NeuEN wins NRL green hydrogen tender at record low Rs 279/kg

New Delhi: NeuEN Green Energy, a joint venture between BPCL and Sembcorp Green Hydrogen India, has secured a contract to supply 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Ltd (NRL) at a record-low tariff. "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)," the companies said in a statement.

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The project will involve setting up a dedicated green hydrogen production facility at the refinery in Assam, with commercial operations targeted for 2028.

Record-low tariff signals market maturity

Sources indicated that the winning bid came in at Rs 279 (USD 3.08) per kg, the lowest price discovered so far in a competitive bidding process in India. The tender attracted closely clustered bids of Rs 280 per kg and Rs 281 per kg as well, pointing to increasing competition and price alignment below the Rs 300 per kg mark.

Build-own-operate model with long-term offtake

The project will be implemented on a build, own and operate basis, under which NeuEN will supply gaseous green hydrogen to the refinery over a 25-year period. The scope covers the full project lifecycle, including design, engineering, construction, commissioning, and long-term operations and maintenance.

The facility will integrate renewable energy with storage solutions to ensure continuous, round-the-clock hydrogen supply, supporting the refinery’s decarbonisation efforts.

BPCL, Sembcorp underline strategic significance

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."

He added, "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."

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."

He noted that the tariff outcome highlights the role of well-structured long-term offtake agreements in enabling cost discovery.

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."

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Partnership strengthens green hydrogen push

The project reinforces BPCL’s efforts to expand across the green hydrogen value chain through NeuEN, positioning it as a supplier of clean energy solutions.

Sembcorp, which has a 7.6 GW renewable energy portfolio in India, brings complementary capabilities to the partnership and is advancing green hydrogen and its derivatives as part of its broader decarbonisation strategy.

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