India Launches Second Green Hydrogen Subsidy Tender for 450,000 Tonnes Annually
In a significant move to advance its clean energy goals, the Ministry of New and Renewable Energy (MNRE) in India has unveiled the details of its second tender under the ambitious scheme for incentivizing green hydrogen production. This announcement follows the successful completion of the first auction and sets the stage for a substantial increase in the country’s green hydrogen production capabilities.
[INSERT_TEXT]
The latest tranche of the subsidy scheme, part of the “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1) – Tranche-II,” aims to support the production of 450,000 tonnes of green hydrogen annually. The scheme, as notified by the MNRE on July 3, 2024, maintains the established subsidy rates, offering up to 50 rupees ($0.60) per kilogram of green hydrogen produced in the first year. The subsequent years will see the subsidy rates adjust to 40 rupees for the second year and 30 rupees for the third year.
Funding Allocation and Bidding Process
The allocation for this second tranche is categorized into two funding buckets, designed to foster both large-scale and experimental green hydrogen projects. Prospective bidders have the opportunity to apply for one or both buckets, subject to a maximum capacity limit of 90,000 TPA per bidder. This competitive process requires bidders to propose the least average incentive they would accept, ensuring a cost-effective expansion of India’s green hydrogen production capacity. The Solar Energy Corporation of India (SECI), which played a crucial role in the initial tranche, will continue to administer the scheme, with the Request for Selection (RfS) documents expected to be released soon.
Strategic Impact and Future Goals
The National Green Hydrogen Mission, initiated on January 4, 2023, with an allocation of Rs. 19,744 crores till the financial year 2029-30, acts as the foundation of these subsidy tenders. This mission aligns with India’s broader strategy to attain energy self-reliance and position itself as a leader in the global transition towards clean energy. By actively promoting the development and utilization of green hydrogen, India aims to significantly decarbonize its economy, reduce its reliance on fossil fuel imports, and achieve technological as well as market leadership in this emerging energy sector.
The efforts under the National Green Hydrogen Mission and subsequent subsidy tenders represent critical steps towards restructuring India’s energy framework for a sustainable future. As the country positions itself as a vanguard in the clean energy revolution, the continued support and expansion of the green hydrogen sector are pivotal to achieving the nation’s ambitious environmental and economic objectives.
