The cost of green hydrogen in India has fallen by more than USD 1 per kg in recent tenders floated by state-owned oil companies, Oil Minister Hardeep Singh Puri said on Thursday. Prices have dropped from USD 5.5 per kg to USD 4.4–4.5 per kg, signalling rapid progress in cost reduction for the zero-emission fuel.

At the World Hydrogen India conference organised by S&P Global, Puri highlighted that Larsen & Toubro quoted USD 4.5 per kg, inclusive of tax, in a tender for 10,000 tonnes per annum of green hydrogen production at Indian Oil Corporation’s Panipat refinery. The contract covers a 25-year supply period.

Subsequent tenders for 5,000 tonnes each from Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) attracted bids of USD 4.39 per kg from Ocior Energy, indicating further price competitiveness. Puri expressed confidence that newer tenders would drive prices down even further.

Green hydrogen, produced by splitting water into hydrogen and oxygen using renewable electricity, is a clean fuel alternative for industries such as steel, cement, chemicals, transport, and power generation. India has set a target of producing 5 million tonnes annually by 2030 under the National Green Hydrogen Mission, which was launched in 2021 to capture 10 per cent of the global market.

Puri described green hydrogen as the “fuel of the future” and said India was uniquely placed to scale production and consumption locally. He emphasised the urgency of transition, noting that several states had already announced dedicated policies to support the sector.