SECI Launches Major RFS To Boost Green Hydrogen Production In India Under SIGHT Scheme

The Solar Energy Corporation of India (SECI) has issued a Request for Selection (RfS) for green hydrogen producers to set up production facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-II). The Union Cabinet has approved the National Green Hydrogen Mission with a budget of ₹19,744 crore until 2029-30. A significant portion of this budget, ₹17,490 crore, is allocated to the SIGHT Programme to incentivize domestic manufacturing of electrolyzers and the production of green hydrogen. These incentives aim to enable rapid scale-up, technology development, and cost reduction.

The sale of documents will conclude on August 21, 2024, with the deadline for bid submissions being August 23, 2024. The bids will be opened on August 27, 2024.

Following the conclusion of Mode-1 Tranche-I bidding, the Ministry of New and Renewable Energy (MNRE) issued guidelines for implementing Component II of the SIGHT Programme. SECI has been designated as the implementing agency for this scheme, and the RfS document aligns with these guidelines and any subsequent amendments.

The primary objective of this RfS is to encourage the establishment of green hydrogen production facilities in India. The total capacity available for bidding includes 4,10,000 metric tonnes per annum (MT/annum) for technology-agnostic pathways and 40,000 MT/annum for biomass-based pathways, totaling 4,50,000 MT/annum. Bidders must submit a single bid for setting up these facilities, with projects quoted in multiples of 500 MT/annum. The capacities must remain constant over the first three years of commercial production.

The minimum and maximum bid capacities for technology-agnostic pathways are 10,000 MT/annum and 90,000 MT/annum, respectively. For biomass-based pathways, the minimum bid capacity is 500 MT/annum, and the maximum is 4,000 MT/annum. A bidder, including any parent or affiliate companies, is limited to a maximum of 90,000 MT/annum under this tender and a cumulative maximum of 2,25,000 MT/annum across all modes and tranches of the SIGHT Programme.

The green hydrogen production facilities can be set up anywhere in India, with bidders responsible for choosing locations. These facilities must be commissioned within 36 months from the issuance of the Letter of Award (LoA). In case of delays, penalties will be imposed based on the proportionate balance capacity not commissioned. Successful projects will receive direct incentives in ₹/kg of green hydrogen produced annually for three years from the scheduled commissioning date or the full project capacity commissioning date, whichever is earlier.

Bidders must submit an Earnest Money Deposit (EMD) of ₹2,500 per MT/annum of quoted production capacity. For those bidding in multiple buckets, the EMD should correspond to the cumulative capacity. Performance Guarantees, equivalent to ₹5,000 per MT/annum of allocated production capacity, must be submitted within 15 days of the issuance of the Notification of Award by SECI. This RfS is a critical step towards scaling up green hydrogen production in India, aligning with the broader goals of the National Green Hydrogen Mission.