India's green hydrogen aid receives cautious response from investors

By Rajesh Kumar Singh

India’s first tranche of subsidies as part of a $2.4 billion green hydrogen plan attracted bidders including Sembcorp Industries, JSW Energy Ltd. and AM Green, while other major companies stayed away, according to people familiar with the development.
 

Acme Solar Holdings and Avaada Group also competed to help build a total capacity of 450,000 tons a year of the clean fuel, the people said, asking not to be named before an official announcement. State utility NTPC Ltd., and Adani Enterprises Ltd., which have green hydrogen plans of their own, didn’t take part in the auction. 

Organizer Solar Energy Corp. of India Ltd. extended the submission deadline by 10 days until Dec. 14, which could attract new bidders.

Spokespersons at Sembcorp, Acme, AM Green, Avaada, Adani and NTPC didn’t immediately respond to an emailed request for comment, neither did the renewable energy ministry. JSW Energy declined to comment.

India’s flagship plan aims to produce 5 million tons annually of green hydrogen, seen as key to decarbonize hard-to-abate industries such as oil refining, fertilizers, steel and shipping. As local companies still shy away from high upfront costs, India is now focusing on exports looking for deals with European and Southeast Asian economies, while doubling down on subsidies at home.

The fresh subsidies cover the first three years of output, offering up to 50 rupees ($0.6) a kilogram for the first year, 40 rupees in the second and 30 rupees a kilogram in the third year, according to bid documents.