Mumbai: L&T Energy Green Tech has emerged as the winning bidder to develop a 10,000 tonnes per annum green hydrogen plant at Indian Oil Corporation’s (IOCL) Panipat refinery in Haryana, according to sources familiar with the matter, reported The Economic Times.
The company, a wholly owned subsidiary of engineering giant Larsen & Toubro, secured the contract by offering to supply green hydrogen at ₹397 ($4.67) per kg, inclusive of 18% GST. L&T edged out NTPC Renewable Energy, which quoted ₹398 per kg ($4.68), and Renew E Fuels, which bid ₹407 per kg ($4.79).
The project will be implemented on a build, own, and operate (BOO) basis for a 25-year period. It marks IOCL’s first major green hydrogen tender, which had drawn interest from over half a dozen companies earlier this year.
“This is a significant business win for L&T in the green hydrogen sector,” said an official familiar with the auction process. The result of the reverse e-auction was announced by IOCL on the afternoon of May 9.
The road to this tender has seen challenges. IOCL had cancelled two previous green hydrogen tenders due to limited industry participation. The current tender was issued on September 11, 2024, and initially set a bid deadline of November 11. However, the deadline was extended twice—ultimately closing on January 6—following requests from participating firms.
