Your firm plans to set up a 250-MW green hydrogen electrolyser factory with an investment of Rs 300 crore to Rs 400 crore by the end of 2025 and an additional Rs 7 crore for R&D of PEM electrolysers. Given the size of your company, where will such a big amount of capital come from?
Our company is committed to its mission to decarbonise the planet and setting up a 250-MW green hydrogen electrolyser factory is a step in the direction to becoming a renewable energy developer, apart from providing consultancy. In helping accelerate the adoption of renewable energy in developing countries through our consultancy services, we have also gained the confidence of investors in the RE sectors. This has encouraged us to go ahead with our 2025 project with an investment of Rs 300 crore to Rs 400 crore that we plan to raise in stages from seed to Series C++ over a span of three to four years. It would leverage our connections with venture debt funds, corporate venture capital and venture capital funds in the renewable energy and manufacturing sector. The additional Rs 7 crore for R&D would be utilized from the corpus created by the company over the years for these initiatives.
Where will this factory be located? How far has the project implementation process reached?
We are in discussions with the government to finalise the location and are also exploring the options, incentives and benefits provided by the government for green hydrogen. The project implementation process is under process and it will come on ground in Q4 of 2023.
Apart from our goal of producing green hydrogen at a viable cost, the company also plans to provide safe solutions for its storage, generation and transportation.
Can you tell us in detail how those plans will take shape?
We eventually aim to solve all bottlenecks that the world faces in the use of green hydrogen – be it in terms of production or storage. We will thus start with producing electrolyzers, a key ingredient in producing green hydrogen. Currently, there is a shortage across the world. After electrolysers, we will then move to the production of high-pressure tanks and cryogenic vessels that are necessary for the storage of hydrogen.
Being a renewable energy consultancy, how did this shift towards project development and green hydrogen come about? What is your future outlook and growth strategy on green hydrogen?
The shift to green hydrogen is based on the demand we observed from our existing renewable energy clients as well as the core technological competencies we accumulated along with major domestic and international players in green hydrogen.
Since we plan to be the incumbent players within green hydrogen for years to come, we are starting with our first milestone of electrolyser production to start in Q4 of 2023.
The company will be shifting to project development using competencies from its international sister firm – Kushal Group – which has done several projects in solar energy and telecom across several Asian countries.