&I segments, a crucial step in the decarbonization of various industries.
TATA POWER TO INVEST USD 14.3 BN IN RAJASTHAN
India’s Tata Power has signed a memorandum of understanding with the government of Rajasthan to invest USD 14.3 Bn in the state over the next 10 years.
Key points include:
Investments of nearly INR 1.2 Trn (USD 12.3 Bn) earmarked for renewables projects;
Renewable Energy Projects: INR 75,000 Cr dedicated to green energy projects, including solar and wind energy initiatives.
Power Transmission and Distribution: INR 20,000 Cr for modernizing grid infrastructure, reducing energy losses, and enhancing power quality.
Nuclear Power: INR 10,000 Cr allocated for exploring nuclear power plant development.
Electric Vehicle (EV) Charging: INR 1,000 Cr investment to set up 1 lakh EV charging points across the state.
Rooftop Solar Installations: Installation of rooftop solar for 10 lakh households under the PM Surya Ghar Yojana.
SEMBCORP INDUSTRIES BAGS 150 MW WIND-SOLAR HYBRID PROJECT BY SUBSIDIARY
Singapore-based Sembcorp Industries secured a 150 MW wind-solar hybrid project through its arm Sembcorp Green Infra Private Ltd. The build-own-operate project is part of a 600 MW bid issued by SECI.
Sembcorp Industries (Sembcorp), through its wholly-owned renewables subsidiary Sembcorp Green Infra Private Ltd, has received the Letter of Award (LOA) for a 150MW Inter State Transmission System (ISTS) connected wind-solar hybrid power project (the Project) from Solar Energy Corporation of India Ltd (SECI).
The power generated from this project will be sold to SECI under a long-term power purchase agreement (PPA) lasting 25 years. With this award, Sembcorp's gross renewables portfolio in India stands at 4.9GW.
This brings Sembcorp's gross renewables capacity globally to 14.6GW, including a 49MW acquisition pending completion. The award of the Project is in the ordinary course of business and is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2024.
ADB AGREES USD 241 MN LOAN TO INDIAN STATE
The Asian Development Bank (ADB) has approved a USD 241.3 Mn loan to improve the distribution of power in the Indian state of West Bengal. The ‘West Bengal Distribution System Strengthening Program’ is aimed at improving electricity distribution for 8.96 Mn consumers in seven districts of the state.
It will replace low-tension overhead lines with aerial bundled cables; separate electricity feeders for agriculture and non-agriculture users; and develop an integrated information and operation management system for power supply quality, performance monitoring, and corporate financial management.
The program is expected to raise the operational efficiency of West Bengal State Electricity Distribution Company by building its capacity on asset and financial management, promotion and introduction of renewable energy, and tariff rationalization, among other measures.
Solex Energy is planning to invest more than INR 8,000 Cr (USD 1 Bn) as part of its Vision 2030 to become a fully integrated solar technology player. The company aims to set up a solar cell manufacturing facility with an initial capacity of 2 GW, expandable to 5 GW, utilizing TOPCon technology.
This facility will be developed in two phases, with the first 1 GW starting production by late 2025 and the second by the end of 2026. Solex plans to boost its module manufacturing capacity from 1.5 GW by the end of 2024 to 15 GW. Currently, it has a 700 MW module production capacity with an additional 800 MW to start production by December this year.
GREENZO ENERGY LAUNCHES 1 MW INDIGENOUS ELECTROLYZER STACK FOR GREEN HYDROGEN PRODUCTION
Greenzo Energy, India’s sole indigenous alkaline electrolyzer manufacturer, has launched its 1 MW alkaline electrolyzer stack, the “Un Wheel,” marking a significant step in green hydrogen production.
This 100% indigenous technology, developed entirely by Indian scientists and engineers, is tailored for India’s environmental conditions and operates across a temperature range of -20°C to 60°C. With a lifespan of 20 years, the stack delivers hydrogen at 30 bar pressure, eliminating the need for additional compressors. The “Un Wheel” electrolyzer includes advanced monitoring features for water quality, pressure levels, and hydrogen purity, ensuring efficient and safe hydrogen production. Key parameters like lye temperature, circulation, and dew point are controlled to maintain hydrogen purity and operational stability.
INDIA INVESTS USD 25 MN IN HYDROGEN HUBS TO BOOST GREEN SHIPPING, PILOT PROJECTS UNDERWAY
India has committed USD 25 Mn to develop hydrogen hubs at key ports to drive its green shipping initiative. These hydrogen hubs at Deendayal, Paradip, and V.O. Chidambaranar ports will include bunkering and refueling facilities for green hydrogen-powered vessels, marking a significant step in decarbonizing India’s maritime sector. In addition, India is investing USD 14 Mn in pilot projects under the National Green Hydrogen Mission (NGHM) to convert existing vessels to run on green hydrogen or derivatives. The Shipping Corporation of India is converting two vessels to run on green methanol. The NGHM, launched with a USD 2.4 Bn outlay, targets 5 million metric tonnes of green hydrogen production annually by 2030, with investments exceeding USD 100 Bn and generating over 6 lakh jobs.
