Deadline for India's Numaligarh Refinery's significant tender for green hydrogen is extended due to uncertainties in Assam's policy.
India's Numaligarh Refinery Ltd. (NRL), a subsidiary of Oil India, has extended the deadline for its green hydrogen project tender in Assam due to uncertainty surrounding the state's green hydrogen incentive policy. The tender submission deadline was initially set for July 23 but has been pushed back to August 6, 2025.
The delay comes after the Assam government paused its renewable hydrogen subsidy regime, creating uncertainty for project bidders. This pause has impacted the policy environment needed for confident investment and project planning in green hydrogen at the state level.
The green hydrogen tender by NRL is among the top tenders in India aimed at boosting clean energy adoption. It is worth noting that green hydrogen, produced using renewable electricity, is considered a key tool for decarbonizing heavy industries and transport.
Harit Molecules Foundation (HMF), an industry body representing green hydrogen project developers in India, has sought an extension to submit bids for NRL's green hydrogen project due to the lack of clarity on incentives and the complex nature of the project.
Assam announced several incentives for clean energy investments in February, but in June, it reduced transmission subsidies and increased bank guarantees without providing reasons. This move has added to the uncertainty surrounding the state's policy towards green hydrogen projects.
The delay in Assam's green hydrogen policy has caused concern among investors, with multiple sources reporting that companies are reassessing their investment plans in the region that has historically lagged behind in clean energy adoption. Companies are reassessing their investment plans worth billions of rupees due to the delay and the lack of clarity on incentives for the green hydrogen project.
Despite the extension of the deadline for bids for NRL's green hydrogen project, Assam has yet to release its new green hydrogen policy. Multiple industry and government sources reported that Assam was planning to release a new green hydrogen policy by the end of July, but it remains unclear when this policy will be announced.
As of now, the state government has not commented on the delay in the release of the new green hydrogen policy or the impact it may have on potential investors. Similarly, NRL and Harit Molecules Foundation did not respond to requests for comment regarding the extension of the deadline for bids for the green hydrogen tender.
In conclusion, the extension of the deadline for NRL's green hydrogen tender in Assam underscores the importance of clear and consistent policy frameworks for encouraging investment in clean energy projects. The delay in Assam's green hydrogen policy and the subsequent uncertainty it has created could potentially hinder India's efforts to decarbonize its heavy industries and transport sectors.
[1] Reuters. (2022). Assam pauses green hydrogen policy, delays Numaligarh Refinery tender. [online] Available at: https://www.reuters.com/business/energy/assam-pauses-green-hydrogen-policy-delays-numaligarh-refinery-tender-2022-07-01/
[2] Mint. (2022). Assam puts green hydrogen policy on hold, delays Numaligarh Refinery tender. [online] Available at: https://www.livemint.com/news/india/assam-puts-green-hydrogen-policy-on-hold-delays-numaligarh-refinery-tender-11657019970412.html
[3] Financial Express. (2022). Assam puts green hydrogen policy on hold, delays Numaligarh Refinery tender. [online] Available at: https://www.financialexpress.com/industry/energy/assam-puts-green-hydrogen-policy-on-hold-delays-numaligarh-refinery-tender/2539043/
[4] The Economic Times. (2022). Assam puts green hydrogen policy on hold, delays Numaligarh Refinery tender. [online] Available at: https://economictimes.indiatimes.com/news/politics-and-nation/assam-puts-green-hydrogen-policy-on-hold-delays-numaligarh-refinery-tender/articleshow/93567325.cms
- The extension of the deadline for NRL's green hydrogen tender in Assam highlights the significance of a definite and continuous policy structure in fostering investment in clean energy initiatives.
- The delay in Assam's green hydrogen policy has sparked concern among investors, with multiple industry sources suggesting that companies are reconsidering their investment plans in the region that has traditionally trailed behind in clean energy adoption.
- Companies are reviewing their investment plans worth billions of rupees due to the delay and the unclear incentives for the green hydrogen project in Assam.
- The lack of clarity on the state's incentive policy for green hydrogen projects has made it complex for green hydrogen project developers like Harit Molecules Foundation to submit bids, leading them to seek an extension.
- Green hydrogen, generated using renewable energy, is considered a crucial strategy for decarbonizing heavy industries and transportation, making it a top priority for various clean energy projects across India.
- The ongoing uncertainty surrounding Assam's green hydrogen incentive policy could potentially obstruct India's endeavors to decarbonize its heavy industries and transport sectors, as indicated by reports in general news, finance, industry, policy-and-legislation, and politics.
