India’s endeavour to lead the global energy transition would require sustainable technological solutions to take centre stage in today’s industrial and transportation landscape. Newtrace, an innovative climate-tech startup, with a purpose-driven vision to revolutionise green hydrogen (GH2) production at scale is swiftly making its way to the forefront of this transition. Newtrace’s proprietary electrolyser technology aims to address the pressing challenges of cost, supply chain, scalability, and efficiency, with the overarching goal of realising a truly sustainable, greener future for the planet.
Hydrogen (H2) is a major source of fuel and a key raw material in hard-to-abate large-scale industries. Traditional methods of hydrogen production are highly CO2 intensive. For example, production through methods such as steam-methane reforming (at U$2-3 / kg) emits over 900 million tonnes (Mt) of CO2 for every 94 Mt of H2 currently produced (aptly named ‘grey hydrogen’). Cleaner methods of hydrogen production—although more sustainable—are highly priced (at US$6-7/kg) due to the use of critical and hard-to-procure materials in the electrolyser technology. The hydrogen thus produced is termed ‘green hydrogen’.
Newtrace’s proprietary electrolyser technology aims to address the pressing challenges of cost, supply chain, scalability, and efficiency, with the overarching goal of realising a truly sustainable, greener future for the planet.
As a result, while hydrogen is undoubtedly a cleaner fuel, current production methods are either carbon-heavy or present several bottlenecks (for example, cost, supply chain, etc.) to achieve wide-scale adoption. To counter these challenges, Newtrace is solving for an improved production method of hydrogen that is low in carbon emissions, affordable, and massively scalable. This led to the idea of Newtrace’s next-gen electrolysers that use renewable electricity and water as inputs, and utilise no rare earth metals in their composition. The resulting green hydrogen is sustainable and cost-effective.
The importance of cleansing the hydrogen production value chain is gaining prominence due to increased industrial, political and social awareness, largely due to the exacerbated impacts of climate change. The shift is further bolstered by supportive government regulations, long-term investments in renewable energy, the emergence of the circular economy, and sustainable infrastructure, along with technological advancements that have made clean energy innovations more accessible and affordable. For instance, the National Green Hydrogen Mission brought into effect in January 2023, is a remarkable initiative by the Government of India to position the country as a frontrunner in the production, adoption and export of green hydrogen over the next decade.
The importance of cleansing the hydrogen production value chain is gaining prominence due to increased industrial, political and social awareness, largely due to the exacerbated impacts of climate change.
Embracing sustainable hydrogen production and utilisation will be crucial for both economic prosperity and fostering a cleaner and more sustainable future. Newtrace, with its cutting-edge electrolyser technology, aims to contribute significantly to this fight against climate change while simultaneously bolstering India’s energy security aspirations.
Electrolysers are devices that use electricity to split water into hydrogen (H2) and oxygen (O2), after which hydrogen gas is collected and used for a multitude of industrial applications. What sets Newtrace’s electrolysers apart is its patented, cutting-edge technology that delivers up to 60 percent reduction in overall production costs, while its modular design ensures scalability. The design seamlessly integrates pioneering precision fluid engineering technology to split water into H2 and O2, aided by an enhanced electrocatalyst that eliminates the need for rare earth metals. The technology is not only cost-effective but also promotes sustainable manufacturing operations owing to zero dependency on a long, complex supply chain. Lastly, the employment of modern automated manufacturing has drastically reduced the prototype development and testing cycles, thereby shortening lengthy turnaround times and complexities in new product development. For example, a vast spectrum of critical and complex designs is rendered by leveraging 3D printing at scale.
Growth in R&D remains one of our top focuses as we move into commercialised production. Rapid progress is being made in establishing state-of-the-art labs, keeping future expansions in mind. Our facility is equipped to handle upcoming developments in the hydrogen market as well as the associated demand it is expected to generate. Our R&D activities have resulted in the development of a highly efficient electrocatalyst, alongside ongoing iterations of the modular stack. The team is also working on the scaling up of the Balance of Plants (BoP) for large-scale hydrogen production. We are growing our current team of 30 to ~50 by the end of 2023. Our focus is on building a strong product team across domains in electrochemistry, stack engineering, software development, and manufacturing. We are also enhancing our operational and deployment capabilities as well as building a strong business development team for the global market.
The design seamlessly integrates pioneering precision fluid engineering technology to split water into H2 and O2, aided by an enhanced electrocatalyst that eliminates the need for rare earth metals.
India’s energy transition is squarely resting on the shoulders of the emerging indigenous technology development landscape. The country’s ambitious goal to produce 5 Mt of GH2 per annum by 2030 demands scalable and efficient technologies and infrastructure. Newtrace’s cost-effective, scalable electrolyser solution could boost India’s capabilities in undertaking large-scale GH2 projects that eliminate carbon emissions at an industrial scale—a step of utmost significance in abating climate change to achieve our net-zero target.
While the hydrogen ecosystem presents a plethora of opportunities to diversify our operations in the future, Newtrace is currently dedicated to offering technology for green hydrogen production in an affordable and scalable manner. Eventually, we look forward to coming together with key players in hydrogen storage, transport, and distribution, allowing for a wide spectrum of opportunities for collaborative expansion of the hydrogen ecosystem.
While Newtrace’s vision is promising, the path to widespread adoption faces some key challenges. The primary hurdle lies in bridging the funding gap in technology development, manufacturing and large-scale green hydrogen projects. Large-scale project deployments would invariably involve conducting small-scale pilots, in addition to addressing the integration needs with end users of GH2.
Policymakers and investors must collaborate to create conducive policy frameworks and financial incentives, encouraging startups like us to build, iterate and improve our products during their initial stages. Specialised financing such as Production Linked Incentive (PLI) schemes for green hydrogen production and electrolysers are a vital step towards initiating momentum but often neglect opportunities to support novel indigenous technology development and adoption in this sector.
The primary hurdle lies in bridging the funding gap in technology development, manufacturing and large-scale green hydrogen projects.
Furthermore, India’s industrial sectors also need to step up and embrace emerging technologies and startups. The norms of engagement must evolve to support emerging startups and their technologies, which organisations such as the Indian Space Research Organisation have done commendably for the space-tech sector. Simplified and efficient banking procedures, particularly for startups with proven potential, will expedite project execution and help startups avoid penalties due to prolonged production timelines.
To overcome supply chain challenges for indigenous technology development, a robust network of manufacturers and vendors should be developed. Newtrace’s approach of conducting in-house designing and research while collaborating with vendors for manufacturing and capability enhancement could serve as a robust model for other startups. Moreover, the development of the vendor ecosystem is a time-intensive, yet very critical step towards Atmanirbhar Bharat. Additionally, a feedback-driven approach that involves industry stakeholders in technology customisation would result in more adaptable solutions that align with diverse hydrogen usage requirements.
Newtrace’s journey in the green hydrogen space exemplifies the spirit of innovation and determination that India’s energy transition demands. Amidst rapid technological advancements and financial considerations, Newtrace’s technology has the potential to play a transformative role in shaping India’s clean energy landscape. In providing clean and sustainable energy solutions, the company aims to improve lives, empower communities, and foster environmental stewardship. Alongside continued support from policymakers, investors and industry stakeholders, Newtrace and our startup contemporaries can forge a path towards a greener, cleaner, and brighter future for India and the world.
Prasanta Sarkar is the Co-founder and CEO of New Trace.
Anindita Mukherjee works in the Founders’ Office at Newtrace.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
PREV
