On 25 December, Mint reported that the tender had acquired an solely bid from GH4India Pvt Ltd, which is IOCL’s personal three way partnership (JV) with infrastructure and engineering main Larsen & Toubro (L&T) and renewable vitality firm ReNew. The JV, during which all three corporations have equal stakes, was fashioned in August 2023.
Indian Oil, L&T, ReNew and union ministry of petroleum and pure gasoline didn’t reply to emailed queries.
Additional, an business physique of inexperienced hydrogen corporations—Impartial Inexperienced Hydrogen Producers’ Affiliation (IGHPA)—approached the Delhi Excessive Court docket in November, alleging bias in the direction of IOCL’s JV within the tender clauses. The plea was admitted on 29 November, and the courtroom had issued discover to the Centre and different events asking to file affidavits.
Within the newest listening to on 2 February, 2024, the courtroom additionally directed the business physique to submit its rejoinder to the response of the federal government and Indian Oil on the earliest.
The excessive courtroom, which is scheduled to subsequent hear the matter on 28 March, didn’t keep the tender. Nonetheless, the oil advertising and marketing firm, which had floated the tender on 29 August, introduced its cancellation by a corrigendum on 21 February.
IGHPA had petitioned the Delhi excessive courtroom in opposition to the tender, notably in opposition to the suitable to first refusal clause.
The appropriate to first refusal clause (Clause 19 of the tender) provides IOCL preferential proper to buy extra inexperienced hydrogen generated on the inexperienced hydrogen technology unit (GHGU). In case IOCL doesn’t affirm the acquisition inside 60 days, the operator can provide the gasoline to third-party prospects. Nonetheless, the value supplied to them can’t be decrease than what was supplied to IOCL. Different phrases and situations supplied, too, have to be much less beneficial than these supplied to IOCL.
The events must agree that IOCL shall be entitled to train its proper of refusal each time the amount of the inexperienced hydrogen generated on the GHGU will increase on account of capability augmentation or technological upgradation, modification or restructuring, mentioned individuals within the know.
IOCL’s tender, launched on 29 August, was for a BOOT (construct, personal, function, switch) contract for a GHGU of 10 kilotonne each year (KTA) at its present Panipat Refinery Petrochemical Advanced in Haryana. The tender was for a contract of 25 years, whereby the chosen participant would preserve and function the mission for the period.
IGHPA was fashioned in 2022 by six renewable vitality corporations—Azure Energy, Acme Group, Fortum India, O2 Energy, Sprng Vitality and SunEdison Infrastructure. The business physique argued that the federal government can’t arbitrarily select any individual it likes for coming into right into a business relationship, thereby discriminating between equally located individuals.
“They additional submit that the Supreme Court docket has repeatedly warned in opposition to particular clauses in tenders which have the impact of favouring a single tenderer,” the Excessive Court docket order dated 29 November had famous.
The inexperienced hydrogen area within the nation is in a nascent stage and is anticipated to choose up within the coming years.
Beneath the federal government’s Strategic Interventions for Inexperienced Hydrogen Transition (SIGHT) Scheme, Reliance Inexperienced Hydrogen and Inexperienced Chemical substances, ACME Cleantech, Greenko ZeroC, Welspun New Vitality, Torrent Energy are among the many gamers chosen for establishing inexperienced hydrogen tasks.
Beneath the nationwide inexperienced hydrogen mission, the federal government goals to deliver a complete funding of ₹8 trillion into the nation by 2030.
Final 12 months, Reliance Industries introduced that it has chalked out a roadmap for bringing down the value of inexperienced hydrogen to $1 per kg in India. It could produce inexperienced hydrogen and electrolyzer below its ₹75,000 crore funding plan for vitality transition and inexperienced vitality.
ACME Group, together with Japan’s IHI Company plans to speculate ₹60,000 crore in establishing a inexperienced hydrogen mission in Odisha. The 2 corporations final month tied as much as provide ammonia (a spinoff of inexperienced hydrogen) to Japan.
Inexperienced hydrogen is a key catalyst for the formidable goal of decarbonizing the refinery course of and reducing emissions. Hydrogen is primarily used within the refining, metal and fertilizer sectors.
The nation’s refining sector consumes round 2 million tonnes of gray hydrogen yearly, with IOCL proudly owning one of many largest shares of the nation’s refining output. IOCL has additionally set an formidable internet zero goal of 2046, the 12 months of the centenary of India’s Independence.
Gray hydrogen is produced from pure gasoline, a fossil gasoline, thereby resulting in larger emissions through the manufacturing course of, whereas inexperienced hydrogen is produced from renewable vitality, like photo voltaic and wind.
Supply: Live Mint