Indian Oil Corporation (IOCL) has received single bid for its tender to set up its first green hydrogen plant in Panipat. The deadline to submit the bid was 29 November, 2023, and the bid came from GH4 India, which is IOCL’s own joint venture (JV) with Larsen & Toubro (L&T) and ReNew.

The JV, in which all three companies have equal stakes, was formed this year in August. Around 50 players had participated in the pre-bid consultation. However, only one player submitted the bid due to the right of first refusal clause.

On 29 August, 2023, the company issued a tender for a green hydrogen generation unit (GHGU) of 10 kilotonne per annum (KTA) at its existing Panipat Refinery Petrochemical Complex in Haryana. The selected player was expected to maintain and operate the build, own, operate, transfer (BOOT) contract for 25 years.

The right of first refusal clause (Clause 19 of the tender) gives IOCL preferential right to purchase excess green hydrogen generated at the green hydrogen generation unit (GHGU). In case IOCL does not confirm the purchase within 60 days, the operator can offer the gas to third-party customers. However, the price offered to them cannot be lower than what was offered to IOCL.