Seci invites bids for 500k tonne green methanol supply under SIGHT scheme

Seci has floated a tender for supply of 5 lakh tonne per annum green methanol under the SIGHT programme of the National Green Hydrogen Mission

The Solar Energy Corporation of India (Seci) on Wednesday launched the much-awaited tender for supply of 5 lakh tonne per annum green methanol under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme of the National Green Hydrogen Mission (NGHM).

 

Seci, under the aegis of the Ministry of New and Renewable Energy (MNRE), is the nodal agency for the mission with a mandate to promote the market for green hydrogen and its derivatives such as green methanol as part of a larger plan to decarbonise the shipping and industrial sectors.

 

The company floated the tender for production and supply of green methanol through cost-based competitive bidding under the first tranche of the SIGHT scheme on Wednesday. It will remain open till June 8, when the bids will be opened. Seci has called for a pre-bid meeting on the tender next week.

   

The Union Cabinet has approved the green hydrogen mission with an outlay of Rs 19,744 crore up to 2029-30. The SIGHT programme is a major financial measure under the mission, with an outlay of Rs 17,490 crore. It proposes two financial incentive mechanisms to support domestic manufacturing of electrolysers and production of green hydrogen.

 

The tender has been prepared in line with the guidelines issued by MNRE for implementation of the SIGHT programme, which state that Seci will act as the intermediary procurer for procurement of green methanol supplied by companies and also its sale to the procurer entirely on a back-to-back basis.

 

As the tender bars contract production and supply of green methanol, only companies setting up production facilities will be eligible to apply for incentives under the scheme.

 

“Green Methanol Producer (GMP) shall be required to set up Green Methanol Production Facilities for production and supply of Green Methanol to SECI, including storage and transportation up to the Delivery Point, with the primary objective of maximizing production of Green Methanol in India,” the tender document stated.

 

Under the tender, the Green Methanol Purchase Agreement (GMPA) will remain in force for 10 years. However, disbursement of incentives for the allocated capacity will be for a period of three years from the start of green methanol production and supply to Seci or the procurer, as per the Letter of Award (LoA).

 

The green methanol to be produced and supplied under the tender can be produced by companies using renewable energy from a co-located or remotely located renewable energy plant. Renewable energy can also be procured by companies from power exchanges for production of green methanol.

 

Methanol typically replaces petrol and diesel in the transport, energy and retail cooking sectors. In shipping, methanol is used as a fuel, often replacing bunker oil. Conventional methanol is produced from fossil fuels such as gas or coal gasification, while green methanol uses biomass from agricultural residue.