​1.5 Gw electrolyser projects: Centre fleshes out details of 1st H2 mission

The first phase of the National Hydrogen Mission will see the setting up of 1.5 gigawatt (Gw) of electrolyser manufacturing, with 0.3 Gw of indigenous capacity, the government announced on Wednesday. 

The Union Ministry of New & Renewable Energy on Wednesday published the contours of the Strategic Interventions for Green Hydrogen Transition (SIGHT).

SIGHT is one of the four components of the Green Hydrogen Mission. 

The bids in the first tranche will be called for 1.5 Gw of electrolyser manufacturing and will follow the ‘bucket-fill’ method. Of this, 1.2 Gw can employ any global technology; the balance indigenous.  

The base incentive will start from Rs. 4,440 per kilowatt and gradually decrease every year. The incentive period will be five years. 

The Union Cabinet earlier this year had approved an initial outlay of Rs. 19,500 crore for the National Green Hydrogen Mission, which was launched by Prime Minister Narendra Modi in his speech on the 75th Independence Day in 2021.

The mission will have four components which will aim at enhancing the domestic production of green hydrogen and promote the manufacturing of electrolysers — a key component for making green hydrogen.

The initial outlay for the mission will include Rs. 17,490 crore for SIGHT; Rs. 1,466 crore for pilot projects; Rs. 400 crore for research and development; and Rs. 388 crore towards other mission components, the Centre said in a statement. The initial target is to produce 5 million tonnes of green hydrogen annually.

SIGHT will include two financial incentive mechanisms for the domestic manufacturing of electrolysers and the production of green hydrogen.