Solar Energy Corporation of India has launched a major tender for green methanol production and supply under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, part of the National Green Hydrogen Mission, as per news reports.
The tender covers supply of 5 lakh tonnes per annum of green methanol and has been issued through a cost-based competitive bidding process under the first tranche of the SIGHT scheme.
The bidding process opened on Wednesday and will remain active until June 8, when bids are scheduled to be opened. SECI has also planned a pre-bid meeting next week.
SECI, functioning under the Ministry of New and Renewable Energy, is the nodal agency for the National Green Hydrogen Mission and has been tasked with promoting markets for green hydrogen and its derivatives, including green methanol.
The Union Cabinet approved the National Green Hydrogen Mission with a total outlay of ₹19,744 crore up to 2029-30.
Out of this, the SIGHT programme carries an allocation of ₹17,490 crore and includes incentives for domestic electrolyser manufacturing and green hydrogen production.
Under the tender rules, contract manufacturing of green methanol will not be permitted. Only companies establishing dedicated production facilities will qualify for incentives under the scheme.
According to the tender document, green methanol producers will be required to set up production units along with storage and transportation infrastructure to support supply up to the designated delivery point. The objective is to maximise green methanol production within India.
The Green Methanol Purchase Agreement under the scheme will remain valid for 10 years. However, incentive support for allocated production capacity will be provided for 3 years from the commencement of production and supply, as specified in the Letter of Award.
Companies will be allowed to produce green methanol using renewable energy sourced from co-located plants, remotely located renewable energy projects or electricity purchased through power exchanges.
Methanol is commonly used as a replacement for petrol and diesel in transport, energy and cooking applications. In the shipping industry, it is increasingly being used instead of bunker fuel.
While conventional methanol is generally produced using fossil fuels such as gas or coal gasification, green methanol is produced using biomass and agricultural residue, supporting lower-carbon industrial and transport systems.
Read More: India and EU Launches ₹169 Crore Joint Initiative to Strengthen EV Battery Recycling!
The latest SECI tender marks another step in India’s green fuel transition strategy, with green methanol expected to play an important role in decarbonising industrial operations and the shipping sector.
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Published on: May 7, 2026, 11:09 AM IST
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