Green Hydrogen Tender

A green hydrogen tender is a government competitive procurement under India's National Green Hydrogen Mission (NGHM) through which SECI, NTPC, Indian Oil, and other PSUs select developers to produce green hydrogen using renewable electricity, with the government providing incentives (INR/kg) or off-take assurance to make projects commercially viable.

What is a Green Hydrogen Tender?

Green hydrogen is produced by electrolyser-based electrolysis of water using renewable electricity, zero-carbon process creating hydrogen that can decarbonise steel, fertiliser, refinery, and shipping sectors. India's NGHM targets 5 million metric tonnes (MMT) per year of green hydrogen production by 2030, requiring massive procurement.

Types of green hydrogen tenders issued by the government:

• Incentive-based production tenders: SECI/MNRE issues tenders selecting developers who will produce green hydrogen in exchange for production incentives (Rs/kg of H2) under the SIGHT (Strategic Interventions for Green Hydrogen Transition) programme
• Electrolyser manufacturing tenders: Government selects domestic electrolyser manufacturers for incentives under PLI-type schemes to build Indian manufacturing capacity
• PSU off-take tenders: Refineries (IOCL, BPCL, HPCL) and fertiliser PSUs issue tenders for green hydrogen supply to replace grey hydrogen in their operations
• Port bunkering tenders: Green ammonia supply for shipping at major ports (JNPA, VOPT)

SECI manages SIGHT programme tenders for green hydrogen and green ammonia production on its e-procurement portal. Incentives are in Rs per kg of green hydrogen/ammonia produced for a five-year period.

Technology requirements: Electrolyser types (PEM, Alkaline, AEM), minimum efficiency standards, certification to international standards (ISO 22734 for electrolysers), and renewable power sourcing verification.

Why Green Hydrogen Tenders matter for Indian government suppliers

India's Rs 19,744 crore NGHM allocation creates a new procurement frontier. While green hydrogen is new, it creates procurement opportunities for electrolyser manufacturers and importers, renewable energy developers integrating with hydrogen plants, EPC contractors for hydrogen facilities, and technology firms for hydrogen storage and safety management.

Example

SECI issues a SIGHT incentive tender for 4.5 lakh MTPA of green hydrogen, split into 15 bundles of 30,000 MTPA each. Developers bid the minimum incentive (Rs/kg) at which they will produce green hydrogen using dedicated renewable power. The lowest-incentive bidders for each bundle win 20-year incentive contracts. Each developer then secures renewable power (solar/wind), procures electrolysers, and builds a green hydrogen plant.

Frequently Asked Questions

What is the difference between green, blue, and grey hydrogen?

Grey hydrogen is produced from natural gas using steam methane reforming (SMR), carbon-intensive. Blue hydrogen is grey hydrogen with carbon capture and storage (CCS). Green hydrogen is produced from renewable electricity through electrolysis, zero-carbon. Government tenders under NGHM specifically target green hydrogen production.

Who can bid for SECI green hydrogen production tenders?

Developers with renewable energy project experience, sufficient financial capacity (net worth per MW of capacity), and technical capacity to develop large integrated renewable+hydrogen projects. Electrolyser procurement, renewable power development, and hydrogen storage are all complex; most bidders are large energy companies or consortia.

Are there green hydrogen export tenders?

Yes. India aims to export green ammonia (green hydrogen carrier) to Japan, South Korea, and Europe. Port authorities and shipping ministries have issued tenders for green ammonia bunkering facilities. Export-oriented green hydrogen tenders often have additional international off-take agreement requirements.

What environmental clearances are required for green hydrogen plants?

Green hydrogen plants require Environment Clearance (EC) from MoEF for facilities above specified size thresholds, Explosive License from PESO (Petroleum and Explosives Safety Organisation) for hydrogen storage, and safety assessments per OISD (Oil Industry Safety Directorate) guidelines for hydrogen handling.