Alkaline Electrolyser Manufacturing Facility

Project Overview

A consortium led by an Indian engineering conglomerate and a European alkaline electrolyser technology licensor engaged IMARC Engineering to establish a greenfield alkaline electrolyser stack and Balance-of-Plant (BoP) manufacturing facility at Ranjangaon MIDC in Pune District, Maharashtra. The project was structured against a capacity allocation secured under SIGHT (Strategic Interventions for Green Hydrogen Transition) Component I, the electrolyser manufacturing pillar of India's National Green Hydrogen Mission, and within the broader policy framework of India's 5 MMTPA green hydrogen production target by 2030, the SIGHT production support for green ammonia and green hydrogen offtake, and the Green Hydrogen Standard issued by MNRE.

The project involved establishing 300 MW per annum of alkaline electrolyser manufacturing capacity, covering complete stack fabrication (electrodes, diaphragms, end-plates, gaskets, bipolar plates, current collectors) and integrated Balance-of-Plant systems (rectifiers, gas-liquid separators, lye circulation, hydrogen purification, water treatment, control and safety systems), with site infrastructure designed for Phase 2 expansion adding a 200 MW PEM (Proton Exchange Membrane) electrolyser manufacturing line.

Client's Challenges

The client faced several specific challenges in establishing greenfield electrolyser manufacturing in India:

• Alkaline as Phase 1 technology selection: Selecting alkaline as the Phase 1 technology given current cost competitiveness versus PEM (approximately 30 to 40 percent lower system CapEx) and proven multi-decade industrial track record, while preserving optionality for PEM addition in Phase 2 as the technology matures and customer requirements evolve toward higher-pressure and more dynamic operation.
• Stack manufacturing precision: Engineering precision fabrication of bipolar plates (nickel-plated steel), Zirfon-equivalent diaphragms, electrodes (nickel mesh with Raney-nickel activation), end-plates, and gaskets — with tight tolerances on parallelism, sealing surface flatness, and electrode alignment, all critical to electrolyser efficiency, hydrogen purity, and stack longevity.
• SIGHT scheme compliance: Meeting the SIGHT Component I performance milestones across production volume thresholds and Domestic Value Addition requirements over the five-year scheme tenure with its tapered annual incentive structure, while sourcing core technology know-how from the European licensor.
• Specialty material supply security: Securing reliable supply of nickel, KOH electrolyte, Zirfon-equivalent diaphragm material, and high-purity gases through a combination of Indian and international sources, with associated forex and supply-chain risk management for the diaphragm material in particular.
• Customer qualification and bankability: Establishing IEC 62282-3-300 electrolyser performance and safety standards compliance, third-party performance verification, and bankability validation through independent engineer reports critical to securing project finance commitments from offtake customers.
• BoP integration complexity: Coordinating integration of in-house manufactured stacks with external-supplied BoP components (rectifiers, compressors, gas purification) into validated containerised systems delivered to customer sites, with full performance guarantees on hydrogen output, purity, and electrical efficiency.

What We Did

• Pre-Investment and Strategic Advisory

Our feasibility study evaluated four candidate Indian locations — Ranjangaon MIDC (Maharashtra), Dahej PCPIR (Gujarat), Hosur Industrial Estate (Tamil Nadu), and Visakhapatnam SEZ (Andhra Pradesh) — against 15 weighted criteria including heavy-engineering ecosystem maturity, port proximity for specialty material imports, 220 kV grid reliability, state-level renewable manufacturing incentives, water entitlements, and skilled engineering workforce availability from established mechanical and electrical engineering pipelines.

Ranjangaon MIDC was selected on the strength of its established heavy-engineering ecosystem within the Pune-Chakan industrial corridor (Force Motors, JCB India, Mercedes-Benz India, Tata Lockheed Martin Aerostructures, and the broader auto-ancillary base), 220 kV grid via MSEDCL with documented reliability, Jawaharlal Nehru Port proximity, Maharashtra Industrial Policy capital subsidy eligibility, and access to Pune-area engineering graduates from College of Engineering Pune, VIT Pune, and the Industrial Training Institute network.

CapEx planning of INR 820 Crore covered the two parallel stack manufacturing lines, BoP assembly and integration hall, the high-current test stand capable of full-scale electrolyser performance validation, process utilities (KOH electrolyte mixing, hydrogen and nitrogen handling, demineralised water, compressed dry air), the dedicated substation, and on-site laboratories. Our team led the SIGHT Component I Tranche II bid preparation that secured the 300 MW allocation, alongside Maharashtra Industries, Mines and Geology Department investment approval, MIDC plot allotment, and IEC and BIS certification preparation. The SIGHT performance-linked incentive was modelled to deliver a cumulative scheme benefit of approximately INR 420 Crore against achieved production milestones.

