Key Takeaways
- India secured its lowest-ever bid for green hydrogen at Rs 279 ($3.08) per kilogram for Numaligarh Refinery.
- The bid involved nine participants and is seen as a pivotal step in India’s clean energy efforts.
- The government is promoting green hydrogen use and aims for 200,000 tons of annual demand by collaborating with local refineries.
Historic Bid for Green Hydrogen
India has achieved a significant milestone in its clean energy initiatives, recording the lowest-ever bid for the supply of green hydrogen. Renewable Energy Minister Pralhad Joshi announced that the bid was Rs 279 ($3.08) per kilogram to supply 10,000 tons of green hydrogen annually to Numaligarh Refinery Ltd., which is mostly owned by Oil India Ltd. in Assam. The tender attracted nine bidders, although details on the winning bidder remain undisclosed.
Joshi hailed the bid as a “historic milestone in India’s clean energy journey” and emphasized that it positions India as one of the world’s most cost-competitive producers of green hydrogen. Production of green hydrogen has been increasingly recognized as critical for reducing emissions in hard-to-abate sectors, including steel and cement. However, demand for this eco-friendly fuel has remained low, causing some investors to retreat from potential projects.
India’s competitive pricing for green hydrogen stems largely from falling renewable energy costs and supportive government measures. These measures include financial aid for green hydrogen production and manufacturing of equipment necessary for its production. Furthermore, the government has eliminated transmission charges for electricity used in the hydrogen production process, providing additional cost savings for producers.
To bolster domestic demand for green hydrogen, New Delhi is actively collaborating with local refineries. Renewable Energy Secretary Santosh Kumar Sarangi indicated that efforts are underway to develop a predicted consumption of 200,000 tons of green hydrogen per year at these facilities. This initiative is part of the broader strategy to enhance the viability and utility of hydrogen across multiple industries.
Additionally, India is eyeing the international market, particularly aiming to commence exports of green ammonia by as early as 2028. Conversations with potential buyers in Europe and Japan are already in progress, demonstrating India’s ambition to become a key player in the global green energy landscape.
The steps taken by India reflect a strategic commitment to not only meet internal energy needs but also position the country as an emerging leader in sustainable energy solutions on the world stage. As the nation continues to innovate in green hydrogen production, the collaboration between government, refineries, and investors will be crucial in realizing these aspirations.
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