HPCL Invites Bids for 5,000 Tons of Green Hydrogen Supply to Visakh Refinery in 25-Year Contract

HPCL opens bidding for a 25-year green hydrogen supply contract to Visakh refinery, seeking qualified companies to develop and operate a GHGU with a capacity of 5,000 tons annually.

Hindustan Petroleum Corporation Limited (HPCL) has announced an open bid for the annual supply of 5,000 tons of green hydrogen to its Visakh refinery. This long-term contract will cover a period of 25 years, marking a significant step forward in HPCL’s green hydrogen adoption. With bid submissions scheduled for January 21, 2025, HPCL aims to strengthen its commitment to sustainable energy production.

Bid Requirements and Eligibility for Green Hydrogen Supply to HPCL

To qualify for the bid, interested parties must submit an earnest money deposit of ₹10 million. Additionally, the financial requirements include a minimum net worth of ₹750 million as of the last fiscal year, and an annual turnover of at least ₹1 billion in one of the past three years. This ensures that only financially stable and capable entities can undertake the project.

Bidders are expected to demonstrate relevant experience within the oil, gas, or power sectors. Both individual companies and consortiums are eligible to apply. In the case of consortiums, each member must hold at least 26% of the consortium’s equity, fostering accountability among partners involved in the project.

Project Responsibilities and Development Requirements for Bidders

The selected bidder will undertake the development of a Green Hydrogen Generation Unit (GHGU), including the acquisition of land, construction of electrolysers, power systems, and purification units. The winning developer will also handle the installation of pipelines connecting the GHGU to HPCL’s refinery. Integrating this infrastructure into HPCL’s existing hydrogen distribution network will be critical to ensure seamless operation.

Options for Renewable Energy and Power Procurement

To support the GHGU’s power requirements, bidders have two options: they may either establish their own renewable energy projects or secure energy through a Power Purchase Agreement (PPA). This flexibility allows bidders to choose the most efficient way to fulfill the GHGU’s substantial energy needs, reinforcing HPCL’s commitment to renewable and green energy sources.

A Major Milestone in India’s Green Hydrogen Journey

This bid signifies HPCL’s dedication to reducing its carbon footprint and expanding green hydrogen applications. By taking steps to reduce fossil fuel dependency and promote renewable hydrogen production, HPCL aligns with India’s broader goals of sustainable energy development and climate action.