New Delhi, March 24 NeuEN Green Energy, a joint venture between BPCL and a unit of Singapore's Sembcorp Industries, has won a tender to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery at a record low price.
NeuEN will develop a green hydrogen production facility at the Numaligarh refinery in Assam, which will supply green hydrogen at ₹279 per kg – the lowest price achieved in India so far.
The project is expected to begin commercial operations in 2028, the companies said on Tuesday.
"NeuEN Green Energy Pvt Ltd, a 50:50 joint venture between Bharat Petroleum Corporation Limited (BPCL) and Sembcorp Green Hydrogen India Pvt Ltd, has secured a contract to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Ltd (NRL)," they said in a statement.
While the companies did not disclose the financial details, sources said the winning bid was for ₹279 (USD 3.08) per kg. This is the lowest price discovered in a competitive bidding process in India.
The tender also saw competitive bids at ₹280 per kg and ₹281 per kg, indicating strong market depth and cost convergence at sub-₹300 levels.
The project will be executed on a build, own and operate basis, with the selected developer supplying gaseous green hydrogen to the refinery for 25 years. The scope includes design, engineering, construction, commissioning, and long-term operations and maintenance.
Under the contract, NeuEN will develop a green hydrogen production facility at NRL’s refinery in Assam, supported by a long-term off-take arrangement. The project is expected to begin commercial operations in 2028 and will integrate renewable energy with advanced storage solutions to enable reliable, round-the-clock operations to support refinery decarbonisation.
Commenting on the development, Sanjay Khanna, Chairman and Managing Director, BPCL, said, "This project marks a significant milestone in BPCL's journey towards building a future-ready and resilient energy portfolio."
Through NeuEN, BPCL is strengthening its presence across the green hydrogen value chain and progressing towards becoming a supplier of clean energy solutions.
"Securing this project through a competitive bidding process reflects both the evolving maturity of the green hydrogen sector and our focus on developing scalable, market-aligned solutions. As we move forward, our emphasis will remain on building robust execution capabilities and contributing meaningfully to industrial decarbonisation and India’s long-term energy security," he said.
Vipul Tuli, President & CEO, Renewables, West, and CEO, Hydrogen Business, Sembcorp, said, "This award marks a significant step forward in advancing India's green hydrogen ambitions and aligns closely with Sembcorp’s strategy to enable a lower-carbon energy future."
The landmark tariff achieved demonstrates the importance of well-structured long term off-take contracts, he said.
Shelly Abraham, Chairman, NeuEN, said, "By combining BPCL’s strong domestic market presence and infrastructure capabilities with Sembcorp's global experience in renewable energy, we are enabling the integration of low-carbon solutions into refining operations and supporting long-term industrial decarbonisation."
Sembcorp brings complementary strengths to the partnership and continues to advance green hydrogen and its derivatives as key decarbonisation pathways. With a 7.6GW renewables portfolio in India, Sembcorp is well-positioned to support large-scale, cost competitive green hydrogen production to help meet national and industrial decarbonisation goals.