Clean-energy sector of India going through a major transition

The clean-energy sector of India is going through a major transition, “where it is being replaced by green hydrogen, green ammonia, and large-scale renewables,” says Ratan Bokadia, Managing Director, Oswal Energies in an exclusive interaction with Bizz Buzz.

The clean-energy sector in India is undergoing a major transformation, from traditional hydrocarbon to green hydrogen, ammonia, and renewables. How do you assess the current industry landscape, and what key shifts are you seeing?

The clean-energy sector of India is going through a major transition where it is being replaced by green hydrogen, green ammonia, and large-scale renewables. The present scenario is practically execution-oriented and is supported by well-defined policies and fast project installations. Among the three changes, the most important are the speeding up of the green hydrogen and ammonia infrastructure, the incorporation of digital technologies in EPC and process automation, and the stronger partnership between public and private sectors to develop sustainable energy assets. All these trends depict the sector moving from intention to impact, thus creating the chance to import the essential infrastructure for the future of India’s clean energy.

With India’s national targets around green hydrogen and decarbonization, what do you believe are the biggest challenges (policy, infrastructure, supply chain, technology) that companies in your sector face today?

The biggest challenges are structural and interconnected. The country still has not established a comprehensive infrastructure for hydrogen storage, transportation, and high-pressure application on a large scale. The need for localization of electrolyzers and other vital green-hydrogen parts is urgent, as it will lessen the reliance on imports. On the policy side, the execution speed, standards, and financing frameworks have to be at par with the rising investment momentum. We take the initiative to plug these gaps through our global partnerships that are technically innovative and through our in-house modular fabrication facility, which allows us to provide faster, cost-effective, and locally produced solutions in line with India’s decarbonization goals.

From an EPC provider/manufacturing perspective, how do you view the convergence of old energy (oil & gas, hydrocarbon) and new energy (green hydrogen, methanol, ammonia) in India? What role can a company like yours play in bridging that transition?

From an EPC provider/manufacturing standpoint, the merging of hydrocarbons with green hydrogen, methanol, and ammonia has been viewed from an EPC (Engineering, Procurement, Construction) and manufacturing perspective as a natural evolution rather than a disturbance. The engineering rigor, safety culture, and process discipline developed over the years in oil & gas continue to be the main source of strength for the new-energy projects. This depth of proven execution capability, robust safety systems, and modular design expertise we are applying to deliver green hydrogen, green methanol, and green ammonia assets. In this light, we see ourselves as a transition enabler, combining the credibility of traditional EPC with the innovation that is needed for India's clean-energy future.

How important is localization (Make in India) in this energy transition, and what are your thoughts on global partnerships vs. domestic capability building in this industry?

Localization is the key to India's clean-energy transition, but it has to work with other strategies if it is to succeed. Manufacturing in India will decrease costs, make delivery quicker, and create reliance on the country in the long run. The plant in Gujarat, which has been certified by ASME, plays a vital role in the commitment to the government initiative as it makes it possible to have the local fabrication of complex items like skids, heat exchangers, and modular process systems. At the same time, the collaboration with internationally recognized companies such as Sinclair Energy (UK) and EnerSol (USA) allows the use of the best technologies in storage, automation, and carbon capture. Thus, we are able to maintain our global competitiveness while, at the same time, supporting the development of India's clean-energy ecosystem.

When you founded or took leadership of Oswal Energies, what was the original vision? How has that vision evolved as the company has grown in both hydrocarbon and green-energy segments?

The original vision was to create a company that delivers world-class engineering and project execution for India’s energy infrastructure. Over the years, that vision has evolved from being an EPC player in hydrocarbons to becoming a technology-driven clean energy integrator. Today, our goal is to bridge traditional and renewable energy, offering end-to-end EPC solutions in hydrogen, carbon capture, and sustainable industrial systems.

How have you leveraged your hydrocarbon engineering, procurement, and construction (EPC) experience to enter this emerging sector?

The hydrocarbon EPC experience has offered us three main pillars: the profound process discipline founded on safety, the advanced capability in modular skid fabrication, and the established trust with global energy clients. These strengths have been transferred to the clean energy area directly, where we have been applying the same engineering precision to hydrogen plants, green methanol units, and carbon-capture systems. This stronghold gets rid of the usual learning curve and permits us to scale new-energy projects with assurance, quality, and speed.

On the green hydrogen front, you’ve announced an investment of about ₹320 crore over the next two years, and you’ve taken delivery of your first 1 MW electrolyser under a 20 MW BOT model. What next?

Yes, this investment highlights our consistency with India's National Green Hydrogen Mission and our long-term hydrogen infrastructure commitment to building big. The green hydrogen plant that we are going to build in Gujarat is going to have a capacity of 20 MW and will be supported by modular units of 0.5 MW to 5 MW which will allow for deployment flexibility.

We are forming a complete value chain from manufacturing to compression and transport through our collaborations with Greenzo Energy for electrolyser production and Sinclair Energy (UK) for advanced hydrogen storage systems.

Local manufacturing strength combined with global technological expertise is the reason why hydrogen solutions are reliable and future-ready.

Given the shift in your business mix, how are you balancing your legacy hydrocarbon/EPC business with your newer clean-energy initiatives? What kind of resource allocation (capex, talent, and tech) is happening internally?

A well-thought-out dual-track strategy is how we are handling this transition. The hydrocarbon EPC division is servicing the same longtime clients with the same reliability and performance strength, thus securing the stability of the business. On the other side, the clean-energy division is directing its attention to the areas of hydrogen, carbon capture, waste-to-energy, and desalination, which are a major part of the engineering and technology teams’ focus. A strong investment in R&D, automation, and the upskilling of talent has been made by us internally. Nearly 40% of our capex plan for the next two years is directed towards the clean-energy projects, and the integration between fabrication, engineering, and emerging technologies is being done with the help of cross-functional teams.

Looking ahead over the next 3–5 years, what are the key growth areas for Oswal Energies—in terms of technologies (e.g., hydrogen, methanol, ammonia, and desalination), geographies, and scale of projects?

Our growth in the next three to five years is going to be based on four strategic areas. First, the green hydrogen and green ammonia production infrastructures will be expanded in India and the Middle East. Secondly, carbon capture and utilization will be the primary demand in refineries and chemical plants. Third, desalination and waste-to-energy will be the main areas of attention for both the industrial and municipal clients. Finally, digital EPC capabilities will be developed, and modular fabrication exports to Africa, Europe, and Southeast Asia will be increased. With these endeavors, we aim at making Oswal Energies a major global EPC partner for clean, integrated industrial ecosystems.

Growing into green hydrogen and related fields involves new risks: regulatory, technological, execution, and supply chain. What are the major risks you anticipate, and how are you setting up for mitigation?

Every emerging sector brings uncertainties, and we address them through a mix of strategic planning, strong partnerships, and in-house control. On the regulatory fronts, we see to it that each and every project is in line with the national frameworks, and we are carrying on a regular dialogue with the regulatory agencies so as to be always prepared for the changes in policies. We have the technology risk under control via our consortium with world-class companies such as Sinclair Energy (UK) and EnerSol (USA) that provide us with access to already deceased, scalable solutions. The risk in the implementation is countered through our facilities for in-house production, which allow us to maintain total control over the quality, durations, and delivery in modules. If any problems come up with the supply chain, we are taking steps to localize the crucial components and also to have a list of alternative vendors to rely on, which will in turn lessen the dependence on imports. This overall approach has together made it possible for us to manage unpredictability with great clarity and self-assurance.