India’s government has published the list of bidders into its first auctions for green hydrogen and electrolyser subsidies — both of which are oversubscribed.

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The green hydrogen auction is capped at 450,000 tonnes a year of production capacity, but has seen bids for a total of 553,730 tonnes a year.

These H2 subsidies will only last for three years, capped at 50 rupees per kilogram ($0.60/kg) from the first year of production, 40 rupees the second, and 30 rupees in the third.

Industrial conglomerate Reliance — led by billionaire Mukesh Ambani — pure-play green hydrogen and ammonia developer ACME, and Mumbai-based Avaada have all submitted bids for the maximum per applicant in the two auctions, ie, 90,000 tonnes of annual H2 production and 300MW of electrolyser manufacturing capacity.

A total of 13 companies submitted bids for the first technology-neutral “bucket” of the green hydrogen auction, capped at 410,000 tonnes a year.

However, for the second pot of funding, which offered support for up to 40,000 tonnes a year of biomass-based production pathways, only one company — state-owned Bharat Petroleum — has offered a bid, for a paltry 2,000 tonnes a year.

This lack of bidders for subsidies covering biomass-derived hydrogen could be due to uncertainty around whether this route will meet the national standard for green hydrogen, given the current definition only appears to count Scope 1 emissions — potentially penalising biomass-based H2 compared to electrolysis if lifecycle emissions abatement is not counted.

Additionally, biomass-based hydrogen is not counted as renewable H2 under the definition published by the EU, which could limit exports of the molecule or its derivatives to this market.

As this bucket is undersubscribed, the unawarded capacity will roll over to the other bidders.

Green hydrogen auction bidders

Bidding company

Bucket-1 Production Capacity (tonnes per year)

Bucket-2 Production Capacity (tonnes per year)

ACME Cleantech Solutions

90,000

-

Torrent Power

18,000

-

UPL

10,100

-

GH4INDIA

10,000

-

Aneeka Universal

2,000

-

Sembcorp Green Hydrogen India

36,000

-

Greenko ZeroC

90,000

-

CESC Projects

10,500

-

JSW Neo Energy

10,000

-

Welspun New Energy

20,000

-

Avaada GreenH2

90,000

-

Reliance Green Hydrogen and Green Chemicals

90,000

-

HHP Two

75,130

-

Bharat Petroleum

-

2,000

Total

551,730

2,000

Source: Solar Energy Corporation of India (SECI)

Meanwhile, the electrolyser tender is set to support 1,500MW of annual manufacturing capacity and has received 21 bids for more than double this capacity at 3,428.5MW.

This auction is potentially more lucrative for companies, offering support over five years, starting at a maximum of 4,440 rupees per kilowatt of capacity sold and progressively lowering to 1,480 rupees.

The second bucket for the electrolyser auction, which ringfences subsidies for 300MW of Indian-developed technologies, is also far more competitive than the alternate pot of funding in the green hydrogen tender, with bids submitted for 486.5MW in total. This includes conglomerate Adani seeking to corner the full 300MW cap.

However, all bidders for electrolyser manufacturing subsidies have to ensure that 50% of their annual sales supported by subsidies will go towards domestic installations.

The companies are also expected to include a measure of “local value addition” to keep the supply chain based in India. This is expressed as a percentage of the difference between sale value of the electrolyser and value of imports, in order to ensure a minimum percentage of the sales value of an electrolyser is from locally sourced materials.

Electrolyser manufacturing auction bidders

Bidding company

Bucket-1 Manufacturing Capacity (MW)

Bucket-2 Manufacturing Capacity (MW)

Hild Electric

100

-

Ohmium Operations

137

-

John Cockerill Greenko Hydrogen Solutions

300

-

Waaree Energies

300

-

Jindal India

300

-

Adani New Industries

300

300

L&T Electrolysers

300

-

Avaada Electrolyser

300

-

Green H2 Network India

100

-

Reliance Electrolyser Manufacturing

300

-

Advait Infratech

100

-

ACME Cleantech Solutions

100

-

Oriana Power

100

-

Matrix Gas and Renewables

105

-

HHP Seven

100

-

HomiHydrogen

-

101.5

Bharat Heavy Electricals

-

10

Newtrace

-

6

C. Doctor & Company

-

10

Pratishna Engineers

-

19

LiveHy Energy

-

40

Total

2,942

486.5

Source: Solar Energy Corporation of India (SECI)