L&T Green secures IOCL tender for 10-KTPA green hydrogen project in Panipat

India’s green energy conglomerate L&T Energy Green Tech (L&T Green) has secured a major contract from Indian Oil Corporation Ltd (IOCL) to develop a 10 kilo tons per annum (KTPA) green hydrogen production facility. The awarded green hydrogen plant will come up at IOCL’s Panipat Refinery and Petrochemical Complex in Haryana and will be executed on a build-own-operate (BOO) basis.

In the bidding, L&T Green emerged as the winning bidder, securing the entire 10-KTPA capacity at a competitive rate of Rs 397 per kilogram of green hydrogen. There were other important participants in the bidding process that would include ReNew E Fuels and NTPC Renewable Energy.

The tender for the green hydrogen plant was issued in April 2024, with the project expected to be commissioned within 30 months. Under the agreement, L&T will supply green hydrogen to IOCL for a period of 25 years.

The IOCL tender has been revised twice before making this award. This project marks a significant step in IOCL’s broader green hydrogen roadmap. The company aims to achieve 350 KTPA of green hydrogen production capacity by 2030, with the Panipat project alone accounting for nearly 50% of that target. The Panipat Complex, currently operating at a capacity of 15 million metric tons per annum (MMTPA), is also undergoing an expansion to reach 25 MMTPA.

IOCL is investing heavily in research and development to diversify its hydrogen production technologies. These include innovative methods like oxysteam biomass gasification and solar-powered electrolysis. Additionally, IOCL is exploring the conversion of existing natural gas pipelines to accommodate hydrogen-blended fuel transport.

The green hydrogen sector received a further boost when the Indian government recently released guidelines defining the criteria for hydrogen to qualify as “green.” According to the new standards, hydrogen must have non-biogenic greenhouse gas (GHG) emissions of no more than 2 kg of CO₂ equivalent per kg of hydrogen, averaged over a year. This certification framework aims to ensure environmental integrity through stringent GHG benchmarks, thorough monitoring, and transparent verification.

IOCL has been mulling to set up green hydrogen units at all of its refineries. This plant is part of a Rs 2.4 trillion green transition plan aimed at achieving net zero carbon emission status by 2046.