India's Record-Breaking Green Hydrogen Bid
India has achieved a significant milestone in the clean energy sector with its lowest-ever bid for green hydrogen supply. This development is part of the country’s broader efforts to position itself as a leader in cost-competitive green hydrogen production.
Details of the Bid
- Bid Price: 279 rupees ($3.08) per kilogram.
- Supply Quantity: 10,000 tons of green hydrogen annually.
- Recipient: Numaligarh Refinery Ltd., Assam.
- Ownership: Majority owned by state-run Oil India Ltd.
- Participants: Nine bidders participated, though the winning bidder was not disclosed.
Significance
Renewable Energy Minister Pralhad Joshi has termed this as a "historic milestone" in India's clean energy journey. This achievement strengthens India's position as one of the world's most cost-competitive green hydrogen producers.
Challenges and Opportunities
- Current Usage: Demand and usage of green hydrogen remain low, affecting investor confidence.
- Incentives: Factors like low renewable energy costs and government incentives have contributed to competitive pricing.
- Transmission Charges: Complete waiver on transmission charges for electricity used in green hydrogen production further reduces costs.
Future Plans
- Domestic Demand: Efforts are in progress to boost domestic demand by working with local refineries to achieve 200,000 tons of annual consumption.
- Exports: Plans to begin exporting green ammonia by 2028, with ongoing talks with potential buyers in Europe and Japan.
