Indian Oil Corporation Limited (IOCL) has received five bids to establish a 10,000-ton-per-annum (KTPA) green hydrogen plant at its Panipat refinery.
The plant will be India’s largest facility for producing green hydrogen, which is increasingly seen as a climate-friendly fuel alternative.
Green hydrogen has significant potential for industries like refineries, steel plants, and heavy-duty logistics, which are difficult to decarbonize using conventional methods.
Third Tender: Positive Response Despite Previous Setbacks
This marks the third attempt by the state-run oil marketing company (OMC) to set up the plant.
The previous two tenders were cancelled due to a lack of industry interest.
However, this time, IOCL has received a positive response with over five bids. IOCL Chairman stated, “We have good response and now we are evaluating the bids. We plan to award contracts within a month, and within two years, IOCL will have the largest green hydrogen manufacturing plant in India.”
The company will set up the plant on a Build, Own, and Operate (BOO) basis, which is expected to streamline operations and reduce external dependency.
Strategic Importance of Green Hydrogen for IOCL
IOCL is India’s largest hydrogen consumer, and it has the infrastructure to utilize the green hydrogen produced by this new plant.
This is a unique advantage for the company, as it is both the producer and consumer of the commodity.
“Refineries consume hydrogen to remove impurities and increase the yield of refined products. Currently, they use grey hydrogen, but with green hydrogen, we aim to create an entire ecosystem,” the Chairman noted.
The developing mobility sector could also use green hydrogen, but for now, refineries will primarily consume it. IOCL currently consumes over one million tons of the country’s total five million tons of hydrogen demand.
Challenges with Earlier Tenders
The earlier two tenders for the green hydrogen manufacturing plant faced significant challenges.
The Delhi High Court challenged the first tender, leading to its cancellation. The authorities also cancelled the second tender, which had received limited interest from only two entities, for similar reasons.
However, IOCL was undeterred and floated the third tender in September 2024, extending the deadline to January 2025 to accommodate the interested parties.
Future Prospects and Expansion
IOCL’s move towards establishing the green hydrogen plant is part of a broader strategy. This strategy aims to develop a sustainable and scalable hydrogen ecosystem.
By investing in green hydrogen, the company is positioning itself as a leader in India’s energy transition.
With this initiative, IOCL aims to not only cater to its own needs but also help drive the growth of green hydrogen in the country.
As reported by thehindubusinessline.com, the successful establishment of this plant will pave the way. It will also contribute to the expansion of India’s green hydrogen production capacity. This will further solidify the role of renewable energy in the nation’s future energy mix.
