India Records Lowest-Ever Price for Green Hydrogen in Tender

Why It Matters

The breakthrough price makes green hydrogen economically viable for heavy industry, accelerating India’s decarbonisation roadmap and enhancing its export potential in the emerging clean‑fuel market.

Key Takeaways

• ₹279/kg bid sets Indian green hydrogen record.
• 10,000 tons/year supply contract with Numaligarh refinery.
• Waived transmission charges cut production costs significantly.
• Goal: 200,000 tons domestic demand by 2026.
• Export plans target green ammonia by 2028.

Pulse Analysis

Green hydrogen, produced by electrolyzing water with renewable electricity, is widely regarded as the missing link for decarbonising energy‑intensive sectors such as steel, cement and chemicals. While Europe and Japan have invested heavily in pilot projects, cost has remained a barrier, with most commercial offers exceeding $5 per kilogram. India’s recent tender, however, delivered a price of ₹279 ($3.08) per kilogram, the lowest ever recorded in the country and competitive on a global scale. This achievement stems from a combination of abundant solar and wind resources, aggressive renewable‑energy tariffs, and a policy framework that subsidises capital and operational expenditures.

The tender attracted nine qualified bidders, underscoring a maturing domestic supply chain for electrolyzers, compressors and balance‑of‑plant equipment. Crucially, the government’s decision to waive transmission charges for the electricity used in electrolysis removed a significant cost component, allowing producers to pass savings onto buyers. Supplying 10,000 tonnes per year to Numaligarh Refinery, a subsidiary of Oil India Ltd., the contract demonstrates that large‑scale industrial users can now source green hydrogen at near‑market rates. This price point is expected to trigger further procurement from steel mills and cement plants seeking to meet tightening emissions standards.

Looking ahead, New Delhi has set an ambitious target of 200,000 tonnes of domestic green hydrogen consumption by the end of the decade, coupled with plans to export green ammonia as early as 2028. If the current cost trajectory holds, Indian producers could become price leaders, challenging European and Australian projects that rely on higher renewable tariffs. Nevertheless, scaling up will require sustained investment in electrolyzer capacity, grid integration and certification mechanisms for international trade. Successful execution could cement India’s role in the global clean‑fuel value chain and provide a template for other emerging economies.