The Solar Energy Corporation of India Limited (SECI) has issued a request for the selection of electrolyzer manufacturers for setting up 1.5 GW of electrolyzer manufacturing capacities in India under strategic interventions for the green hydrogen transition (SIGHT) program (Tranche- II).

The last date for the submission of bids is April 30, 2024. Bids will be opened on May 3.

Bidders must pay a non-refundable fee of ₹25,000 (~$301.57) + GST and ₹1.5 million (~$18,094.4) + GST as a bid processing fee.

Bidders must pay an earnest money deposit of ₹740,000 (~$8,926)/MW.

Selected bidders are required to submit a performance bank guarantee valued at ₹1.48 million (~$17,851.42)/MW corresponding to the manufacturing capacity allocated to them.

The total capacity is segmented into distinct buckets.

Under Bucket 1, the electrolyzer manufacturing capacity can be based on any stack technology for 1,100 MW, and under Bucket 2A, the 300 MW offered must be developed based on indigenously developed stack technology. Under 2B, the 100 MW electrolyzer manufacturing capacity must be based on indigenously developed stack technology smaller units.

Bidders are permitted to bid for all three buckets. Evaluation of bids will prioritize Bucket 2B first, with any unallocated capacity shifted to Bucket 2A. Subsequently, Bucket 2A will be evaluated, and any remaining unallocated capacity in this bucket will be transferred to Bucket 1. Evaluation of Bucket 1 bids will occur last in the process.

The minimum bid capacity under Bucket 1 and 2A is 100 MW, and the maximum is 300 MW, whereas, under Bucket 2B, the minimum bid capacity is set at 10 MW and a maximum of 30 MW.

If multiple bids are received from the same entity, all bids submitted by a company, including its parent, ultimate parent, affiliates, or group companies, will be deemed invalid.

However, in the case of a joint venture company or consortium, a partner or company may collaborate with another partner or company for manufacturing capacity in one bid only.

The MNRE announced incentives for the projects designed in a declining structure – with the base incentive starting at ₹4,440 (~$54)/kW in the first year and tapering down annually over the five years.

The electrolyzer’s guaranteed life must be a minimum of 60,000 hours, ensuring operational longevity. Additionally, its end-of-life efficiency should not decline below 80%, maintaining optimal performance throughout its lifespan. The Specific Energy Consumption of the projects must be equal to or less than 56 kWh/kg of hydrogen production.

For alkaline electrolyzers, the local value addition percentage must be 40%, 50%, 60%, 70%, and 80% for years one to five; for Proton Exchange Membrane/ Solid Oxide Electrolyser/ Anion Exchange Membrane Electrolyser/any other technology, the local value addition percentage must be 30%, 40%, 50%, 60% and 70% for years one to five.

The electrolyzer manufacturing facilities established under this tender will be granted a period of 30 months from the date of issuance of the letter of award (LoA) to complete the commissioning of the full manufacturing capacity.

The manufacturing facilities awarded under this tender will be eligible for quarterly incentives on sales of electrolyzers for five years from the commissioning date.

The bidder’s net worth, as of the conclusion of the preceding financial year (FY 2022-23), must be at least ₹10 million (~$120,619)/MW of the quoted annual manufacturing capacity for Bucket 1 or 2A. For bidders engaging in Bucket 2B, the minimum net worth prerequisite is ₹3 million (~$36,185)/MW of the quoted manufacturing capacity.

Early this year, SECI announced the winners of the auction to set up 1.5 GW electrolyzer manufacturing capacities across India under Tranche 1 of the SIGHT program.

Mercom reported in January on SECI’s auction to set up 450,000 metric tons/annum production facilities for green hydrogen in India.