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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has set aside ₹44.4 billion (~$535.6 million) to incentivize manufacturing of electrolyzers to reduce costs for hydrogen production in the country, as part of the National Green Hydrogen Mission (NGHM).</p>
<p>NGHM has an <a href="https://www.mercomindia.com/cabinet-approves-%E2%82%B9197-billion-hydrogen-mission" target="_blank" rel="noopener">outlay</a> of ₹197.44 billion (~$2.3 billion) up to 2029-30. The mission seeks to promote the development of a green hydrogen production capacity of 5 million tons per year and, in the process, envisages an investment of over ₹8 trillion (~$96.5 billion) and the creation of over 600,000 jobs by 2030.</p>
<p>The incentives for spurring indigenous manufacturing, under the &#8220;Strategic Interventions for Green Hydrogen Transition (SIGHT) Program &#8211; Component I: Incentive Scheme for Electrolyzer Manufacturing Tranche &#8211; II,&#8221; will run from the financial year 2025-26 to 2029-30.</p>
<p>The program aims to make domestically made electrolyzers &#8211; a key component for green hydrogen production, internationally competitive in performance and quality and to build out its supply chains. It also intends to support both established and new electrolyzer technologies.</p>
<p>The incentive program will be implemented through the Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) as the nodal agency, according to the MNRE document. SECI will conduct a competitive bidding process to select manufacturers based on criteria like specific energy consumption of the electrolyzer produced each year for the five-year period, committed local value addition targets, and a performance-linked incentive structure.</p>
<p>The incentives have been designed in a declining structure &#8211; with the base incentive starting at ₹4,440 (~$54)/kW in the first year and tapering down annually over the five years. Actual payouts to manufacturers will be linked to performance multipliers based on the specific energy consumption achieved and the extent of domestic value addition accomplished.</p>
<p>The guidelines also stipulate that the Specific Energy Consumption (SEC) for hydrogen production should not exceed 56 kWh per kg, measured at 100% rated capacity on the DC side of the stack, with demonstration required before electrolyzer commissioning. Additionally, the electrolyzer should have a guaranteed lifespan of at least 60,000 hours, and there should be a minimum of 40% Local Value Addition (LVA) for alkaline electrolyzers and 30% for other technologies during the first year of production.</p>
<p>In a move to nurture indigenous stack technologies, the program also demarcates separate capacity buckets for established (Bucket 1 – 1,100 MW), indigenously developed (Bucket 2A &#8211; 300 MW), and smaller indigenous (Bucket 2B &#8211; 100 MW) electrolyzer manufacturing capacities. However, to ensure scale, no single bidder can be allocated more than 300 MW across tranches under this program.</p>
<p>In order to bid, the manufacturer, which can be a single company or a joint venture, must have a net worth of more than ₹10 million (~$120,000) per MW of quoted capacity for the previous financial year for Bucket 1, and ₹3 million (~$36,000) for Bucket 2.</p>
<p>The available capacity for bidding in the second tranche is 1,500 MW, with minimum bid capacities of 100 MW for Bucket 1 and 2A. In Bucket 2B, bids can range from 10 MW to 30 MW.</p>
<p>Earlier, SECI <a href="https://www.mercomindia.com/seci-invites-bids-manufacturing-under-sight-ii-program" target="_blank" rel="noopener">issued</a> a request for the selection of electrolyzer manufacturers to set up 1.5 GW of electrolyzer manufacturing capacities in India under the SIGHT program (Tranche- II).</p>
<p>Early this year, SECI <a href="https://www.mercomindia.com/reliance-jindal-adani-win-seci-electrolyzer-auction" target="_blank" rel="noopener">announced</a> the winners of the auction to set up 1.5 GW electrolyzer manufacturing capacities across India under Tranche 1 of the SIGHT program.</p>


MNRE Allocates ₹44.4 Billion for Electrolyzer Manufacturing Under SIGHT II Program


