India Fast‑Tracks World’s Largest Green Methanol Tender

India is set to finalize tenders for 500,000 metric tonnes of green hydrogen–based methanol within the next two months, under Solar Energy Corporation of India Limited (SECI)'s SIGHT scheme. The bidding process began in May 2026, with contracts expected to be awarded by September 2026, marking a major milestone in India’s National Green Hydrogen Mission.

Green hydrogen methanol (or e-methanol) is a clean liquid fuel made by combining green hydrogen with captured carbon dioxide. It turns volatile hydrogen into a stable liquid that is easy to store and transport.

SECI has officially announced the 500,000‑tonne green methanol tender under the National Green Hydrogen Mission. The tender was published on May 6, 2026, with bids opening on June 8, 2026, and includes a 10‑year Green Methanol Purchase Agreement (GMPA).

The upcoming tender is the world’s largest because no other country has yet launched a single procurement of this scale for green methanol, making it a landmark in global shipping decarbonisation and hydrogen‑derived fuels.

Most global initiatives (EU, US, China) are in the 50,000–200,000 MT range, often fragmented across multiple plants. India’s tender dwarfs other announced projects.

Part of India’s National Green Hydrogen Mission, with SECI acting as the central buyer, ensuring guaranteed demand and revenue visibility, this is the first structured offtake mechanism for green methanol at such scale, backed by a 10‑year Green Methanol Purchase Agreement (GMPA).

Key Tender Details

• Agency: Solar Energy Corporation of India (SECI)
• Scheme: Strategic Interventions for Green Hydrogen Transition (SIGHT), Mode‑2C‑Tranche‑I
• Capacity:500,000 MT per annum of green methanol
• Bidding Process: Cost-based competitive bidding, single-stage, two-envelope system
• Eligibility: Only new production facilities (greenfield projects); existing methanol plants excluded
• Contract Tenure:10-year Green Methanol Purchase Agreement (GMPA) with SECI
• Bid Range: Minimum 50,000 MT/year; maximum 250,000 MT/year per bidder
• Financials:
  • Earnest Money Deposit (EMD): ₹5,000 per MT
  • Performance Bank Guarantee (PBG): ₹7,500 per MT
  • Non-refundable bid processing fee (capacity-linked)

Strategic Importance

• Shipping Decarbonisation: First tranche prioritizes maritime fuel transition
• Climate Standards: MNRE notified Green Methanol Standard (≤0.44 kg CO₂eq/kg) in March 2026
• Energy Security: Reduces reliance on imported fossil fuels
• Global Leadership: Positions India alongside EU and US in green methanol adoption

Comparison: Green Methanol vs Alternatives

Fuel	Carbon Intensity	Use Cases	India’s Policy Support
Green Methanol	≤0.44 kg CO₂eq/kg	Shipping, chemicals	SIGHT Mode‑2C, GMPA
Green Ammonia	≤0.5 kg CO₂eq/kg	Fertilizers, energy storage	SIGHT Mode‑2A auctions
Fossil Methanol	>2.0 kg CO₂eq/kg	Chemicals, fuels	No incentives

Risks & Challenges

• Financing: High upfront costs; long-tenor GMPA helps mitigate
• Technology Readiness: Scaling green hydrogen electrolysis and methanol synthesis
• Global Competition: EU shipping corridors and US Inflation Reduction Act subsidies may outpace India
• Compliance: Strict adherence to MNRE’s carbon intensity standards required

Next Steps

• SECI will finalize bids by September 2026
• Selected producers will begin supply under GMPA, with financial incentives for 3 years
• India aims to integrate green methanol into shipping fuel corridors and chemical industries

Why It’s the World’s Largest

• Scale: At 500,000 MT per annum, India’s tender dwarfs other announced projects. Most global initiatives (EU, US, China) are in the 50,000–200,000 MT range.
• Single Tranche: India has bundled half a million tonnes into one consolidated tender, unlike fragmented projects elsewhere.
• Global Benchmark: First structured offtake mechanism for green methanol at this scale, backed by a 10‑year GMPA.
• Policy Backing: Part of India’s National Green Hydrogen Mission, with SECI acting as central buyer.

Global Comparison

Country	Largest Announced Capacity	Structure	Status
India	500,000 MT (single tender)	SECI GMPA, 10 years	Tendering, 2026
EU	200,000 MT (multiple plants)	Shipping corridors, subsidies	Under construction
US	150,000 MT (IRA‑backed)	Private projects, tax credits	Announced
China	100,000 MT (regional pilots)	Provincial support	Operational pilots