The government will solicit the first round of bids for both the creation of green hydrogen (Bids for GH2) and the manufacture of electrolysers in the first half of FY24. “We anticipate announcing the bid this quarter itself. Nevertheless, if it doesn’t. We will undoubtedly release the initial bids for both the generation of green hydrogen and the manufacture of electrolysers in the first half of 2023–2024“, according to the source.
MNRE is seeking stakeholder opinion on the green hydrogen bid process.
The draught notice for bids, according to the source, is prepared and has already been distributed. “There have been numerous remarks. Stakeholder meetings are currently scheduled. They are providing us with input”, the source added.
The government anticipates 3.6 million tonnes of hydrogen production capacity under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme under the National Green Hydrogen Mission in the following three years, with incentives covering 10% of the cost incurred on producing green hydrogen (at Rs 30 per kg). For the following five years, the government also intends to support 3,000 MW of annual electrolyser manufacturing capacity. The government intends to use an annual competitive bidding process to gradually lower the amount provided as support to industry leaders.
Eariler, Gujarat had started the eagerly awaited Hydrogen Valley Project to create a localized hydrogen value chain that benefits many end markets or applications in the fields of energy, manufacturing, and transportation.
The National Green Hydrogen Mission’s initial outlay was authorised by the Union Cabinet in January of this year for Rs 19,744 crore. Of this, Rs 17,490 crore was allotted through SIGHT to increase domestic manufacturing.
The government wants to increase India’s capacity to produce green hydrogen to at least 5 MMT annually by 2030, along with installing a total of about 450 GW of renewable energy capacity at that time.
Source: PSU Watch
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