Indian JV to supply green hydrogen to refinery for less than $3/kg

Indian refiner Bharat Petroleum Corporation and Singaporean engineering services firm Sembcorp will build a 10,000-tonne-per-year green hydrogen plant at a state-owned refinery after securing a supply contract.

The companies’ 50:50 joint venture (JV) NeuEN Green Energy said the long-term offtake contract would see it build a green hydrogen plant at Numaligarh Refinery’s – a division of state-owned Indian Oil – Assam facility.

According to local reports, the JV will supply green hydrogen at India’s “lowest price” of 279 rupees ($2.97) per kilogramme.

“The landmark tariff achieved demonstrates the importance of well-structured long-term offtake contracts,” said Sembcorp’s Hydrogen Business CEO, Vipul Tuli.

The price is significant. India targets reducing costs to under $2/kg by 2030, while other regions, like Europe, grapple with costs of around $11/kg.

Details on the project remain unclear. However, it is expected to begin operating in 2028 and will use renewables with energy storage to enable round-the-clock operations.

Refinery supply has been viewed as a key enabler of India’s green hydrogen sector. So far, small-scale projects have been commissioned to supply steel operations, and state-backed contracts have been issued for green ammonia supply to fertiliser plants.

Trade group, India Hydrogen Alliance (IH2A), told H2 View that refineries’ adoption of green hydrogen would determine the success or failure of India’s target of producing five million tonnes per year of green hydrogen by 2030.

IH2A estimates that if 10% of grey refinery-fed hydrogen were replaced with green, India could meet 30% of its targets.

While India is setting itself up as a key exporter of green hydrogen to Asia and Europe, IH2A argued the country must develop anchor demand domestically to unlock the wave and scale of export-focused projects required.

“The equipment manufacturing, engineering design and services export opportunity is sensitive to the pace of FID stage project development,” IH2A Secretariat Lead Amrit Singh Deo said. “More domestic FID stage project development will help India realise this.”

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