"IOCL Cancels Inaugural Green Hydrogen Tender Amid Delhi High Court Action by Industry Body"

Indian Oil Corporation (IOCL) has announced the cancellation of its inaugural tender for manufacturing green hydrogen, following legal action taken by an industry association against the state-run company in the Delhi High Court, citing alleged conflict of interest.

The country's largest oil marketing company (OMC) revoked the tender for establishing a green hydrogen manufacturing unit with a capacity of 10 kilo tonnes per annum (KTPA) at its Panipat refinery and petrochemicals complex on a build, own, operate, transfer (BOOT) basis. No specific reason was provided for the cancellation.

Initially floated last year, the tender had set the contract period at 25 years, with the deadline for bid submissions set for November 29. According to the terms, the successful bidder was required to supply green hydrogen within 30 months from receiving the letter of award (LoA).

The Independent Green Hydrogen Producers Association (IGHPA), comprising Azure Power, Acme Group, Fortum India, O2 Power, Sprng Energy, and SunEdison Infrastructure, contested the IOCL tender in the Delhi High Court in November last year.

The petition challenged various clauses of the Notice Inviting Tender (NIT), including Clause 19 which established a Right of First Refusal in favor of IOCL's joint venture (JV) firm GH4India. It also contested Clause 20 (xix) and (xvi), which permitted IOCL to reject the lowest bid and exempted the IOCL JV from submitting Earnest Money Deposit (EMD).

GH4India, a JV involving IOCL, L&T, and ReNew, formed in August last year, is dedicated to producing green hydrogen and its derivatives.

IOCL has not provided any response to inquiries regarding the matter. The next hearing in the Delhi High Court is scheduled for March 28.

The cancellation of the IOCL tender carries significant implications as green hydrogen plays a pivotal role as a transition fuel in decarbonizing sectors like heavy-duty long-distance transportation, steel, and refineries.

This tender was anticipated to be the first major stride towards green hydrogen production in India and was expected to establish the commercial price for the commodity.

The Ministry of New and Renewable Energy (MNRE) is spearheading the National Green Hydrogen Mission with an allocated budget of ₹19,744 crore, aiming to position India as a global hub for green hydrogen production, usage, and export.

HBL