India’s Ministry of New and Renewable Energy (MNRE) has released the guidelines for its incentive schemes for green hydrogen and electrolyzer production. The MNRE has appointed Solar Energy Corp. of India Ltd (SECI) as the implementing agency for the schemes.

The ministry said that the incentives for green hydrogen production may be offered through several models, including competitive bidding based on incentives demanded. Under incentive-based bidding, the bidders will be required to quote the annual production capacity of green hydrogen and/or its derivatives for which the incentive is sought and the incentive demanded for each of the first three years of production.

Incentives will be provided for five years from the commencement of electrolyzer manufacturing. The selection of beneficiaries will be based on the domestic value addition and performance quotient (specific energy consumption of the electrolyzer produced).

In the first round, bids will be launched for 1.5 GW of electrolyzer capacity. The minimum bid capacity is 100 MW and the maximum is 300 MW.

Sandeep Agarwal, founder and managing director at Greenzo, said the MNRE’s initiative will encourage many more investments in the production of electrolyzers in the Indian market. Agarwal said Greenzo Energy is setting up an alkaline electrolyzer manufacturing factory with an annual capacity of 250 MW in Sanand, Gujarat, and will benefit from the incentive scheme.

“As an MSME we appreciate this initiative, which will not only support the growth of the green hydrogen industry but also encourage the production of electrolyzers within the country,” he added. “This step aligns with the larger goal of achieving net zero emissions by 2070.”