As part of the National Green Hydrogen Mission, the Indian government has approved three pilot projects for green hydrogen-based steel production, with a total allocation of INR 347 crore (USD 41 Mn). These include
50-ton-per-day (tpd) plant by Matrix Gas and Renewables Ltd
40-tpd plant by Simplex Castings Ltd
3,200 tpd plant by the Steel Authority of India Ltd.
The projects aim to validate the technical and economic feasibility of using green hydrogen in steelmaking, with expected commissioning over the next three years. The initiative seeks to advance low-carbon steel production in India.
NTPC collaborated with the Indian Army to deploy a solar hydrogen-based microgrid system in Chushul, Ladakh, ensuring a stable power supply for off-grid Army locations. The microgrid will generate 200 kW of continuous power year-round, using solar energy and hydrogen storage to replace diesel gensets.
Designed to withstand harsh winter conditions, this system will provide sustainable, uninterrupted power to Army posts in strategically critical areas. NTPC will manage and maintain the project for 25 years, supporting Indian soldiers stationed in these challenging environments.
Airox Nigen Equipments, a leader in hydrogen production, storage, and power solutions, has successfully executed more than 80 hydrogen generation plants across India, making it the first company in the country to reach this milestone. The firm aims to expand its footprint to 100 plants by 2025, enhancing its technologies to lower green hydrogen costs.
Notable projects include collaborations with L&T, NPCIL, THDC, and SJVN. Airox Nigen is also setting up a 3 GW electrolyzer manufacturing facility in Rohtak, Haryana, after commissioning its Indigenous alkaline electrolyzer for SJVN’s green hydrogen project in Himachal Pradesh.
GreenH Electrolysis has launched a 1 MW PEM electrolyser at its Jhajjar facility in Haryana, aimed at providing hydrogen for India’s first hydrogen-powered train as part of the “Hydrogen for Heritage” project.
The electrolyser can produce about 430 kg of hydrogen daily at 40 bar (g), meeting ISO 14687 standards. The Jind station will also include 3,000 kg of hydrogen storage, a compressor, and two dispensers for quick refuelling.
NOVEMBER 2024
EQUINIX SIGNS 33 MW RENEWABLES PPA WITH CLEANMAX
California-based digital infrastructure company Equinix has signed a power purchase agreement in India with Brookfield-backed renewables developer CleanMax.
The parties will collaborate to develop a 33 MW captive power plant in Maharashtra state. The project will supply power to Equinix’s portfolio of data centers in Mumbai. It will include 26.4 MWp of solar capacity and 6.6 MW of wind capacity and is scheduled to become operational in phases in 2025.
INDIGRID LAUNCHES USD 300 MN TRANSMISSION AND STORAGE PROJECTS PLATFORM
Indian power sector infrastructure investment trust IndiGrid has launched a USD 300 Mn platform, EnerGrid, to focus on bidding for and developing transmission and standalone battery energy storage system projects.
EnerGrid will target contracts of about USD 1.2 Bn over the next few years. British International Investment (BII) and the Norwegian Climate Investment Fund, managed by Norfund, are InvIT’s partners in the platform. Earlier this fiscal year, IndiGrid announced the first phase of this partnership, under which BII and Norfund - through KNI India, Norfund’s joint venture with Norwegian pension fund KLP - invested in three of IndiGrid’s greenfield transmission projects.
With the EnerGrid platform, IndiGrid, BII and Norfund, alongside KLP through KNI India, have committed approximately USD 300 Mn, with each partner contributing around USD 100 Mn.
SEMBCORP SECURES 300 MW INDIAN HYBRID RENEWABLES PROJECT
Singapore-headquartered Sembcorp Industries has received a letter of award (LoA) for a 300 MW solar and wind hybrid power project in India. Indian state-run power company NTPC granted the build-own-operate project as part of a 1.2 GW bid.
After the project is completed, the electricity generated will be sold to NTPC under a 25-year deal, subject to the signing of a power purchase agreement (PPA). The project, which is expected to be ready for commercial operation within 24 months from the date of signing of the PPA, will be funded through a mixture of internal funds and debt.
DECEMBER 2024
O2 POWER INKS 100 MW RENEWABLES PPA WITH EAST CENTRAL RAILWAYS
O2 Power has signed a 100 MW Power Purchase Agreement (PPA) with East Central Railways (ECR) to supply renewable energy from its 360 MW installed capacity located across Rajasthan, Gujarat, and Karnataka.
The renewable energy provided under the PPA will power ECR’s operations with a round-the-clock (RTC) clean energy supply, reducing its carbon footprint and improving energy sustainability, hence supporting ECR’s decarbonization objectives. This partnership is part of O2 Power’s broader commitment to advancing India’s transition to clean energy through its solar and wind power projects.
In Q3 of 2023, O2 Power awarded Suzlon Group a contract to supply, install, and maintain 64 wind turbines for its 201.6 MW wind power project, supporting its commitment to clean energy.
List of Key Transactions - Q4 2024
Source: YOG INFRA analysis
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