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SECI Invites Bids to Set up 1.5 GW Electrolyzer Manufacturing Capacities Across India

Last Updated on 18th March 2024

The solar energy corporation has floated a tender to establish 1.5 GW of electrolyzer manufacturing capacities in India under strategic interventions for the Green Hydrogen Transition (SIGHT) program. The deadline for submitting bids is April 30, 2024, and bids will be opened by May 3.

 

SECI Invites Bids to Set up 1.5 GW Electrolyzer Manufacturing Capacities Across India

representative image

 

Key tender details 

In INR

In USD 

Non-refundable fee

25,000

301

Bid processing fee

1,500,000

18,094

Earnest Money Deposit

740,000

8,926

Performance Bank Guarantee

1,480,000

17,851

 

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The manufacturers that secure this tender will be eligible for quarterly incentives on sales of electrolyzers for five years from the date of commissioning. The total capacity is segmented into distinct buckets. Additionally, for the first bucket, any stack technology can be used,  while the other buckets use indigenous stack technology.

 

Segments

Capacity (MW)

Bucket 1

1100

Bucket 2A

300

Bucket 2B

100

 

Read: L&T Commissions its First Indigenously Manufactured Hydrogen Electrolyser at Hazira Green Hydrogen Plant

 

What is Stack Technology?

In electrolyzers, the stack is the heart of the operation. It's a multi-layered assembly that houses the key components responsible for splitting water molecules into hydrogen and oxygen through electrolysis. 

 

An electrolyzer stack consists of numerous interconnected electrolysis cells. These cells use electricity to drive the chemical reaction that separates water into its components.

 

What is SIGHT Program?

A significant initiative that the Indian government launched in 2022 is the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. It forms a crucial sub-component of the National Green Hydrogen Mission, aiming to propel India towards energy independence and a greener future.

 

With a total budgetary outlay of USD 2 billion (INR 17,490 crore), SIGHT offers financial incentives to stimulate two key areas:

 

Domestic Manufacturing of Electrolysers (Component I):  This component dedicates INR 4440 crore to incentivize the manufacturing of electrolyzers within India. Electrolysers are devices that use renewable electricity to split water molecules into hydrogen and oxygen. By promoting domestic production, SIGHT aims to reduce reliance on imports and establish a robust domestic supply chain for this critical technology.

 

Green Hydrogen Production (Component II):  A larger allocation of USD 1.5 billion (INR 13,050) crore targets green hydrogen production facilities. Green hydrogen is produced through electrolysis using renewable energy sources like solar or wind power. This clean-burning fuel offers a promising alternative to fossil fuels, particularly in sectors like transportation, refining, and steel production.

 

Learn more about the upcoming and ongoing green hydrogen projects under the SIGHT scheme.

 

Read: ACWA Power Partners with LONGi for Green Hydrogen Project in Uzbekistan

 

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