IOC's green hydrogen project sees sparse bids amidst industry concerns: Report

Indian Oil Corp (IOC) has received only two bids for its initiative to establish India’s first green hydrogen plant at the Panipat refinery in Haryana, according to industry sources familiar with the matter reported by The Economic Times. This follows the second attempt at tendering for the project, the first having been scrapped amid allegations of favoritism.

The bidders include GH4India, a joint venture equally owned by IOC, ReNew, and Larsen & Toubro, formed in FY23 to develop green hydrogen and its derivatives like green ammonia and methanol. The second bid comes from Neometrix Engineering, based in Noida, known for its expertise in turnkey projects and gas handling systems, with a history of executing EPC projects for IOC.

This tender by IOC marks India's first effort to determine green hydrogen prices through competitive bidding. However, similar to the previous tender, several major engineering and industrial gas companies refrained from bidding after initially expressing interest during the pre-bid phase.

Last year's cancellation of the initial tender was prompted by allegations of bias and restrictive technical conditions favoring the GH4India consortium, leading to legal challenges. IOC extended the bidding period multiple times over four months to encourage participation, with close to 30 entities obtaining pre-bid documents in May, including prominent domestic and global firms.