MEC Intelligence

SECI, the Solar Energy Corporation of India, recently announced the results of its auction for the development of green hydrogen generation facilities with a total capacity of 450,000 metric tons per annum (MTPA). The tender, issued in July 2023, had two categories: Bucket I with 410,000 MTPA and Bucket II with 40,000 MTPA. Bucket I was fully allocated to nine bidders, while Bucket II was undersubscribed.

The bidders for Bucket I had different objectives and capacities. Three bidders, Reliance, ACME and Greenko, each won 90,000 MTPA of capacity. They received an average incentive of Rs 18.9, Rs 30 and Rs 30 per kg of hydrogen, respectively. One bidder, Hygenco, won 75,000 MTPA of capacity, with an average incentive of Rs 25.04 per kg. They are likely to produce and export Ammonia.

Two bidders, Welspun and Torrent Power, each won 20,000 and 18,000 MTPA of capacity, respectively, with an average incentive of Rs 20 and Rs 28.89 per kg. Three bidders, Calcutta Electric Supply Corporation Projects, UPL and JSW New Energy, each won 10,500, 10,000 and 6,500 MTPA of capacity, respectively, with no average incentive. These bidders planned to produce and supply hydrogen to products with green attributes, which are likely to be exported.

The premium sought by the bidders was low, considering that the cost of green hydrogen production was estimated to be in the range of Rs 330-400 per kg, at least double the cost of grey hydrogen. This implied that the bidders were targeting the export market, where they could benefit from the higher prices of ammonia or green products. For instance, in December 2023, the UK government announced the results of the Hydrogen Allocation Round (HAR), with an average strike price of GBP 241 per megawatt-hour (MWh) or GBP 8 per kg of hydrogen (assuming 33 kWh of energy per kg of hydrogen). This set a high price benchmark for the green hydrogen market, creating an opportunity for arbitrage.

A European Investment and Development company partnered with us to strategically enter the US PV solar market. Our objective was to acquire targets with early-stage pipelines that not only complement their end-stage value chain proficiency but also guarantee resilient growth and profits. Through a structured four-step approach, we shortlisted three high-potential acquisition targets, with our client commencing due diligence on one.

To know more about our four step approach, read our case study here : https://mecintelligence.com/impact-stories/Case%20study/seizing-growth-opportunities-in-US-PV-solar-market

Explore growth opportunities with MEC+ today!

We are excited to announce that MEC+ is going to develop a roadmap for a green hydrogen cluster in Kochi supporting the National Green Hydrogen Mission. This tender was floated by GIZ which aims to build effective public private partnership along the entire value chain and ensure eventual offtake of green hydrogen.

Over the last few years, MEC+ has developed expertise in emerging green hydrogen space with respect to understanding technology, regulations and economics. We help investors, developers and supply chain companies in building a route to market in the green hydrogen space and deliver growth.

You can read the news about GIZ tender here: https://energy.economictimes.indiatimes.com/news/renewable/kochi-hydrogen-hub-tender-awarded-to-mec-intelligence-by-giz/102672882

Do let us know if you are interested in having a discussion with us on Green Hydrogen space.

ETEnergyWorld

Kochi hydrogen hub tender awarded to MEC Intelligence by GIZ - ET EnergyWorld The tender was floated by GIZ for the development of a roadmap for a green hydrogen cluster in Kochi, Kerala