Indian state props up green H2 with 130,000 t/yr tender

Spanish Market: Fertilizers, Hydrogen
13/05/25

India's western state of Maharashtra is seeking companies to set up subsidised renewable hydrogen production facilities with a total capacity of up to 130,000 t/yr through a tender, as it pursues ambitious output plans.

The bulk of the capacity, namely 50,000-100,000 t/yr, would be established through a single "anchor" project. The remaining 30,000 t/yr would come from much smaller projects and would be split between 2-15 different facilities of 2,000-15,000 t/yr.

The projects would have to be completed within 36 months of receiving the tender award and would have to maintain production for 25 years.

Projects would be able to avail a range of incentives outlined in Maharashtra's green hydrogen policy from 2023.

The large plant could receive up to 30pc capital cost subsidies, while the smaller facilities could get support for up to 15pc.

But subsidies would depend on projects meeting certain criteria which will also be factored into the initial selection process.

This includes criteria for the use of local components in the plant's construction which will have to reach at least 55pc. Projects would also score higher if they use renewable power that is generated in Maharashtra rather than in another state.

Crucially, the large plant would have to sell at least 50pc of its output domestically, which would leave a maximum of 50,000 t/yr for exports. The smaller plants would have to sell all of their output domestically.

Electrolyser performance is also taken into account, with a maximum specific energy consumption of 56 kWh/kg and no more than 1pc annual degradation. The bid submission deadline is 7 July, and a pre-bid meeting is scheduled for 14 May.  Maharashtra has set a target to produce 500,000 t/yr of renewable hydrogen by the end of March 2030, with an allocated budget of 85.6bn rupees ($1bn)—nearly half of India's total allocation for its green hydrogen mission.

Under its policy, a maximum of three anchor projects with a hydrogen production capacity of at least 50,000 t/yr will receive capital subsidies — suggesting that more similar tenders could follow at a later stage.

Last month, state-owned Mahatma Phule Renewable Energy and Infrastructure Technology (Mahapreit) already invited proposals to set up a renewable ammonia plant with a capacity of 60,000-100,000 t/yr. Mahapreit is 51pc owned by Maharashtra's state government, while India's central government holds 49pc.

By Akansha Victor

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