India Encourages Green Hydrogen Production Through SECI's RfS Initiative
Key Ideas
  • SECI issues RfS for green hydrogen production facilities under the SIGHT Scheme to incentivize domestic manufacturing of electrolyzers and green hydrogen, aiming for rapid scale-up and cost reduction.
  • The National Green Hydrogen Mission approved by the Union Cabinet allocates ₹17,490 crore to the SIGHT Programme, supporting the establishment of green hydrogen production facilities in India.
  • Bidders in the RfS must adhere to capacity guidelines, with incentives provided for successful projects based on the quantity of green hydrogen produced annually over three years.
  • This initiative is expected to catalyze the green hydrogen sector in India, allowing for greater technology development, economic growth, and alignment with national green energy objectives.
The Solar Energy Corporation of India (SECI) has initiated a process to promote green hydrogen production by issuing a Request for Selection (RfS) for producers to establish production facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. This move is part of the National Green Hydrogen Mission sanctioned by the Union Cabinet with a budget of ₹19,744 crore until 2029-30. A substantial portion of this budget, ₹17,490 crore, is dedicated to the SIGHT Programme to encourage indigenous manufacturing of electrolyzers and green hydrogen production. The primary goal is to facilitate quick expansion, technological advancements, and cost efficiencies in the green hydrogen sector. The RfS sets out guidelines for bidders, including the capacity available for bidding and the types of pathways eligible for the production of green hydrogen. Bidders must adhere to capacity limits and commit to maintaining consistent production levels over the initial three years. The RfS also outlines the locations where green hydrogen production facilities can be established, giving bidders flexibility in site selection. Successful projects under this scheme will receive direct incentives based on the quantity of green hydrogen produced annually for the first three years following commissioning. Bidders are required to submit an Earnest Money Deposit (EMD) and Performance Guarantees as part of the bidding process to ensure project commitment and performance. Overall, this initiative is a significant step towards boosting green hydrogen production in India, fostering technological growth, economic development, and supporting the broader objectives of the National Green Hydrogen Mission.
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