India registered its lowest-ever green hydrogen bid at ₹279/kg in a state refinery tender, highlighting cost declines driven by renewable power tariffs and policy support. Officials aim to expand domestic use and begin green ammonia exports by 2028.
India has recorded its lowest-ever bid price for green hydrogen supply, signalling a shift in the country’s efforts to make the fuel more affordable and commercially viable. The winning bid came in at ₹279 per kilogram (about $3.08), with the selected supplier set to deliver 10,000 tonnes annually to a state refinery in Assam.
The tender was issued by Numaligarh Refinery Ltd., which is majority-owned by Oil India Ltd., and attracted nine bidders. While officials did not reveal the winning company’s name, they said the level of participation reflected growing interest in the sector.
Renewable Energy Minister Pralhad Joshi described the result as an indication that green hydrogen production costs are gradually becoming more competitive. Green hydrogen is produced by using renewable electricity to split water into hydrogen and oxygen, avoiding the carbon emissions associated with conventional methods that rely on fossil fuels.
Globally, the fuel is being explored as a way to reduce emissions in industries such as steel, cement and chemicals, where switching directly to electricity is often not feasible. However, adoption has been slow because production costs remain higher than conventional alternatives, and large-scale demand has yet to materialise fully.
The lower bid price follows a series of policy measures aimed at reducing input costs. These include competitive renewable energy tariffs, financial incentives for hydrogen production and equipment manufacturing, and exemptions on certain transmission charges for electricity used in green hydrogen projects.
Even so, officials acknowledge that demand remains a key challenge. The government is working with refineries and other industrial users to establish a minimum annual demand of 200,000 tonnes at select sites. Discussions are also underway with potential international partners, including in Europe and Japan, regarding the export of green ammonia from 2028.
Industry experts say the latest bid is an encouraging step, but caution that price reductions alone will not determine the sector’s future. Continued investment, infrastructure development and stable policy support will be important if green hydrogen is to move from pilot projects to wider commercial use.
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