India's Green Hydrogen Incentive Program Accelerates Transition to Clean Energy
Key Ideas
  • Renewable Energy Ministry releases guidelines for green hydrogen production incentives under the SIGHT scheme's Tranche-II, aiming for 450,000 tonnes per year.
  • Solar Energy Corporation of India (SECI) to handle implementation and soon issue Request for Selection (RfS) focusing on technology-agnostic and biomass-based methods.
  • National Green Hydrogen Mission's budget of Rs 19,744 crore until FY 2029-30 seeks to make India self-reliant in clean energy, reducing carbon footprint and fossil fuel dependency.
  • India's mission to lead in green hydrogen technology and market to inspire global energy transitions, positioning the country as a clean energy leader.
India's Renewable Energy Ministry has introduced new guidelines to encourage green hydrogen production through the SIGHT scheme's Tranche-II. The initiative, announced on July 3, 2024, targets an ambitious production volume of 450,000 tonnes of green hydrogen annually. Of this total, 40,000 tonnes per year are designated for biomass-based production methods, with the remaining capacity open to all technologies. The implementation of these guidelines will be overseen by the Solar Energy Corporation of India (SECI) through the upcoming Request for Selection (RfS) process. The bidding will prioritize the lowest average incentive proposed by bidders, with specific quantity limits for different production methods. Technology-agnostic bids can range from 10,000 to 90,000 tonnes per year, while biomass-based bids have a range of 500 to 4,000 tonnes annually. Bidders have the flexibility to participate in either or both categories, with a maximum allocation of 90,000 tonnes per year per bidder. Furthermore, the National Green Hydrogen Mission, initiated on January 4, 2023, with a substantial budget allocation of Rs 19,744 crore until the financial year 2029-30, aims to enhance India's self-sufficiency in clean energy. The mission strives to lower the country's carbon footprint, reduce reliance on fossil fuels, and position India as a global leader in green hydrogen technology and market development. By fostering innovation and sustainability in the energy sector, India is poised to drive significant positive impacts on both the domestic and international clean energy landscape.
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