Reliance, L&T, Waaree, and six others receive Letter of Award to set up green hydrogen production facilities

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Solar Energy Corporation of India (SECI), an implementing agency of the National Green Hydrogen Mission, has issued letters of award (LoA) for setting up green hydrogen production facilities and availing the incentives offered under the programme, according to an order issued by the Central public sector undertaking (CPSU).

While 14 companies had bid for the incentives, nine companies were selected as they emerged as the lowest bidders under Tranche II of Mode I. The companies which received the LoA include Reliance Green Hydrogen and Green Chemicals Ltd, L&T Energy Green Tech Ltd, Waaree Clean Energy Solutions Private Ltd, Oriana Power Ltd, Green Infra Renewable Energy Farms Private Ltd (Sembcorp), Suryadeep KA1 Project Private Ltd (Insolare), GH2 Solar Private Ltd, AM Green Ammonia (India) Private Ltd and Matrix Gas and Renewables Ltd.

The green hydrogen production facilities will have 36 months from the date of issuance of the letter of award (February 28 and March 17, 2025) to commission the full production capacity, according to the government's conditions.

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This list is for the second round of incentives offered by the Union government for setting up green hydrogen production units in India. In January, 2024, SECI released the first list of winners under Tranche I of Mode 1. The winners in the first tranche were Reliance Green Hydrogen and Green Chemicals Ltd, ACME Cleantech Solutions Private Ltd, Greenko ZeroC Private Ltd, Torrent Power, HHP Two Private Ltd, Welspun New Energy, CESC Projects Ltd, UPL Ltd and JSW Neo Energy Ltd.

Reliance Group is the only company which has won incentives under the National Green Hydrogen Mission in both the tranches for green hydrogen production. The Group is constructing the a giga factory in Jamnagar, Gujarat for green hydrogen. As per the government's guidelines, companies can bid twice for green hydrogen production in one mode, but the same cannot be applied in two different modes.

The Ministry of New and Renewable Energy had invited bids to establish 450,000 tonnes per year green hydrogen manufacturing capacities under the second tranche with a total allocated incentive of Rs 5,400 crore. For this tranche (Mode 1), the government has capped incentives at Rs 50 per kg in the first year of production, Rs 40 per kg in the second year and Rs 30 per kg in the third year of production.

The NGHM has a total initial outlay of Rs 19,744 crore, of which Rs 17,490 crore has been kept for the production-linked incentives (PLIs) for producing green hydrogen and manufacturing electrolysers. Of the Rs 17,490 crore incentive outlay, Rs 13,050 crore is for the production of green hydrogen and its derivatives, while Rs 4,440 crore has been allotted for incentives for electrolyser manufacturing.

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