(MENAFN- KNN India)
New Delhi, Jul 16 (KNN) In a development that underscores the challenges facing India's nascent green hydrogen industry, Indian Oil Corporation's (IOC) second attempt to secure bids for the country's first green hydrogen plant has garnered only two responses.
This tepid reaction comes despite the project's significance in India's push towards cleaner energy alternatives.
The 10,000-tonnes-per-annum green hydrogen facility, slated for IOC's Panipat refinery in Haryana, has attracted bids from GH4India-a joint venture between IOC, ReNew, and Larsen & Toubro-and Noida-based Neometrix Engineering.
This limited participation stands in stark contrast to the initial interest shown by nearly 30 entities during the pre-bid phase, including several major domestic and international players.
The current scenario is eerily reminiscent of the first tender, which was scrapped amid controversy. Allegations of favouritism and overly restrictive technical conditions that seemingly benefited the GH4India consortium led to legal challenges and ultimately, the cancellation of the initial bid.
Industry insiders suggest that the stringent eligibility criteria, particularly those favouring consortiums with substantial IOC involvement, may be deterring potential bidders.
Some prospective participants have requested deadline extensions to form joint ventures with established industrial gas firms, citing difficulties in meeting the technical requirements independently.
As the technical evaluation of the received bids progresses, the focus remains on criteria such as experience in hydrogen systems, EPC capabilities, and operational expertise in refinery or petrochemical sectors. However, the limited response raises questions about the tender's structure and its ability to foster genuine competition.
This tender holds particular significance as it represents India's first attempt to determine green hydrogen prices through competitive bidding. The outcome of this process could set important precedents for the country's ambitious plans in the green energy sector.
The situation highlights the delicate balance IOC must strike between ensuring project viability and encouraging broad participation.
As India aims to position itself as a global leader in green hydrogen production, the success of pioneering projects like this will be crucial in shaping the industry's future trajectory.
(KNN Bureau)
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