Key Takeaways
- NeuEN Green Energy will supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Limited starting in 2028.
- A new hydrogen production facility will utilize renewable energy and advanced storage systems to ensure continuous supply.
- The partnership aims to support India’s transition to low-carbon hydrogen for refining, contributing to net-zero goals.
Green Hydrogen Supply Contract Secured
NeuEN Green Energy, a collaboration between Bharat Petroleum Corporation Limited (BPCL) and Sembcorp Industries, has announced a significant contract to provide 10,000 tonnes per year of green hydrogen to Numaligarh Refinery Limited (NRL). This initiative was publicized on Tuesday and marks a crucial step in the ongoing shift toward sustainable energy solutions.
The project entails the establishment of a dedicated green hydrogen production facility at NRL’s refinery located in Assam. Under a long-term offtake agreement, the facility is expected to commence commercial operations in 2028. This arrangement is designed to blend renewable energy sources with advanced energy storage systems, ensuring a reliable hydrogen supply that supports NRL’s ambitious targets for reducing carbon emissions.
Sanjay Khanna, Chairman and Managing Director of BPCL, expressed that this venture is in line with the company’s commitment to developing a diversified energy portfolio for the future. By enhancing capabilities within the green hydrogen sector, BPCL aims to position itself strategically within the evolving energy landscape.
The collaboration between BPCL and Sembcorp leverages the former’s strong domestic infrastructure and market reach alongside Sembcorp’s extensive expertise in renewable energy. Currently, Sembcorp manages a robust portfolio of 7.6 gigawatts (GW) of renewable energy assets in India, which equips it to efficiently handle large-scale green hydrogen production.
Vipul Tuli, CEO of Sembcorp’s hydrogen business, highlighted that the project’s success is fundamentally dependent on structured, long-term offtake agreements which are essential for the commercial viability of green hydrogen. This strategic approach reflects a growing trend among Indian refiners, who are actively seeking ways to incorporate low-carbon hydrogen alternatives into their refining operations, moving away from traditional grey hydrogen.
This green hydrogen supply agreement is part of a broader push towards cleaner energy solutions in India, aligning with national objectives for energy transition and achieving net-zero carbon emissions. As the nation continues to explore sustainable alternatives in various sectors, this partnership is poised to play a significant role in shaping the future of energy in India, especially in the refining industry.
Overall, as the energy landscape undergoes transformative changes, partnerships like the one between BPCL and Sembcorp demonstrate a proactive approach to establishing a greener, more sustainable future. The focus on integrating renewable resources with cutting-edge technology will be key to meeting increased demands for cleaner energy solutions.
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