The Solar Energy Corporation of India (SECI) has invited bids for the selection of green hydrogen producers to set up production facilities for green hydrogen in India under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Program (Mode-1-Tranche-II).

The last date to submit bids is August 21, 2024. Bids will be opened on August 27.

Bidders must submit a non-refundable document fee of ₹25,000 (~$299.3) and a bid processing fee of ₹20,000 (~$239.4)/MW for the quoted capacity subject to a maximum amount of ₹1.5 million (~$17,963.4) + GST.

The Green Hydrogen Producer (GHP) will be mandated to establish production facilities for green hydrogen and its derivatives. The main goals are to facilitate rapid expansion, advance technology, and reduce production costs of green hydrogen and its derivatives in India.

To maximize the production of green hydrogen and its derivatives, improve cost competitiveness, and promote large-scale utilization, the bidder may choose to bid for one or both of the following categories:

• Technology Agnostic Pathways
• Biomass Based Pathways

The total capacity to be allocated under this tender is 450,000 MT per annum of green hydrogen (GH2).

Bidders must submit a single bid undertaking to set up GH2 production facilities. The projects must be quoted in multiples of 500 MT/annum only. The quoted capacity should remain constant over the first three years from the start of commercial production (in Thousand Metric Tonnes (TMT)).

For Technology Agnostic Pathways (Bucket-I), the minimum bid capacity is 10,000 MT per annum, and the maximum bid capacity is 90,000 MT per annum.

For Biomass Based Pathways (Bucket-II), the minimum bid capacity is 500 MT per annum, and the maximum bid capacity is 4,000 MT per annum.

The allocated capacity shall remain constant for three years from the issuance of Letters of Award (LoA).

The projects can be set up anywhere in India at locations the producer chooses at its own discretion, cost, risk, and responsibility. They are also free to change the project location during the execution of the project or construction period.

The producer is required to submit a Quarterly Progress Report to SECI, detailing the project progress updates with respect to the aforementioned parameters, and providing reasons for any delays, if applicable.

MNRE/SECI and/or its authorized agency will have the right to physically inspect the GHP’s production facilities and offices.

The green hydrogen production facilities will have 36 months from the date of issuance of the LoA to commission the full production capacity.

The net worth requirement for bidders, as of the last date of the previous financial year (FY 2023-24), must meet or exceed the following values based on the quoted production capacity of green hydrogen:

• For Bucket-I (Technology Agnostic Pathways): ₹150 million (~$1.79 million) per thousand metric tonnes (MT) per annum of quoted production capacity of green hydrogen.
• For Bucket-II (Biomass Based Pathways): ₹15 million (~$179,656) per MT per annum of quoted production capacity of green hydrogen.

The Ministry of New and Renewable Energy recently issued guidelines for incentive disbursement for up to 450,000 metric tons per annum of green hydrogen production under Component II of the SIGHT program.

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