BPCL and Sembcorp JV Secures 10KTPA Green Hydrogen Contract
Filing Summary
Bharat Petroleum Corporation Ltd. (BPCL) and Sembcorp’s joint venture, NeuEN Green Energy, has secured a contract to supply 10,000 tonnes per annum (10KTPA) of green hydrogen to Numaligarh Refinery Ltd. (NRL). The project involves developing a green hydrogen production facility at NRL’s refinery in Assam, with commercial operations expected to commence in 2028. This initiative aligns with BPCL’s strategy to integrate green hydrogen into its operations, supporting India’s energy transition and decarbonization goals. The contract was awarded through a competitive bidding process, setting a new benchmark for green hydrogen pricing.
Bharat Petroleum Corporation Ltd. (BPCL), in collaboration with Sembcorp through their joint venture NeuEN Green Energy Pvt. Ltd., has secured a contract to supply 10,000 tonnes per annum (10KTPA) of green hydrogen to Numaligarh Refinery Ltd. (NRL). This contract marks a significant development in BPCL’s efforts to integrate renewable energy solutions into its operations. The joint venture will establish a green hydrogen production facility at NRL’s refinery located in Assam. The project is part of BPCL’s strategic initiatives to support India’s clean energy transition and decarbonization objectives.
The financial terms of the contract were determined through a competitive bidding process, resulting in the most competitive rate discovered to date for green hydrogen in India. The joint venture will develop the facility under a long-term offtake arrangement, ensuring a stable supply of green hydrogen to NRL. The project aims to enhance the commercial viability of green hydrogen by setting a new global benchmark for pricing, reflecting the increasing cost competitiveness and scalability of green hydrogen solutions in the country.
Operationally, the project involves the construction of a 10KTPA green hydrogen production facility at NRL’s refinery. The facility will integrate renewable energy sources with advanced storage solutions to enable reliable, round-the-clock operations. This setup is designed to support the decarbonization of the refinery’s operations, aligning with national energy transition priorities. The project will feature a hybrid renewable-powered configuration to ensure continuous electrolyser operations, contributing to the greening of India’s refining and industrial ecosystem.
The timeline for the project indicates that commercial operations are expected to commence in 2028. The development of the facility will involve several phases, including the integration of renewable energy sources and the implementation of advanced storage solutions. The long-term offtake arrangement with NRL will support the project’s operational stability and contribute to the decarbonization efforts of the refinery.
The entities involved in this project include BPCL and Sembcorp, through their joint venture NeuEN Green Energy Pvt. Ltd. BPCL, a Fortune Global 500 company and a Maharatna public sector undertaking, brings its extensive experience in the Indian energy sector to the venture. Sembcorp, a global leader in renewable energy, contributes its expertise in large-scale project execution and renewable energy innovation. Together, they aim to deliver a technically sound and market-aligned clean energy solution to support NRL’s decarbonization goals.
This development is significant in the context of India’s energy transition and decarbonization efforts. The project aligns with BPCL’s strategy to integrate green hydrogen into its core operations, supporting national energy transition priorities and long-term decarbonization goals. The competitively discovered tariff sets a new benchmark for green hydrogen pricing, highlighting the increasing cost competitiveness and scalability of green hydrogen solutions in India. This initiative also enhances Northeast India’s contribution to national energy security while advancing the country’s clean hydrogen ambitions.
Sembcorp Industries, a global leader in renewable energy, is focused on driving energy transition through sustainable solutions. The company leverages its sector expertise and global track record to support energy transition and urban development. In India, Sembcorp is a leading independent renewable energy power producer with a balanced portfolio comprising wind, solar, and energy storage assets.
Bharat Petroleum Corporation Ltd. (BPCL) is a Fortune Global 500 company and the second-largest Indian Oil Marketing Company. It is engaged in refining crude oil and marketing petroleum products, with a presence in both upstream and downstream sectors of the oil and gas industry. BPCL is committed to sustainable growth and aims to become a Net Zero Energy Company by 2040, focusing on integrating strategy, investments, and environmental ambitions.