Sembcrop's JV with BPCL wins green hydrogen tender

New Delhi: NeuEN Green Energy, a joint venture between BPCL and a unit of Singapore's Sembcorp Industries, has won a tender to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery at a record low price.

NeuEN will develop a green hydrogen production facility at Numaligarh refinery in Assam that will supply green hydrogen at Rs 279 per kg - India's lowest price achieved so far.

The project is expected to begin commercial operations in 2028, the companies said on Tuesday.

"NeuEN Green Energy Pvt Ltd, a 50:50 joint venture between Bharat Petroleum Corporation Limited (BPCL) and Sembcorp Green Hydrogen India Pvt Ltd, has secured a contract to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Ltd (NRL)," they said in a statement.

While the companies did not disclose the financial details, sources said the winning bid was for Rs279 ($3.08) per kg. This is the lowest price discovered in a competitive bidding process in India.

The tender also saw competitive bids at Rs280 per kg and Rs281 per kg, indicating strong market depth and cost convergence at sub-Rs300 levels.

The project will be executed on a build, own and operate basis, with the selected developer supplying gaseous green hydrogen to the refinery for 25 years. The scope includes design, engineering, construction, commissioning, and long-term operations and maintenance.