IOCL Stalls Green Hydrogen Plans Again

6 Aug 2024 , 12:39 PM

For the second time, the state-run Indian Oil Corporation Ltd (IOCL) has cancelled the tender to develop the country’s first green hydrogen facility at its Panipat refinery, Haryana.

The tender was notable because it was the first attempt by an Indian corporation to decide the price of green hydrogen through a bidding or market-driven process.

On Monday, IOCL changed the tender status on its website to “cancelled”. According to industry sources, the fuel retailer made the decision after only receiving two bids. ET reported on July 16 that the two companies that had submitted proposals were GH4India and Noida-based Neometrix Engineering.

GH4India is an equal partnership between IOC, ReNew, and L&T.

An industry insider familiar with the situation stated, “It is sad that the procurement has been cancelled yet again, alluding to allegations of preferential treatment for GH4 India. This time around, IOCL acknowledged the industry’s concerns. However, many of the companies that attended the pre-bid meeting elected to stay away.”

IOCL requested bids in August last year to build, own, and manage a 10 KTA (thousand tonnes per annum) green hydrogen generating plant at its Panipat refinery for a 25-year period.

According to the requirements, the successful bidder had to start delivering hydrogen gas within 30 months of the project’s award. According to industry participants, the project will have 75 MW of electrolyser capacity, generate 300 MW of clean energy, and cost $400 million in total.

They did, however, mention certain terms in the bid document that they claimed were slanted in favour of GH4India. ET reported in February that IOCL cancelled the first tender after an industry association filed a petition with the Delhi High Court, arguing that certain of the terms were anti-competitive and biassed in favour of GH4India.

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