First tranche of Green H2 bidding to offer incentives for 450,000 tonnes/year capacity

India will offer incentives for a stated capacity of 450,000 tonnes per year in the first tranche of bidding for green hydrogen production.

The Ministry of New and Renewable Energy Wednesday announced guidelines for green hydrogen production and electrolyser manufacturing incentive schemes, under the National Green Hydrogen Mission, that lay down the capacity available and provide for capping incentives being offered.

Incentives would be capped at Rs 50/kg in the first year, Rs 40/kg in the second and Rs 30/kg in the last, in line with the upper limits proposed in the draft guidelines.


The first mode for green hydrogen production incentive by the government comprises bidding on the least incentive sought over three years.

The bidders will also have to state their annual production capacity target for availing the green hydrogen incentive.

The total outlay for the scheme, announced in January, for green hydrogen production is Rs 13,050 crore.

The bidder quoting the least average incentive will be first allocated its admissible capacity, a notification from the ministry said.

In hydrogen production capacity to be set up through "technology agnostic" ways the maximum capacity allotted to a single bidder would be 90,000 tonnes a year but not less than 10,000 tonnes a year.

For capacities that will be biomass based, the maximum allotment for a single bidder would be 4,000 tonnes a year and the minimum that can be bid for is 500 tonnes.

For electrolyser manufacturing, support will be provided per kW corresponding to the manufacturing capacity. As stated in the draft guidelines, the base incentive will start at Rs 4,440/kW and taper down annually.

The total incentive for electrolyser manufacturing stated earlier in the mission is Rs 4,440 crore.