Mumbai: Abu Dhabi-based Ocior Energy has secured the contract to supply 5,000 tonnes of green hydrogen annually to Hindustan Petroleum Corporation Limited’s (HPCL) Visakhapatnam refinery in Andhra Pradesh, according to sources familiar with the development, reports The Economic Times.
The green hydrogen plant will be set up under a build, own, and operate model and will remain in operation for 25 years. Ocior will supply green hydrogen at ₹328 per kilogram, excluding GST—making it the lowest bidder in the tender process. This price comes at a discount compared to the recent Indian Oil Corporation Limited (IOCL) tender, where L&T Energy Green Tech was awarded a contract to supply green hydrogen at ₹336 per kilogram (excluding GST) for its Panipat refinery.
This makes HPCL the second Indian refinery to finalize a green hydrogen supply contract, after IOCL’s Panipat facility. L&T Energy Green Tech will supply 10,000 tonnes of green hydrogen per year to IOCL at ₹397 per kilogram, including an 18% GST.
Ocior Energy, which specializes in the production and supply of green hydrogen and green ammonia, builds and operates its own facilities, including the renewable energy sources needed for these operations. The company has experience executing similar projects in Asia, the Middle East, and North Africa. In India, it is currently working on projects in Gujarat and Odisha.
HPCL floated the tender in October 2024 and attracted interest from over eight bidders. Jakson Green offered ₹345 per kg (excluding GST), coming in second, while L&T’s quote of ₹393 per kg placed it third. ReNew quoted ₹469 per kg, and NTPC came in at ₹505 per kg.
The bids were judged solely on the basis of the quoted price for green hydrogen supply. The selected bidder will be responsible not only for building the hydrogen generation facility—including electrolysers, power systems, and purification units—but also for conducting the necessary surveys to lay pipelines connecting the plant to HPCL’s refinery. This includes securing right-of-way permissions and ensuring that the new systems work smoothly with HPCL’s existing hydrogen infrastructure.
Bidders had the option to either set up their own renewable energy plants or source power through long-term purchase agreements to run the hydrogen facility.
HPCL’s Visakhapatnam refinery has a production capacity of 15 million tonnes per year and currently uses grey hydrogen in several processes. With this project, the company aims to replace a portion of that with green hydrogen as part of its broader shift toward cleaner energy.
