India awards tenders for 412,000 tons of green hydrogen production
India has taken a significant step toward green energy by awarding tenders for the establishment of 412,000 tons of green hydrogen manufacturing and 1.5 gigawatts (GW) of electrolyzer manufacturing capacity. This announcement was made by Bhupinder S Bhalla, Secretary of the Ministry of New & Renewable Energy (MNRE), at the World Hydrogen Summit 2024 in the Netherlands. He highlighted India's progress under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program and various pilot projects.
India's potential as a green hydrogen producer
Bhalla emphasized India's potential as a green hydrogen producer, attributing it to the country's access to some of the cheapest sources of renewable energy. He stated that India is leading efforts toward a more inclusive and environmentally-conscious energy landscape. In 2023, MNRE launched the National Green Hydrogen Mission, which includes the SIGHT program aimed at establishing an electrolyzer manufacturing base and green hydrogen production facilities.
Details of SIGHT program and financial incentives
The SIGHT program, a part of the National Green Hydrogen Mission, consists of two components. The first component involves an allocation of ₹4,440 crore for manufacturing electrolyzers from FY26 to FY30. The second component deals with an allocation of ₹13,050 crore for producing green hydrogen during the same period. The total financial incentive under SIGHT is ₹17,490 crore, aimed at enabling rapid scale-up, technology development, and cost reduction.
India's ambition to become a global green hydrogen hub
The ultimate goal of these initiatives is to position India as a global hub for the production, usage, and export of green hydrogen and its derivatives. The state-run Solar Energy Corporation of India (SECI) is responsible for implementing these programs. It is projected that India's green hydrogen production capacity will reach five million tons per annum, contributing to a reduction in dependence on imported fossil fuels.
Green hydrogen's impact on India's fossil fuel imports and emissions
The achievement of these mission targets could potentially reduce a cumulative ₹1 lakh crore worth of fossil fuel imports by 2030. Additionally, nearly 50 million tons per annum of CO2 emissions are expected to be averted through the production and use of the targeted quantum of green hydrogen. The government has specified standards for green hydrogen production, noting that it should be produced using renewable energy and non-biogenic carbon emissions should not exceed 2kg CO2 equivalent per kilogram of hydrogen.
