26th March 2026
India’s green hydrogen ambitions have taken a significant leap forward as a joint venture between Bharat Petroleum Corporation Limited (BPCL) and Sembcorp Industries has secured a landmark contract to supply green hydrogen at a price below $3 per kilogram. The project, led by their JV NeuEN Green Energy, will supply around 10,000 tonnes of green hydrogen annually to the Numaligarh Refinery in Assam, with operations expected to begin by 2028.
What makes this development particularly noteworthy is the record-low tariff of approximately ₹279/kg (around $2.97/kg), making it the cheapest green hydrogen price discovered in India so far. This marks a sharp decline compared to earlier projects, where prices were significantly higher, highlighting rapid cost improvements in production and strong competition in the sector. The deal is backed by a long-term supply agreement, which helps developers secure stable demand while enabling refiners to transition toward cleaner fuel alternatives.
The project is expected to play a crucial role in decarbonising refinery operations, as hydrogen is widely used in refining processes but traditionally produced using fossil fuels. By replacing conventional “grey hydrogen” with renewable-based green hydrogen, the refinery can significantly reduce its carbon footprint. This aligns with India’s broader strategy under the National Green Hydrogen Mission, which targets large-scale production and aims to position the country as a global hub for clean hydrogen.
Beyond cost reduction, the deal signals growing maturity in India’s green hydrogen market, with pricing now approaching levels competitive with conventional hydrogen in some cases. It also demonstrates how structured tenders and long-term contracts can accelerate adoption by reducing financial risks for both producers and buyers. As more such projects emerge, India is expected to move closer to its goal of scaling up green hydrogen production, reducing emissions in hard-to-abate sectors, and building a sustainable energy ecosystem for the future.
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