• Engineering and Design Services

IMARC designed a 22,000 sq.m built-up facility on a 14-acre plot comprising the stack manufacturing hall (12,000 sq.m), the BoP assembly and integration hall (5,400 sq.m), the test and validation laboratory (1,800 sq.m), and ancillary warehouse, utility, and administrative areas. Stack manufacturing was configured as two parallel lines each rated at 150 MW per annum, executing the standard alkaline electrolyser stack manufacturing sequence: bipolar plate stamping and forming, nickel plating with Raney-nickel activation, electrode mesh fabrication, diaphragm cutting and assembly, gasket fabrication, current-collector preparation, sub-assembly cleaning and inspection, stack assembly with hydraulic press tooling for precision compression, and final pressure-and-leak testing of completed stacks at design pressure.

The Balance-of-Plant assembly hall accommodated containerised integration up to 5 MW per container module, with parallel work cells covering rectifier integration, gas-liquid separator assembly, lye circulation skid fabrication, hydrogen purification (pressure-swing adsorption) integration, water treatment skid assembly, and final containerised system integration with control panel commissioning. The test stand provided full-scale electrolyser performance verification up to 5 MW unit capacity, with measured hydrogen output, purity, electrical efficiency, and dynamic response characterisation against IEC 62282-3-300 protocols.

Process utility design covered 12 MW grid demand supplemented by a 2 MW captive solar array, demineralised water at 0.1 µS/cm conductivity (28 m³/hr design), KOH electrolyte mixing and storage facilities, controlled-humidity HVAC for clean assembly environments, hydrogen detection across 84 fixed sensors with classified electrical zoning to BIS IS/IEC 60079 standards, explosion-relief panels in test bay areas, and integrated emergency response systems.

• Procurement and Supply Chain Support

We executed a multi-geography procurement programme across 58 critical vendors. Bipolar plate stamping and forming equipment was sourced from European precision-press specialists; nickel plating and Raney-nickel activation systems from a combination of Indian and European plating specialists; electrode mesh and diaphragm cutting equipment from European specialty machinery suppliers; hydraulic stack assembly press tooling from German precision-tooling specialists; and the high-current test stand from a European electrolyser test-systems specialist with documented references at established global electrolyser manufacturers.

Balance-of-Plant component sourcing was deliberately structured to maximise SIGHT Domestic Value Addition: rectifiers from established Indian power electronics manufacturers, compressors and pressure-swing adsorption hydrogen purification from Indian-foreign technology partnership sources, water treatment and demineralisation skids from Indian process equipment suppliers, control systems and SCADA hardware from Indian-foreign hybrid manufacturers, and structural fabrication entirely from qualified Indian heavy-fabrication contractors. Specialty material sourcing combined Indian sources for nickel mesh, KOH electrolyte, and high-purity gases with structured international agreements for Zirfon-equivalent diaphragm material under the European technology licensor's preferred supplier network. Vendor qualification protocols included on-site supplier audits, factory acceptance testing under simulated stack operating conditions, site acceptance validation, and full incoming material certification under IEC 62282 traceability requirements. Domestic Content reached 54 percent in Year-1 operations and 58 percent in Year-2 as the Indian supplier ramp progressed across BoP components and structural fabrication.

• Project Execution and Site Management

Our turnkey project management delivered 24 months from groundbreaking to first commercial stack release, coordinating civil construction, mechanical and electrical erection, equipment integration, and integrated commissioning across the two stack manufacturing lines, the BoP assembly hall, and the test stand. We managed construction of the main manufacturing block, the BoP assembly hall, the test laboratory complex including the high-current test stand foundation engineered for dynamic load handling, the warehouse and outbound logistics block, and the central utility yard including substation, KOH electrolyte storage and handling, and gas yards.

Phased commissioning ran stack manufacturing line 1 first, with BoP assembly hall and test stand commissioning sequenced to receive the first commercial stacks for performance validation, followed by stack line 2 commissioning in parallel-track. Installation supervision ensured electrolyser-manufacturing-grade specifications: precision-controlled hydraulic press tooling delivering stack compression force within ±2 percent of specification across the stack span, nickel plating bath chemistry controlled within ±5 percent of specification, hydrogen safety classification across all classified zones verified by independent third-party inspection, and SCADA integration logging stack assembly traceability across 28 critical-to-quality parameters per stack. Multi-vendor coordination across European, Indian, and Indian-European hybrid contractors required a 20-strong owner's engineering team supplemented by 12 European resident engineers from the technology licensor during the first stack line's commissioning. Stack performance progression tracked from initial qualification at 62 kWh per kilogram of hydrogen (month 25) to 57 kWh per kilogram by month 32, sustained across both manufacturing lines from month 32 onwards.

• Compliance, Quality and Sustainability

IMARC led certification readiness across IEC 62282-3-300 (electrolyser performance and safety standards), BIS factory and product certifications, ATEX-equivalent Indian intrinsic safety classification under BIS IS/IEC 60079 for hydrogen-handling components, Pressure Equipment Directive-equivalent compliance for pressurised stack and BoP components under the Indian Static and Mobile Pressure Vessels regulations, and ISO 9001, ISO 14001, ISO 45001 management systems. We implemented an integrated quality system, dimensional and surface verification at multiple inspection stages, hydraulic leak testing on every assembled stack at 1.5 times design pressure, electrochemical performance characterisation on a statistical sampling basis under IEC 62282-3-300 protocols, and full lot-level traceability from incoming raw materials through to outgoing stack and containerised system delivery.

