L&T Energy Green Tech (L&T Green) has won the Indian Oil Corporation’s (IOCL) auction to set up a green hydrogen generation unit of 10 kilo tons per annum (KTPA) capacity on a build-own-operate basis at its Panipat Refinery Petrochemical Complex, Haryana.

The company won the entire 10-KTPA capacity at a rate of ₹397 (~$4.66)/kg.

ReNew E Fuels and NTPC Renewable Energy also participated in the bidding process.

The tender was floated in April 2024.

The project must be completed within 30 months.

L&T will supply green hydrogen to IOCL for 25 years.

IOCL plans to generate 350 KTPA of green hydrogen by 2030. This project would comprise 50% of its total green hydrogen capacity.

The Panipat Complex has a capacity of 15 million metric tons per annum (MMTPA), and plans to expand it to 25 MMTPA.

IOCL’s research and development is working on multiple hydrogen production technologies, such as oxysteam biomass gasification-based and solar-powered electrolyzer-based hydrogen generation.

It is also working on converting existing natural gas pipelines to transport hydrogen-blended natural gas.

IOCL and Tata Motors also launched their range of green hydrogen fuel cell buses and operate 15 such vehicles in the Delhi-NCR region.

Recently, the government issued criteria for hydrogen to be officially recognized as “green.” It can only be green hydrogen if its non-biogenic greenhouse gas emissions do not exceed 2 kg of CO₂ equivalent (CO₂e)/kg of hydrogen, averaged over 12 months. The certification program aims to establish rigorous standards for GHG emissions, with robust monitoring and transparent verification procedures.

In 2024, the Ministry of New and Renewable Energy unveiled a program to promote innovative production and utilization of green hydrogen across various sectors. The initiative aims to support pilot projects exploring novel methods and pathways for green hydrogen production and use, particularly in residential, commercial, and decentralized applications.