Strategic Initiatives for Green Hydrogen Transition (SIGHT) Program

Regarding the Strategic Interventions for Green Hydrogen Transition (SIGHT) Initiative:

What does it represent?

A key financial element within the National Green Hydrogen Mission, designed to accelerate India’s shift to green hydrogen.

Ministry: Carried out by the Ministry of New and Renewable Energy (MNRE) in collaboration with the Ministry of Petroleum and Natural Gas (MoPNG).

Goals:

Increase the production and utilization of Green Hydrogen in India.

Ensure green hydrogen is as affordable as fossil fuel options.

Stimulate internal demand in important industries.

Methods of Implementation:

Mode 1: Rewards given to the least motivated incentive seeker.

Mode 2A: Combined demand for Green Ammonia (constant incentive).

Mode 2B: Combined demand for Green Hydrogen (stable motivation)

Main Characteristics of the SIGHT Program:

Expenditure: ₹17,490 crore designated for SIGHT from a total mission budget of ₹19,744 crore, concentrating on support for incentives and infrastructure.

Incentive Rates (Mode 2B): ₹50 per kg (Year 1), ₹40 per kg (Year 2), ₹30 per kg (Year 3) to encourage initial uptake and slow market transition.

Bidding Procedure: SECI and Oil PSUs carry out competitive reverse auctions to identify the lowest bidders and consolidate demand.

Standard Compliance: Incentives are available solely for hydrogen that meets recognized "Green Hydrogen" criteria.

Oversight: A collaborative committee from MNRE and MoPNG manages execution, guarantees adherence, and addresses problems.

Regarding Green Ammonia in the Initial SECI Auction (Mode-2A):

What is Sustainable Ammonia?

Green Ammonia is ammonia (NH₃) generated from green hydrogen (through electrolysis powered by renewable energy), an essential component utilized in fertilizers, shipping fuel, and chemical production.

Auction Highlights:

Winning price: ₹55.75/kg (USD 641/MT).

Offtaker: Paradeep Phosphates Limited, Odisha.

Amount: 75,000 MTPA from a total of 7.24 lakh MTPA tender.

Term: Stable 10-year provision, enhancing affordability and supply chain dependability.

Importance:

Enhances India's shift to clean fertilizers and reduces reliance on imports.

Promotes sustained private investment in green hydrogen byproducts.

Establishes India as a strong competitor in green ammonia exports