The Gas Authority of India Limited (GAIL) has issued an expression of interest (EoI) to select partners for setting up an electrolyzer manufacturing facility to produce green hydrogen.
GAIL intends to set up an electrolyzer manufacturing project by incorporating a special purpose vehicle (SPV) or stock acquisition in an electrolyzer manufacturing company under operation or construction. In the case of an equity partnership, GAIL will hold 26% equity in the said entity.
The last date to submit the bids is December 17, 2021.
The EoI is valid for six months from the date of submission. Companies or consortiums from India or countries that share a land border with India can participate in the bidding.
Apart from investing in the proposed electrolyzer manufacturing project, the proposed entity will secure land and project financing and select technology partners, engineering consultants, environmental consultants, and EPC contractors. The entity will monitor and review project development activities and ensure project execution timelines are met.
The proposed entity will also manage the operation and maintenance of the electrolyzer project and get statutory approvals and clearances. The entity will also market the electrolyzers with an option for captive use for utilization by GAIL or their affiliates.
Each organization can submit only one bid, either as a party or as a lead member of the consortium. The authorized person signing the EOI document should be a managing director, chairman, or C-suite executive.
The bidders should state the equity they wish to acquire in the SPV or the equity it intends to offer GAIL in their existing company. The bidders should also specify the electrolyzer technology that would be used in the project.
The bidders have to submit an estimated capital investment and operating cost for the annual electrolyzer manufacturing capacity of 200 MW, 500 MW, 1 GW, and 2 GW, along with the cost breakup of all major components.
Recently, another government-owned enterprise, Indian Oil Corporation Limited, issued a global tender to develop green hydrogen generation facilities on a build, own, operate (BOO) basis at its refineries in Mathura, Uttar Pradesh, and Panipat, Haryana.
In August 2021, NTPC issued an expression of interest (EoI) for Indian and global companies to set up a pilot project to blend green hydrogen with natural gas in the city gas distribution network.
Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.