Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme
Kartavya Desk Staff
- •Source: ET*
Context: India has achieved a record-low price of ₹55.75/kg for Green Ammonia in the first SECI auction under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, marking a major step in the National Green Hydrogen Mission.
About Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme:
• What it is? A flagship financial component under the National Green Hydrogen Mission, aimed at catalyzing India’s transition to green hydrogen.
• A flagship financial component under the National Green Hydrogen Mission, aimed at catalyzing India’s transition to green hydrogen.
• Ministry: Implemented by Ministry of New and Renewable Energy (MNRE) along with Ministry of Petroleum and Natural Gas (MoPNG).
• Objectives:
• Scale up Green Hydrogen production and use in India. Make green hydrogen cost-competitive with fossil alternatives. Create domestic demand across key sectors.
• Scale up Green Hydrogen production and use in India.
• Make green hydrogen cost-competitive with fossil alternatives.
• Create domestic demand across key sectors.
• Modes of Implementation:
• Mode 1: Incentives awarded to lowest incentive seeker. Mode 2A: Aggregated demand for Green Ammonia (fixed incentive). Mode 2B: Aggregated demand for Green Hydrogen (fixed incentive)
• Mode 1: Incentives awarded to lowest incentive seeker.
• Mode 2A: Aggregated demand for Green Ammonia (fixed incentive).
• Mode 2B: Aggregated demand for Green Hydrogen (fixed incentive)
• Key Features of SIGHT Scheme: Outlay: ₹17,490 crore allocated under SIGHT out of ₹19,744 crore total mission budget, focused on incentives and infrastructure support. Incentive Rates (Mode 2B): ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3) to promote early adoption and gradual market shift. Bidding Process: SECI and Oil PSUs conduct competitive reverse auctions to select lowest bidders and aggregate demand. Standard Compliance: Only hydrogen meeting notified “Green Hydrogen” standards is eligible for incentives. Monitoring: A joint MNRE–MoPNG committee oversees implementation, ensures compliance, and resolves issues.
• Outlay: ₹17,490 crore allocated under SIGHT out of ₹19,744 crore total mission budget, focused on incentives and infrastructure support.
• Incentive Rates (Mode 2B): ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3) to promote early adoption and gradual market shift.
• Bidding Process: SECI and Oil PSUs conduct competitive reverse auctions to select lowest bidders and aggregate demand.
• Standard Compliance: Only hydrogen meeting notified “Green Hydrogen” standards is eligible for incentives.
• Monitoring: A joint MNRE–MoPNG committee oversees implementation, ensures compliance, and resolves issues.
About Green Ammonia in First SECI Auction (Mode-2A):
• What is Green Ammonia? Green Ammonia is ammonia (NH₃) produced from green hydrogen (via electrolysis using renewable power), a key derivative used in fertilisers, shipping fuel, and chemical manufacturing.
• Green Ammonia is ammonia (NH₃) produced from green hydrogen (via electrolysis using renewable power), a key derivative used in fertilisers, shipping fuel, and chemical manufacturing.
• Auction Highlights:
• Winning price: ₹55.75/kg (USD 641/MT). Offtaker: Paradeep Phosphates Ltd., Odisha. Quantity: 75,000 MTPA out of 7.24 lakh MTPA total tender. Term: Fixed 10-year supply, improving affordability and supply chain reliability.
• Winning price: ₹55.75/kg (USD 641/MT).
• Offtaker: Paradeep Phosphates Ltd., Odisha.
• Quantity: 75,000 MTPA out of 7.24 lakh MTPA total tender.
• Term: Fixed 10-year supply, improving affordability and supply chain reliability.
• Significance:
• Boosts India’s clean fertiliser transition and import substitution. Encourages long-term private investment in green hydrogen derivatives. Positions India as a competitive green ammonia exporter.
• Boosts India’s clean fertiliser transition and import substitution.
• Encourages long-term private investment in green hydrogen derivatives.
• Positions India as a competitive green ammonia exporter.