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India Launches Second Green Hydrogen Subsidy Tender for 450,000 Tonnes Annually

By July 5, 2024 2   min read  (362 words)

July 5, 2024 |

2024 07 05 08 48 39 1 e1720187352209
  • New Tender Offers Subsidies Up to $0.60/kg for Green Hydrogen Production with SECI as Implementing Agency
  • India Introduces Second Green Hydrogen Subsidy Tender Under SIGHT Programme

The Ministry of New and Renewable Energy (MNRE) announced the details of the second tranche of the incentive scheme for green hydrogen production, capped at a total annual production of 450,000 tonnes. This follows the successful first auction, which was completed in January, maintaining the subsidy rates previously set, with winning projects receiving up to 50 rupees ($0.60) per kilogram of green hydrogen produced in the first year, 40 rupees in the second year, and 30 rupees in the third year.

The Scheme Guidelines for the implementation of “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1) – Tranche-II” were officially notified by the MNRE on July 3, 2024. The Solar Energy Corporation of India (SECI) will once again serve as the implementing agency for this tranche.

Funding Allocation and Bidding Process

The second tranche’s capacity is distributed across two distinct funding buckets:

  • Bucket I (Technology-Agnostic Pathways): This segment of the tender allows for the largest capacity bids, ranging from a minimum of 10,000 tonnes per annum (TPA) to a maximum of 90,000 TPA.
  • Bucket II (Biomass-based Pathways): Specifically reserved for biomass-based green hydrogen production, with capacities ranging from 500 TPA to 4,000 TPA.

Bidders have the flexibility to submit proposals for one or both buckets, with the maximum allowable capacity for a single bidder set at 90,000 TPA. The bidding will be competitive, based on the least average incentive quoted by the bidders. SECI is expected to issue the Request for Selection (RfS) documents shortly.

Strategic Impact and Future Goals

The National Green Hydrogen Mission, launched on January 4, 2023, with a budget of Rs. 19,744 crores up to FY 2029-30, underpins these initiatives. The mission supports India’s objective to achieve self-reliance through clean energy development and to inspire global clean energy transitions. By facilitating substantial decarbonization of its economy, reducing dependence on fossil fuel imports, and promoting technological and market leadership in green hydrogen, India is setting a robust framework for its future energy landscape.

 

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