The Indian government is preparing to launch a large-scale tender for the production of green hydrogen-based methanol, targeting a total capacity of 500,000 tonnes per year, according to a draft request for selection released on Wednesday.
The initiative is aimed at accelerating India’s clean fuel transition by building a domestic supply chain for green methanol, a key alternative fuel for industrial and shipping applications.
Bid Structure and Contract Details
Under the proposed framework, green methanol producers in India will be invited to bid for long-term contracts lasting 10 years. Individual project allocations are expected to range between 50,000 and 250,000 tonnes per year.
Winning bidders will be required to either set up new production facilities or utilise existing infrastructure within India. However, projects that have already received subsidies under the government’s earlier SIGHT programme for green hydrogen or ammonia will not be eligible.
Full Responsibility on Producers
The selected companies will be responsible for delivering the contracted methanol volumes along with bearing all associated costs, including production and infrastructure setup.
The process is being managed by the Solar Energy Corporation of India, which operates under the Ministry of New and Renewable Energy.
Expansion of Green Hydrogen Strategy
This tender follows India’s earlier green ammonia auction programme launched in August last year. Out of 13 contracts issued, 11 have already been signed, collectively accounting for around 724,000 tonnes per year of green ammonia supply.
Officials noted that the winning bids in that auction were significantly lower than comparable international prices, including European green hydrogen-linked ammonia contracts.
Growing Industry Participation
The earlier auctions attracted participation from several major players, including ACME, NTPC, Oriana Power, SCC International, Suryam International, and a joint venture between Jackson Green and Ocior. These firms are now part of India’s expanding green hydrogen ecosystem.
Push Toward 2030 Energy Goals
India has set an ambitious target of producing five million tonnes of green hydrogen annually by 2030. To achieve this, the government has been actively rolling out auctions and support mechanisms for hydrogen, ammonia, and electrolyser development.
The upcoming green methanol tender marks another step in India’s broader clean energy transition strategy, aiming to build large-scale domestic production capacity while reducing dependence on fossil fuel-based alternatives.
