Government’s first attempt to price green hydrogen competitively hits a roadblock
Indian Oil Corporation (IOCL) has for the second time scrapped its tender to build India’s first green hydrogen plant at its Panipat refinery. The state-owned energy giant pulled the plug on the project after receiving only two bids, according to reports.
The decision marks another setback for India’s ambitions to become a global leader in green hydrogen production. The tender was seen as a crucial step in establishing a market price for the clean fuel.
GH4India, a joint venture between IOCL, ReNew Power, and Larsen & Toubro, and Noida-based Neometrix Engineering were the only two companies to submit bids.
The first attempt to tender the project in August last year also ended in failure. Industry sources claimed the tender terms favoured GH4India, leading to accusations of bias. A subsequent legal challenge forced IOCL to cancel the tender.
The Panipat project was envisioned as a 10,000 tonne per annum green hydrogen production facility with a 75-megawatt electrolyser. It was expected to cost around $400 million.
The repeated failures to attract sufficient interest in the tender highlight the challenges India faces in developing a competitive green hydrogen industry. The government will need to address the concerns of potential bidders and create a more conducive environment for investment if it wants to achieve its clean energy goals.