India's green hydrogen initiative garners interest, major players sit out initial subsidy auction

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India's green hydrogen initiative garners interest, major players sit out initial subsidy auction

India's green hydrogen initiative garners interest, major players sit out initial subsidy auction

Industry News
Dec 08,23

Initiative attracted interest from companies such as Sembcorp Industries, JSW Energy, and AM Green, while major players like Acme Solar Holdings, Avaada Group, NTPC, and Adani Enterprises opted out of the bidding process.

India's green hydrogen initiative garners interest, major players sit out initial subsidy auction

India's initial round of subsidies for its $2.4 billion green hydrogen initiative attracted interest from companies such as Sembcorp Industries, JSW Energy, and AM Green, while major players like Acme Solar Holdings, Avaada Group, NTPC Ltd, and Adani Enterprises Ltd opted out of the bidding process, as per sources familiar with the matter.

Unofficial reports suggest that Acme Solar Holdings and Avaada Group were contenders in the auction aimed at constructing a total capacity of 450,000 tons per year of green hydrogen. However, NTPC Ltd and Adani Enterprises Ltd, despite having their own green hydrogen plans, chose not to participate.

The Solar Energy Corp of India Ltd, the organising body, decided to extend the submission deadline by 10 days until December 14, possibly in a bid to attract additional participants.

There has been no immediate response from spokespersons at Sembcorp, Acme, AM Green, Avaada, Adani, and NTPC to requests for comments. The Ministry of Renewable Energy also did not provide an immediate response. JSW Energy declined to offer any comments.

India's ambitious plan aims to generate 5 million tons of green hydrogen annually, crucial for decarbonising challenging industries like oil refining, fertilisers, steel, and shipping. Facing reluctance from local companies due to high initial costs, India is shifting its focus to exports, seeking agreements with European and Southeast Asian economies, while simultaneously intensifying domestic subsidy efforts.

The newly announced subsidies span the first three years of production, offering incentives of up to 50 rupees ($0.6) per kilogram in the first year, 40 rupees in the second year, and 30 rupees per kilogram in the third year, according to the bid documents.

Source: Business Standard