Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, New Delhi, 25 September 2025: The cost of green hydrogen—an emission-free fuel generated through water electrolysis—has declined by more than USD 1 per kilogram in recent tenders issued by state-owned oil corporations such as Indian Oil Corporation (IOC), announced Oil Minister Hardeep Singh Puri on Thursday.
Originally priced at USD 5.5 per kilogram, the cost of green hydrogen—an alternative to coal or natural gas in sectors such as steel, cement, and chemicals, as well as a substitute for fossil fuel-derived grey hydrogen in refineries and ammonia production—has now decreased to approximately USD 4.4–4.5 per kilogram in the latest tenders.
In a tender conducted by IOC for an annual production of 10,000 tonnes of green hydrogen at its Panipat refinery in Haryana, Larsen & Toubro submitted a bid of USD 4.5 per kilogram, inclusive of taxes, for a 25-year contract, Puri disclosed at the World Hydrogen India conference organized by S&P Global.