India would provide incentives for a declared annual production capacity of 450 000 tonnes of green hydrogen in the first round of bidding. Under the National Green Hydrogen Mission, the Ministry of New and Renewable Energy released guidelines that specify the capacity available and set a cap on the incentives that can be granted for the manufacture of electrolysers and green hydrogen, respectively.
The highest limitations outlined in the draught guidelines, incentives will be set at Rs 50/kg in the first year, Rs 40/kg in the second, and Rs 30/kg in the final year. The first method for the government's green hydrogen production incentive entails bidding on the least incentive desired over a three-year period.
The annual production capacity objective that the bidders must meet in order to qualify for the green hydrogen incentive must also be stated. The plan, which was unveiled in January, will spend a total of Rs 13,050 crore on producing green hydrogen. According to a notification from the government, the bidder who offered the lowest average incentive would receive the first allocation of its permissible capacity.
The maximum capacity granted to a single bidder in hydrogen production capacity to be put up by "technology agnostic" methods would be 90,000 tonnes per year, but not less than 10,000 tonnes per year. The highest allocation for a single bidder for capacity that will be based on biomass would be 4,000 tonnes per year, while the lowest that can be bid for is 500 tonnes.
Support will be given per kW in accordance with the manufacturing capacity for the manufacture of electrolysers. The base incentive will begin at Rs 4,440/kW and taper down annually, as specified in the drafted guidelines. As indicated before in the mission, there is a total incentive of Rs 4,440 crore for the manufacture of electrolysers.
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