Waaree Energies inks 15-yr EAAS deal for 2.5 MW electrolyzer, 50 MW MoU signed

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AuthorSatyam Jha|Published at:
Waaree Energies inks 15-yr EAAS deal for 2.5 MW electrolyzer, 50 MW MoU signed
Overview

Waaree Energies, through its subsidiary Waaree Clean Energy Solutions, has secured a 15-year 'Electrolyzer as a Service' (EAAS) agreement for a 2.5 MW alkaline electrolyzer with Zero Footprint Industries Ltd (ZFI). The partnership aims to accelerate India's green hydrogen economy, supported by an MoU for supplying an additional 50 MW of electrolyzers. This move leverages Waaree's manufacturing capabilities and EAAS model to generate predictable long-term revenue in the burgeoning green hydrogen sector.

Waaree Energies Expands Green Hydrogen Footprint with EAAS Deal and 50 MW MoU

Waaree Energies has signed a 15-year 'Electrolyzer as a Service' (EAAS) agreement for a 2.5 MW alkaline electrolyzer system with Zero Footprint Industries Ltd (ZFI). A strategic MoU was also inked for the supply of an additional 50 MW of electrolyzers through the EAAS route.

Reader Takeaway: Long-term EAAS revenue secured; scaling green hydrogen projects remains a key challenge.

What just happened (today’s filing)

Waaree Energies, through its wholly-owned subsidiary Waaree Clean Energy Solutions, has entered into a significant 'Electrolyzer as a Service' (EAAS) agreement with Zero Footprint Industries Ltd (ZFI). The deal covers a 2.5 MW alkaline electrolyzer system with a 15-year contract duration.

Additionally, a Memorandum of Understanding (MoU) was signed between the two entities, outlining the supply of 50 MW of electrolyzers via the EAAS model for multiple green hydrogen projects planned across North India. This strategic partnership aims to accelerate the adoption of green hydrogen and support ZFI's transition from grey to green hydrogen.

The 2.5 MW project is projected to produce approximately 41 lakh Nm3 of green hydrogen and 20 lakh Nm3 of green oxygen annually. The first electrolyzer stack is scheduled for delivery in Q2 FY2026-27, with commercial operations anticipated by Q3 FY2026-27.

Why this matters

The EAAS model offers Waaree Energies a stable, long-term revenue stream derived from both electrolyzer manufacturing and operational services. This collaboration also provides a platform for Waaree to demonstrate its advanced alkaline electrolyzer technology and robust Operations & Maintenance (O&M) capabilities within the rapidly expanding green hydrogen market.

The initiative directly supports India's Net Zero commitments and the broader objectives of the National Green Hydrogen Mission (NGHM), positioning Waaree as a key enabler in the country's clean energy transition.

The backstory (grounded)

Waaree Energies, a prominent player in India's renewable energy sector, known for its extensive solar manufacturing and EPC services, has been strategically expanding into the green hydrogen domain. The company has already approved plans for a 300 MW electrolyzer manufacturing plant.

This move is supported by government incentives, as Waaree has secured Production Linked Incentives (PLI) for electrolyzer manufacturing under the SIGHT scheme of the NGHM. The National Green Hydrogen Mission, launched in 2023, aims to establish India as a global hub for green hydrogen production, targeting 5 MMT production by 2030 and attracting significant investments. Zero Footprint Industries Ltd (ZFI) is also a noted participant in the green hydrogen sector, with a manufacturing unit in Uttar Pradesh.

What changes now

  • Predictable Revenue: Waaree gains a long-term, recurring revenue stream through the 15-year EAAS contract.
  • Technology Showcase: The partnership allows Waaree to demonstrate its electrolyzer technology and O&M expertise in a live project environment.
  • Market Position: Strengthens Waaree's foothold in the nascent but rapidly growing green hydrogen infrastructure market.
  • Strategic Alignment: Reinforces its role as a key contributor to India's ambitious green hydrogen targets.
  • Scalability Potential: The 50 MW MoU indicates significant future growth opportunities beyond the initial project.

Risks to watch

  • Execution Risk: Successful implementation of the 2.5 MW project and subsequent projects under the 50 MW MoU will be crucial.
  • Policy Dependence: The green hydrogen sector's growth is closely tied to ongoing government policies, incentives, and regulatory support.
  • Scaling Challenges: Expanding electrolyzer manufacturing and project deployment capabilities to meet future demand.

Peer comparison

Waaree Energies is competing in an increasingly crowded space. Key peers in electrolyzer manufacturing and green hydrogen projects include Adani New Industries Limited (ANIL), which is heavily investing in large-scale green hydrogen production, and Larsen & Toubro (L&T), which has also established an electrolyzer manufacturing facility in Gujarat. L&T manufactures McLyzer electrolyzers, while Waaree focuses on its alkaline electrolyzer technology.

Context metrics (time-bound)

  • The EAAS agreement is for a 15-year contract duration.
  • The initial project scale is 2.5 MW, with a further 50 MW outlined in a subsequent MoU.
  • Waaree has an existing approved electrolyzer manufacturing capacity of 300 MW.

What to track next

  • Milestones related to the Q2 FY2026-27 delivery of the first electrolyzer stack and Q3 FY2026-27 commercial operations start.
  • Progress on the execution of the 50 MW MoU and the development of associated green hydrogen projects.
  • Waaree's financial performance, specifically the contribution of its green hydrogen segment to revenue and profitability.
  • Further policy announcements or amendments by the Indian government that could impact green hydrogen project development and economics.
  • The company's ongoing capacity expansion plans for electrolyzer manufacturing.
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