A major development in India’s clean energy journey has emerged as Bharat Petroleum Corporation Limited (BPCL), in partnership with Sembcorp Industries, has secured a contract to supply green hydrogen to Numaligarh Refinery Limited (NRL). The project, located in Assam, stands out for achieving a record-low price of ₹279 per kilogram, setting a new benchmark for affordable green hydrogen production in India.
The project will involve setting up a green hydrogen plant that uses renewable energy to produce hydrogen through electrolysis. This process splits water into hydrogen and oxygen without releasing carbon emissions, unlike conventional hydrogen production methods that depend on fossil fuels. As a result, green hydrogen is considered a key solution for reducing emissions in industries such as oil refining.
The contract was awarded after a competitive bidding process that included several major energy companies. The BPCL-Sembcorp joint venture emerged as the winner by offering the lowest and most efficient pricing. For NRL, adopting green hydrogen is part of its broader strategy to reduce its carbon footprint and support India’s clean energy transition.
This move is also aligned with the government’s National Green Hydrogen Mission, which aims to position India as a global hub for green hydrogen production and exports. By integrating green hydrogen into refinery operations, NRL is taking a significant step toward sustainable industrial practices.
Industry experts believe that the ₹279/kg price is a turning point for the sector. High production costs have long limited the adoption of green hydrogen. This project shows that with the right scale and technology, costs can be reduced significantly. It is expected to attract more investments and accelerate the growth of green hydrogen infrastructure in the country.
Overall, the deal reflects strong collaboration between Indian and global energy players and signals growing momentum in India’s shift toward a low-carbon economy.
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