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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has laid down the incentive implementation framework for the production and supply of green ammonia at the lowest cost through a competitive selection process under Mode 2A of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.</p>
<p>Under the framework, direct incentives for green ammonia production and supply will be granted over three years from the commencement date.</p>
<p>The total outlay for the incentive program for the production of green hydrogen and its derivatives under all modes is ₹130.5 billion (~$1.57 billion).</p>
<p>In the first year, the incentive is ₹8.82 (~$0.11) /kg, ₹7.06 (~$0.085)/kg in the second year, and ₹5.30 (~$0.064)/kg in the third year.</p>
<p>The same production and supply of hydrogen and its derivatives cannot receive incentives under two different modes of the SIGHT Program.</p>
<p><strong>Implementing Agency</strong></p>
<p>The Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) will act as the implementing agency, providing support and carrying out various tasks assigned by MNRE. Its responsibilities include receiving and assessing applications, issuing acknowledgments and awards, examining incentive claims from beneficiaries, and verifying claims with prescribed documents.</p>
<p>SECI will also compile data on the program&#8217;s progress and performance and submit quarterly reports to MNRE. As an administrative charge, SECI is eligible to receive 0.5% of the disbursed incentive amount annually.</p>
<p>SECI has the authority to inspect an applicant&#8217;s production plants physically. It can seek assistance from third-party agencies to verify technical parameters. If necessary, MNRE may designate accredited labs like the National Accreditation Board for Testing and Calibration Laboratories or other third-party certification agencies for this verification.</p>
<p><strong>Capacity</strong></p>
<p>The capacity available for bidding under Tranche I of Mode 2A is 550,000 MT per annum of green ammonia. Additional capacity of green ammonia, if any, may be decided by MNRE for subsequent tranches.</p>
<p>SECI may specify a minimum capacity below which bids will not be accepted. SECI may also specify a cap or maximum capacity that can be allocated to a single bidder.</p>
<p>Any unallocated capacity during the tranche could be carried over to the subsequent tranche.</p>
<p>Incentive payout in a given year = (Incentive for that year in ₹/kg of Green Ammonia) x (Allocated capacity or Actual Production and supply in the year, in kg, whichever is lower)</p>
<p>Allocated capacity will remain constant for three years. Incentives will be disbursed to each successful bidder on an annual basis after the requisite claim is received and duly verified by MNRE through SECI.</p>
<p><strong>Green Hydrogen Standard</strong></p>
<p>To qualify for incentives, the bidder must adhere to the &#8216;National Green Hydrogen Standard&#8217; set by MNRE when using green hydrogen in the production and supply of green ammonia. The quantity is calculated at 0.1765 kg of green hydrogen per kg of green ammonia, influencing both the green hydrogen quantity and the corresponding incentive for a specific amount of green ammonia.</p>
<p><strong>Eligibility</strong></p>
<p>Bidders must have a net worth equal to or greater than ₹50 million (~$601,181)/ 1,000 MT/ Annum of quoted production and supply capacity of green ammonia as of the last date of the previous financial year.</p>
<p>Bidders can be a single company, a joint venture, or a consortium of more than one company.</p>
<p><strong>Penalties</strong></p>
<p>Bidders must submit earnest money deposit (EMD) as specified in the tender document during bid submission, with provisions detailing EMD forfeiture if the selected bidder refuses to submit required documents, performance bank guarantees (PBG), or similar instruments or if eligibility criteria are not met.</p>
<p>Successful bidders are required to submit PBGs or other performance guarantee instruments upon accepting the award, with potential forfeiture in case of default or delayed commissioning. The tender document will outline specific modalities, and SECI will remit any encashment of EMD or guarantees to the Consolidated Fund of India.</p>
<p>Successful bidders must sign an Agreement of Power Purchase (APA) with procurers and adherence to the APA terms is linked to the disbursement of incentives.</p>
<p><strong>Monitoring</strong></p>
<p>A program monitoring committee, co-chaired by the Secretary of the Department of Fertilizers and the Secretary of MNRE, with the Mission Director of the National Green Hydrogen Mission and other necessary experts as members, will regularly assess the progress and performance of Green Ammonia production and supply capacities established under the program.</p>
<p>The committee&#8217;s role includes identifying and recommending measures to address any challenges or difficulties encountered during the implementation of the program.</p>
<p>Last June, MNRE <a href="https://www.mercomindia.com/ministry-175-billion-program-green-hydrogen/" target="_blank" rel="noopener">released</a> a framework document outlining incentive programs for the manufacturing of electrolyzers and the production of green hydrogen within the country, with a combined financial outlay of ₹174.9 billion (~$2.1 billion).</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>


