SFC Energy AG and FC TecNrgy Partner to Establish Hydrogen and Methanol Fuel Cell Manufacturing Facility in India

SFC Energy AG, a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, has signed a strategic cooperation agreement with its long-term Indian partner FC TecNrgy Pvt Ltd. (FCTec) to establish a new manufacturing facility for hydrogen and methanol fuel cells and further market development in India. The signing took place during the meeting between the German Chancellor Olaf Scholz and Prime Minister Narendra Modi in New Delhi and fulfills the strategic framework of the “National Green Hydrogen Mission” initiated by Prime Minister Modi, which envisages a clean energy supply and CO2 reduction in India.

SFC Energy has established a subsidiary called SFC Energy India Ltd. to comply with the requirements of the “Make in India” legislation. SFC Energy India will be responsible for manufacturing and quality assurance of EFOY Hydrogen and EFOY Methanol fuel cells, while FCTec will continue to be SFC’s “Go To Market” partner responsible for developing, installing, and integrating custom fuel cell solutions, as well as providing after-sales service. Both companies will move into a 35,000-square-meter manufacturing and assembly center in Udyog Vihar, Gurgaon, becoming one of the first and most advanced fuel cell production facilities in India. SFC Energy India and FCTec have agreed to mutual equity participation to underline the strategic importance of the partnership.

India has set ambitious climate protection targets and aims to reduce its CO2 emissions by 45% by 2030 compared to 2005, becoming climate neutral by 2070. To achieve these goals, the country plans to replace generators currently in use with fuel cells in various sectors, including transportation, military, and critical infrastructure, such as telecommunications. Decentralized fuel supply with green hydrogen and methanol is considered decisive, and the Indian government has initiated the “National Green Hydrogen Mission” with an estimated investment of USD 44 billion by 2030. Low-end methanol fuel cells are ideal for mission-critical energy applications in video surveillance, telecommunications, defense, homeland security, and oil, gas, and mining.

“We have been active in the Indian market since 2016, are familiar with the local requirements and needs, and are working successfully and trustfully with FCTec there. For us, India has enormous growth potential and is therefore of great strategic importance for SFC Energy’s expansion. The step to open a site in the most populous country in the world is therefore only logical and with FCTec we have the right partner at our side at the right time. With this important step for our company, we want to further expand our business in Asia with India as our core market and to better exploit the potential through customer proximity. We are also benefiting from the clear political will of the Indian government to massively promote the production of clean energy and the reduction of CO2 emissions. We can contribute to this with our fuel cells, for example, to replace the diesel generators that are widely used in India. The opening in Gurgaon is therefore also a strong signal in the global Race-to-Zero,” says Dr. Peter Podesser, CEO of SFC Energy AG.

“We have been developing and marketing methanol fuel cells based power solutions for more than seven years, making us one of the first fuel cell companies in India. In 2022, we added hydrogen fuel cells to our portfolio. Manufacturing energy solutions including fuel cells in India is part of our long-term strategy that will position us as one of the market leaders in the fuel cell segment in India. Our Prime Minister, Narendra Modi, and the Indian government have set a goal to significantly reduce carbon emissions through technological innovation. This, along with recent policies and initiatives, has given a huge boost to small startups like FCTec. Hydrogen fuel cells will be one of the key components of India’s hydrogen economy, and we are very excited to be part of the upcoming clean energy revolution. This is because our fuel cells can be used as solution components to replace the diesel/gasoline generators that are widely used in India,” says Colonel Karandeep Singh (retired), the founding Director of FCTec.