Government Issues Guidelines for 450,000 MTPA Green Hydrogen Production

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The Ministry of New and Renewable Energy (MNRE) has released guidelines for disbursement of incentives for the production of up to 450,000 metric tonnes (MT) per year of green hydrogen as part of Component II (Mode 1, Tranche II) of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. The Solar Energy Corporation of India (SECI) has been assigned the responsibility of supervising the competitive bidding process and managing the implementation of the programme. Green hydrogen producers will receive incentives over three years, with limits set at Rs 50 per kg in the first year, Rs 40 per kg in the second year, and Rs 30 per kg in the third year. For products derived from green hydrogen, such as green ammonia, incentives will be allocated based on the amount of green hydrogen used in their production. MNRE has determined an equivalence factor of 0.1765 kg of green hydrogen per kg of green ammonia.

The programme’s auctions will be divided into two categories. It includes Bucket 1 of technology agnostic pathways with a capacity of 410,000 MT per year, and bucket II of biomass-based pathways offering 40,000 MT per year. A single bidder can be awarded a maximum capacity of 90,000 MT per year, with a minimum capacity requirement of 10,000 MT for Bucket I. For Bucket II, the maximum capacity is limited to 4,000 MT per year, with a minimum capacity of 500 MT per year. Bidders are eligible to submit bids for either bucket or both.

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