The Solar Energy Corporation of India Limited (SECI), under the Ministry of New and Renewable Energy (MNRE), has issued an Expression of Interest (EOI) to identify and map carbon dioxide (CO₂) sources across India. Released on August 3, 2026, the initiative is aimed at supporting the future production of Green Urea and green methanol that comply with Renewable Fuels of Non-Biological Origin (RFNBO) standards.
The exercise is part of the National Green Hydrogen Mission, approved in January 2023, which seeks to establish India as a leading global hub for the production, use, and export of green hydrogen and its derivatives. Through this consultation, SECI intends to understand the availability, quality, and geographical distribution of carbon dioxide sources before introducing future incentive schemes or carbon capture policies.
According to SECI, carbon dioxide generated across different industries varies in purity, volume, and consistency. The collected information will help assess the country’s readiness to support large-scale production of green fuels and chemicals while identifying infrastructure and policy requirements.
The consultation has been divided into two sections based on end-use applications. The first section focuses on carbon dioxide sources required for producing RFNBO-compliant green methanol, mainly for export and international shipping. Green methanol exported to European markets must meet strict sustainability requirements under the European Union’s Renewable Energy Directive (RED III) and FuelEU Maritime regulations.
Under these regulations, carbon dioxide captured from biogenic sources, including distilleries, biogas upgrading plants, and biomass processing facilities, as well as Direct Air Capture (DAC) technologies, qualifies as fully compliant without any future restrictions. While certain fossil-based industrial carbon dioxide sources remain temporarily eligible in some European carbon-pricing systems until 2036 or 2041, most Indian industrial facilities currently do not fall under those frameworks. As a result, biogenic carbon dioxide is considered the most suitable option for export-oriented green methanol production.
To support efficient logistics, SECI is giving priority to carbon dioxide sources located near Deendayal Port Authority in Kandla, Gujarat, and V.O. Chidambaranar Port Authority in Tuticorin, Tamil Nadu. Facilities situated within 50 kilometres of these ports are considered highly suitable because they can reduce transportation costs and enable easier pipeline connectivity.
The second section of the consultation focuses on carbon dioxide sourcing for Green Urea, which is intended mainly for domestic agricultural use. By combining green ammonia with captured carbon dioxide, India can manufacture green urea while reducing dependence on imported ammonia and conventional natural gas-based production. Since green urea for domestic consumption is not subject to European export regulations, SECI is inviting participation from a wide range of industries, including fertilizer plants, refineries, cement factories, steel plants, distilleries, paper mills, and waste-to-energy facilities.
For green urea projects, preference will be given to carbon dioxide sources located within 50 kilometres of existing or upcoming urea manufacturing plants to reduce logistics costs. SECI has clarified that the EOI is only an information-gathering exercise and does not involve financial commitments, contract awards, or competitive evaluation. Interested stakeholders are invited to submit details on carbon dioxide quality, daily supply, availability, transportation arrangements, and policy support requirements, including viability gap funding, capital subsidies, and transport infrastructure. A pre-response meeting with stakeholders has been scheduled for August 18, 2026, to address industry queries and provide further clarification.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
