GH2 Solar forays into electrolyser manufacturing with a ₹400 Cr investment in a Gwalior plant. The JV with South Korea’s AHES aims for 105 MW capacity by 2026, backed by a ₹157.5 Cr PLI subsidy.
JV with South Korea’s AHES to Set Up 105 MW Facility by 2026, Backed by Govt PLI Subsidy
New Delhi, India – In a significant move to bolster India’s green hydrogen ecosystem GH2 Solar a player in the solar EPC business, has announced its foray into electrolyser manufacturing with an initial investment of ₹400 crore. The company is setting up a manufacturing facility in Pipersewa, Morena (Gwalior, Madhya Pradesh) through a joint venture with South Korea-based Advanced Hydrogen Energy Solutions (AHES) Ltd.
The facility, slated for completion by end-2026, will initially have an annual manufacturing capacity of 105 MW which has been awarded under the Solar Energy Corporation of India’s (SECI) SIGHT (Strategic Interventions for Green Hydrogen Transition) program. This capacity is supported by a ₹157.5 crore Production Linked Incentive (PLI) subsidy.
Phased Investment and Expansion Plans
The investment will be deployed in a structured manner:
- Phase 1 (₹100 Cr): To set up a 3 GWh Battery Energy Storage System (BESS) assembly line alongside the electrolyser manufacturing initiation.
- Phase 2 (₹300 Cr): To be invested by 2030 to expand the electrolyser manufacturing capacity.
- Long-Term Vision: GH2 Solar plans to scale up electrolyser production to 500 MW by 2030, which will require an additional investment of ₹600-800 crore.
Funding and Future IPO Plans
The initial funding has been secured from a clutch of investors:
- Faruk G. Patel, CMD of KP Group (personal capacity investment)
- Aarth AIF
- GrowMo360
Looking ahead, the company plans to launch a mainboard IPO in the next two years to raise approximately ₹250 crore to fuel its future growth and expansion plans.
Strategic JV and Global Confidence
The partnership with AHES brings critical South Korean technology and expertise to India. Joong-Hee Lee, CEO of AHES, expressed strong confidence in the Indian market, citing its skilled manpower, strong public institutions, and crucial government policy support.
“The future is green, and no nation can achieve it alone. The world must unite in its commitment to sustainable energy. Our joint venture with GH2 Solar brings this vision closer by producing electrolysers in India for the world,” Lee stated.
Why This Matters for India’s Green Energy Goals?
Electrolysers are a critical component in the production of green hydrogen, as they split water into hydrogen and oxygen using electricity (ideally from renewable sources). This investment:
- Strengthens Domestic Supply Chain: Reduces India’s reliance on imported electrolysers, a key goal under the National Green Hydrogen Mission.
- Attracts Global Technology: Brings international expertise (via AHES) to build a robust manufacturing base in India.
- Creates a Manufacturing Hub: Positions Gwalior/Morena as an emerging cluster for green energy equipment manufacturing.
This venture is a concrete step towards achieving India’s ambition of becoming a global hub for the production, use, and export of green hydrogen and its derivatives.
