21 firm bid for SECI’s green hydrogen, electrolyzer incentives

Reliance Electrolyser Manufacturing, Adani New Industries, L&T Electrolysers, and Bharat Heavy Electricals are among 21 companies vying for government incentives to establish an annual manufacturing capacity of 3.4 GW for electrolyzers—an essential component in hydrogen production.

These bids were submitted in response to a tender issued by the Solar Energy Corporation of India (SECI), which invited players on July 7 to set up 1.5 GW capacity for electrolyzer manufacturing.

In a parallel development on July 10, SECI also sought bids for the selection of green hydrogen producers to establish production facilities producing 450,000 tonnes of green hydrogen under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme (Mode-1-Tranche-I).

Simultaneously, 14 companies have expressed interest in incentives for developing production facilities producing 553,730 tonnes of green hydrogen, exceeding the offered capacity of 450,000 tonnes.

In January 2023, the Union Cabinet sanctioned the National Green Hydrogen Mission (NGHM) with an allocation of Rs 19,744 crore, aiming to position India as a global hub for manufacturing this environmentally friendly energy source.

The mission anticipates the creation of 5 million tonnes per annum of green hydrogen production capacity by 2030, necessitating 60-100 GW of electrolyzer capacity and 125 GW of renewable energy capacity. Presently, approximately 30 percent, or around 130 GW, of India’s installed capacity is renewable energy (excluding large hydro and nuclear). Achieving this target alone would require utilizing 125 GW of this existing 130 GW installed capacity.

The NGHM envisions India as a global hub for the production, utilization, and export of green hydrogen and its derivatives. The mission is anticipated to foster international collaboration and engagement in hydrogen and fuel cells.

As part of the initial phase, the mission includes the establishment of two green hydrogen hubs. The Ministry of Ports, Shipping, and Waterways has identified three major ports—Deendayal, Paradip, and V O Chidambaranar (Tuticorin) Ports—to be developed as hydrogen hubs.

In contrast to conventional hydrogen production methods using fossil fuels, both processes—traditional and green hydrogen—employ an electrolyzer for the splitting process.

Currently, India consumes approximately 5 million tonnes of hydrogen for various industrial purposes, primarily in petroleum refining, ammonia manufacturing for fertilizers, methanol production, and the treatment and production of metals. However, 99 percent of its usage is concentrated in the fertilizer and petroleum industries.