Central Government announces new guidelines for Green Hydrogen production

The Ministry of New and Renewable Energy (MNRE) has released new guidelines for the next phase of the “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (Mode 1) – Tranche-II”.

In this phase, the target is to produce 450,000 tons of Green Hydrogen per year. Out of this, 40,000 tons will come from biomass-based methods (Bucket-II), while the rest will use various technologies (Bucket-I). The Solar Energy Corporation of India (SECI) will manage this phase, with a call for bids to be issued soon.

The bidding process will be based on the lowest average incentive offered by bidders. For Bucket-I, bids can be between 10,000 and 90,000 tons per year. For Bucket-II, bids can be between 500 and 4,000 tons per year. Bidders can take part in one or both categories, with a maximum limit of 90,000 tons per year per bidder.

The National Green Hydrogen Mission, launched on 4th January 2023, has a budget of Rs. 19,744 crores up to FY 2029-30. This mission aims to make India self-reliant in clean energy, reduce dependence on fossil fuels, and establish India as a global leader in Green Hydrogen technology and markets.