Energy Notes 12/04: India’s First FBR, Energy GCCs, And An IPO
India’s first Prototype Fast Breeder Reactor (PFBR) in Kalpakkam will be operational by September 2026, marking the start of the second stage of India’s three-stage nuclear programme. This stage uses Fast Breeder Reactors (FBRs) to produce U-233 from spent fuel used in the first stage. U-233 is combined with thorium in an Advanced Heavy Water Reactor (AHWR) to generate a sustainable nuclear fuel cycle in the final stage.
FBRs are vital for bridging the gap between India’s limited uranium supply and its abundant thorium reserves. However, commercializing FBRs remains a distant goal, making it unlikely that India will meet its 2047 target of generating 100 MWe from nuclear energy. The PFBR will be the world’s third operational fast breeder reactor.
India’s Energy GCCs Are A Success But Its Local Industry Has A Skills Gap
India is quietly becoming the brain behind global energy innovation—even as its own workforce grapples with churn and skill gaps. A new report from consulting firm Ernst & Young (EY) charts India’s growth as a destination for energy global capability centers (GCCs). India is home to more than 20 energy GCCs spread across Bengaluru, Chennai, and Pune. They employ more than 20,000 people in the country. At the India Energy Week in February, leading oil and gas majors praised their India GCCs for their engineering and digital solutions.
While GCCs augment and work with cutting-edge engineering solutions for multinational companies, the story is different at home. The sector was responsible for 8.5 million jobs, around 1.5 percent of total employment, in 2023. India’s renewable energy sector has added jobs at a rapid clip.
However, attrition rates are high: they were above 33 percent last fiscal and are expected to touch almost 40 percent this year. There is also a skills gap in the industry, which relies mainly on vocational and skills-based training.
India’s Biggest Renewable Energy IPO
The biggest Initial Public Offering (IPO) for a renewable energy company in India will happen soon. According to reports, INOX Clean Energy is expected to file a draft red herring prospectus with SEBI. There’s not much detail available about INOX’s energy division.
Revenues for INOX India, the conglomerate that owns its clean energy division, shot up by 17 percent last year. Funds from the IPO will be used to set up new solar facilities and Independent Power Producer (IPP) facilities.
INOX, of course, has a higher profile as the operator of cinema halls than a green energy company. INOX Clean Energy has a fully-integrated model for renewable energy, meaning it not only manufactures components but also uses them to power infrastructure and supply power to customers. The company has also made forays into natural gas as an operator of mini-LNG terminals to supply power in small islands like The Bahamas. INOX’s terminals are modular and can be built anywhere in the world at a fraction of the cost it takes to build a massive LNG processing plant, the company claims.