Government Announces Incentives to Produce 550,000 MT of Green Ammonia


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					</table><p>Solar Energy Corporation of India (<a href="https://www.seci.co.in/" target="_blank" rel="noopener">SECI</a>) has invited bids to select green hydrogen producers for setting up 450,000 metric tons (MT)/annum production facilities for green hydrogen across India under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program (Mode-I, Tranche-I).</p>
<p>The SIGHT program is a significant financial measure under the National Green Hydrogen Mission, with an outlay of ₹174.9 billion (~$2.12 billion).</p>
<p>The last date to submit the bids is September 7, 2023. Bids will be opened on September 12.</p>
<p>Bidders will have to submit ₹1.5 million (~$18,146) + applicable GST as the bid processing fee. They must pay ₹2,500 (~$30.24)/MT of the quoted capacity as an earnest money deposit.</p>
<p>Also, the successful bidder will have to furnish an amount equivalent to ₹5,000 (~$60.49)/MT of the allocated capacity as a performance bank guarantee within 15 days of receiving the letter of award from SECI.</p>
<p>Under this tender, the green hydrogen producer will be required to set up production facilities in thousand metric tons (TMT) scale for the production of green hydrogen and its derivatives, with the primary objective to promote and maximize the production of green hydrogen and its derivatives in India to enable rapid scale-up, technology development, and cost reduction.</p>
<p>The bidder can opt for any one or both of the following buckets:</p>
<ul>
<li>Bucket-I: Technology Agnostic Pathways</li>
<li>Bucket-II: Biomass-based Pathways</li>
</ul>
<p>The total capacity under Bucket-I is 410,000 MT/annum of green hydrogen, and the total capacity under Bucket-II is 40,000 MT/annum.</p>
<p>The projects should be quoted in multiples of 500 MT only.</p>
<p>The minimum capacity allocated under Bucket-I is 10,000 MT/annum, and the maximum capacity is 90,000 MT/annum. Similarly, the minimum capacity allocated under Bucket-II is 500 MT/annum, and the maximum capacity is 4,000 MT/annum.</p>
<p>The projects must be commissioned within 30 months from the date of receiving the letter of award.</p>
<p>Any bidder from a country that shares a land border with India will be eligible to bid in this tender only if the bidder is registered with the competent authority.</p>
<p>To be eligible, the net worth of bidders as of the last day of the previous financial year should be at least ₹150 million (~$1.81 million)/thousand MT for Bucket-I and ₹15 million (~$181,463)/thousand MT for Bucket-II.</p>
<p>The production facilities awarded under this tender will be eligible for getting direct incentives by SECI in ₹/kg of green hydrogen production on an annual basis for three years from the date of commencement of green hydrogen production.</p>
<p>The incentive payout to the green hydrogen producer will be calculated as follows:</p>
<p>Incentive payout in a given year = [(Incentive quoted for that year in ₹/kg) x (Allocated capacity or Actual production in the year, in kg, whichever is lower)].</p>
<p>In another tender, SECI <a href="https://www.mercomindia.com/seci-rfs-1-5-gw-electrolyzer-manufacturing" target="_blank" rel="noopener">issued</a> a request for selection (RfS) of electrolyzer manufacturers for setting up 1.5 GW of electrolyzer manufacturing capacities in India under Tranche-I of the SIGHT program.</p>
<p>Earlier, MNRE had <a href="https://www.mercomindia.com/ministry-175-billion-program-green-hydrogen" target="_blank" rel="noopener">released</a> a framework document outlining incentive programs for the manufacturing of electrolyzers and the production of green hydrogen within the country, with a combined financial outlay of ₹174.9 billion (~$2.12 billion).</p>
<p>Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of real-time tender activity.</p>


SECI Invites Bids to Set Up 450,000 MTA of Green Hydrogen Production Facilities

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