India’s first green hydrogen tender completes

Indian state-owned oil major Indian Oil Corporation Limited (IOCL) has completed its first tender for green hydrogen, according to research firm JMK Research.

The auction requires the winner to supply 10,000 metric tonnes of green hydrogen per annum to IOCL’s Panipat refinery for 25 years at a fixed price determined through bidding.

The government, through the Solar Energy Corporation of India (SECI), had planned to issue similar tenders under its green hydrogen incentive programme, SIGHT. However, delays in the launch of these competitive bids have prompted the industry to step up. Several oil and gas majors, such as IOCL, BPCL, and Mangalore Refinery and Petrochemicals, have issued their own tenders for green hydrogen.

The price of green hydrogen fixed in the IOCL tender is Rs 397 (approximately $4.6) per kilogram, which is “about 27% lower than the global average cost of producing green hydrogen.” The winner was L&T Green, which offered a lower price than other bidders, NTPC and ReNew. The hydrogen production unit will be built at or near the refinery, and L&T Green will own and operate the facility.

IOCL’s planned Panipat refinery expansion will increase hydrogen demand by 84,000 tonnes. This gap will be partially met by green hydrogen procured through a competitive bidding process.

IOCL aims to meet 50% of its hydrogen consumption from green sources by 2030, targeting 350,000 tonnes of green H2 per annum. The project will…