India is making significant strides in the green hydrogen sector, with several major companies awarded tenders to establish production facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme. The Solar Energy Corporation of India (SECI) announced that Reliance Green Hydrogen, L&T Energy, AM Green Ammonia, and Waaree Clean Energy Solutions are among the nine successful bidders. This move is part of a broader initiative to enhance renewable energy output in the country.
Winners of the Green Hydrogen Tender
In total, 14 companies submitted bids for this tender, but only nine were selected. Additional winners include:
- Oriana Power Ltd
- Matrix Gas and Renewables Ltd
- GH2 Solar Private Ltd
- Green Infra Renewable Energy Farms Private Ltd
- Suryadeep KA1 Project Private Ltd
Among these, L&T Energy, Green Infra Renewable Energy Farms, and AM Green Ammonia will produce the highest capacity of 90,000 metric tonnes of green hydrogen each year. Reliance Green Hydrogen, on the other hand, will contribute 49,000 metric tonnes annually.
Financial Incentives and Government Support
SECI has allocated substantial financial incentives to support these initiatives:
- AM Green Ammonia: ₹513 crore
- Waaree Clean Energy Solutions: ₹510.3 crore
- Green Infra Renewable Energy Farms: ₹437.4 crore
The Indian government is committed to enhancing green hydrogen capabilities, having invited bids for a total capacity of 450,000 tonnes per annum in this second tranche.
Investment Potential and Future Plans
Experts estimate that establishing a green hydrogen facility with a capacity of 100,000 tonnes typically requires an investment of ₹18,000 to ₹20,000 crore. As a result, the companies awarded contracts are projected to invest approximately ₹80,000 crore in developing the designated green hydrogen capacity.
The total financial incentives allocated by the government under this second tranche of the SIGHT scheme amount to ₹2,238.59 crore. Other companies that participated in this bidding round include:
- ReNew E-Fuels Private Limited
- Ocior Energy India Private Limited
- Nishal Enterprises Private Limited
- ChemSepT Engineering Private Limited
- Avaada GreenH2 Private Limited
Expanding the Renewable Energy Sector
The Indian private sector is increasingly investing in renewable energy, particularly in green hydrogen production. The SIGHT scheme has set specific bidding guidelines, allowing for minimum bids of 10,000 tonnes per year in technology-agnostic pathways and 500 tonnes per year in biomass-based pathways, with a maximum bid capacity of 90,000 tonnes.
Following the issuance of the Letter of Award (LoA), companies can initiate multiple projects to implement their allocated capacities.
Government Initiatives and Future Goals
The government’s commitment to the green hydrogen sector is further evidenced by the National Green Hydrogen Mission, launched in 2023 with a budget of ₹19,744 crores allocated until 2029-30. This mission aims for India to achieve a green hydrogen production capacity of at least 5 million tonnes per annum and an additional 125 GW of renewable energy capacity by FY30.
With these ambitious plans and substantial government backing, India’s green hydrogen sector is poised for significant growth, promising not just environmental benefits but also economic opportunities for the nation.