Environmental compliance covered Maharashtra Pollution Control Board Consent to Establish and Operate, Hazardous Waste Authorisation for spent nickel plating bath and KOH-bearing process streams (handled through dedicated neutralisation and licensed disposal streams), and Extended Producer Responsibility commitments for end-of-life stack take-back and material recovery. The Hydrogen Safety Code was implemented across all hydrogen-handling areas including the test stand, with classified zoning, dedicated ventilation, and continuous hydrogen monitoring. The facility achieved IGBC Gold certification through 2 MW captive solar (covering approximately 19 percent of facility daytime energy demand), heat recovery from nickel plating bath operations and from the test stand thermal loads, water reclamation at 72 percent of process intake through closed-loop cooling and rinse recovery, and 22 percent lower facility energy intensity versus the European electrolyser-manufacturing benchmark per third-party comparative assessment.

Final Results

Operational Performance

The facility achieved mechanical completion in 24 months with first commercial stack release in month 25. Full 300 MW per annum nameplate capacity was reached at 80 percent utilisation by month 18 of operations, with sustained stack LHV-basis efficiency of 60 percent across both manufacturing lines and hydrogen output purity of 99.999 percent after on-board purification. First-pass quality acceptance reached 96.8 percent at stack level and 98.4 percent at containerised BoP system level. Customer-side qualification of the first containerised 5 MW modules through independent engineer performance verification confirmed achievement of design efficiency, purity, and dynamic response specifications within IEC 62282-3-300 tolerances.

Financial Outcomes

Final CapEx of INR 780 Crore delivered 4.9 percent savings against the INR 820 Crore budget through optimised civil packaging, deliberate Indian heavy-fabrication leverage for the BoP structural and pressure vessel scope, and disciplined multi-vendor procurement under the SIGHT Domestic Value Addition framework. SIGHT Component I performance-linked incentive disbursements commenced from Year-1 commercial production against the tapered annual incentive structure, with cumulative scheme benefit of approximately INR 420 Crore across the five-year scheme window. Year-2 revenue of INR 1,080 Crore was generated at an EBITDA margin of 17 percent — consistent with heavy-engineering capital equipment manufacturing economics — supported by the SIGHT-protected domestic price premium and the Indian green hydrogen project pipeline's early-stage offtake commitments.

Market Access

Long-term supply commitments were signed with four Indian green hydrogen project developers covering aggregate stack-plus-BoP offtake of approximately 720 MW cumulatively through 2030, including SIGHT production-support-linked projects in green ammonia and integrated green hydrogen complexes. Independent engineer bankability rating was secured within 14 months of commercial operations, supported by the demonstrated stack performance, customer-site reference installations, and the European technology licensor's underlying track record. Selective export discussions were initiated with two Middle East green hydrogen project developers, with formal commercial qualification pending Phase 2 PEM technology addition.

Sustainability Impact

Our integrated design — combining 2 MW captive solar covering approximately 19 percent of daytime energy demand, heat recovery from nickel plating bath operations and test stand thermal loads delivering 4.2 GJ per hour of useful thermal energy, variable-frequency drives across cooling, compressed air, and process pump systems, and LED lighting throughout — achieves 22 percent lower facility energy intensity versus the European electrolyser-manufacturing industry benchmark, saving approximately INR 18 Crore annually in energy operating costs. Process water reclamation reaches 72 percent through closed-loop cooling and plating rinse recovery, saving approximately 84,000 m³ annually. The facility holds IGBC Gold certification and operates an end-of-life stack take-back partnership covering Maharashtra and the broader western India industrial corridor.

Strategic Impact

The project established a meaningful contribution to India's electrolyser manufacturing capacity build-out under the SIGHT Component I framework and demonstrated the operational viability of first-time alkaline electrolyser manufacturing at PLI-aligned scale for an Indian engineering conglomerate. Year-2 revenue of INR 1,080 Crore, sustained 60 percent stack LHV efficiency, independent engineer bankability rating, and the secured SIGHT scheme participation led the client to approve Phase 2 expansion comprising a 200 MW PEM electrolyser line targeting higher-pressure and dynamic-operation customer applications, alongside scoping work for backward integration into specialty electrode and diaphragm component manufacturing.

IMARC Engineering's end-to-end EPCM advisory — combining alkaline electrolyser stack and BoP engineering, SIGHT scheme navigation, IEC/BIS compliance readiness, and disciplined multi-vendor execution — enabled the client to anchor a strategically important Indian industrial asset in a sector where technology unfamiliarity, scheme-compliance complexity, and customer-bankability requirements had previously raised the entry barrier for first-time Indian electrolyser manufacturers.