The government unveiled guidelines for the second phase of its clean hydrogen production funding initiative, offering subsidies for up to 4,50,000 tons of hydrogen annually. The second tranche of the incentive scheme for green hydrogen production will provide producers with a three-year incentive structure. The incentive rates are set at $0.61/kg for the first year, $0.49/kg for the second year, and $0.37/kg for the third year.
The scheme’s auction will be divided into two categories: technology-agnostic pathways for 4,10,000 tons per year and biomass-based pathways for 40,000 tons per year. Applicants in bucket I must propose projects with production capacities between 10,000 tons and 90,000 tons per year, while bucket II applicants need to have production capacities between 500 and 4,000 tons per year.
The Solar Energy Corporation of India (SECI) will manage the bidding process. Bidders will be ranked based on their average incentive cost over the three years, with allocation going from the lowest to the highest average incentive.
This round of funding follows an oversubscription of approximately 100,000 tons per year in tranche I. Projects selected in the first round, which had a total capacity of 4,50,000 tons per year, received average incentives of $0.48/kg.
As reported by h2-view.com, as part of the government’s $2.1 billion Strategic Initiative for Green Hydrogen Technologies (SIGHT) under the broader green hydrogen mission, the funding aims to support the country’s target of producing five million tons of hydrogen annually by 2030.
