SECI Completes Rs 4440 Crore Electrolyser Manufacturing Initiative Under SIGHT Program: Advancing India's Green Hydrogen Goals

The Solar Energy Corporation of India (SECI) has successfully concluded the Rs 4440 crore Electrolyser Manufacturing Component of its Strategic Interventions for Green Hydrogen Transition (SIGHT) program. This marks a significant milestone in India's ambitious National Green Hydrogen Mission (NGHM), aimed at bolstering the nation's green hydrogen production capabilities and establishing India as a global leader in green hydrogen production, utilization, and export.

National Green Hydrogen Mission: Vision for 2030

Launched in January 2023, the National Green Hydrogen Mission seeks to position India as a global hub for green hydrogen. The mission targets the production of 5 million metric tonnes per annum (MMTPA) of green hydrogen and the addition of 125 gigawatts (GW) of renewable energy capacity by 2030. These targets are integral to reducing 50 MMTPA of greenhouse gas (GHG) emissions, thereby contributing significantly to global climate change mitigation efforts.

The SIGHT Program: Catalyzing Domestic Manufacturing and Production

Central to the NGHM is the SIGHT program, implemented by SECI to incentivize the domestic manufacturing of electrolysers and green hydrogen production. The program is divided into two main components:

For Component-I, SECI allocated Rs 4440 crore to stimulate the domestic production of electrolysers, which are crucial for green hydrogen production. SECI has issued two tenders under Component-I, with the auction for the second tender of 1500 MW scheduled for April 30, 2024, marking the conclusion of this component.

Enhancements in the Second Tender

The second tender incorporates several improvements based on industry feedback and insights gained from the initial tender issued in July 2023. Key enhancements include:

• Separate Bucket for Smaller Enterprises: Introduction of a separate bucket with lower net worth eligibility requirements to encourage participation from smaller manufacturing enterprises and startups.
• Stricter Performance Criteria and Penalties: Implementation of enhanced performance criteria and stricter penalties for non-compliance compared to the first tender.
• Revised Incentive Calculation Formula: Transition from local value addition (LVA) to domestic value addition (DVA) in the incentive calculation formula, offering higher incentives for manufacturers meeting their LVA targets.

Projected Impact and Future Goals

The combined annual sales under both tranches of the SIGHT Component-I program could reach up to 3 GW during the scheme's five-year period. This capacity is expected to result in an electrolyser installed capacity of 15 GW by 2030. Given a specific energy consumption of 50 kWh per kg of hydrogen, this 15 GW capacity can produce up to 2.62 MMTPA of green hydrogen, representing 52% of the national target of 5 MMTPA by 2030.

Following the conclusion of Component-I, SECI will shift its focus to green hydrogen production under Component-II. The collaborative efforts of SECI and the Ministry of New and Renewable Energy (MNRE) have established a solid foundation for developing a robust green hydrogen sector in India.

The successful conclusion of the Electrolyser Manufacturing Component under the SIGHT program is a landmark achievement in India's green hydrogen mission. It underscores the country's commitment to developing a sustainable and self-reliant green hydrogen economy. While substantial progress has been made, continued efforts and strategic interventions are crucial to fully achieving the ambitious targets set under the National Green Hydrogen Mission.

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