Targeting 450,000 MT of cost-effective production per year, SECI has launched tranche II of its green hydrogen incentive, inviting bids for production facilities.
On Thursday, the Solar Energy Corporation of India (SECI) issued the tender for tranche II of the green hydrogen incentive under the National Green Hydrogen Mission, targeting 450,000 metric tonnes per annum (MTPA) of green hydrogen.
A Request for Selection (RfS) was issued for green hydrogen producers to establish production facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-II), aiming to improve cost-competitiveness and promote large-scale use.
According to the RfS, document sales will end on August 21, 2024, and bids are due by August 23. Bid openings are scheduled for August 27, 2024.
The guidelines state that bidders can bid for either Bucket-I, which covers technology-agnostic pathways, or Bucket-II, which involves biomass-based pathways, or both.
For Bucket-I, bid capacities range from 10,000 MT (metric tons)/annum to 90,000 MT/annum, while for Bucket-II, they range from 500 MT/annum to 4,000 MT/annum. Each bidder, including affiliates, can bid up to 90,000 MT/annum for this tender and 225,000 MT/annum across all SIGHT Programme modes and tranches.
Furthermore, it was stated that green hydrogen production facilities can be established anywhere in India, with bidders selecting the sites. They must be operational within 36 months of receiving the Letter of Award (LoA), with penalties for delays.
Successful projects will earn direct incentives per kilogram of green hydrogen produced annually for three years from the commissioning date.
Moreover, bidders are required to provide an earnest money deposit (EMD) of ₹2,500 per MT/annum of quoted capacity, with a cumulative EMD for multiple buckets. Performance Guarantees of ₹5,000 per MT/annum must be submitted within 15 days of the Notification of Award.
The Union Cabinet has approved the National Green Hydrogen Mission with a ₹1.974 trillion budget until 2029-30. Of this, ₹1.749 billion is for the SIGHT Programme to bolster domestic electrolyser manufacturing and green hydrogen production.
