RIL, Tata Motors, IOCL to be key bidders for green hydrogen pilot project: Report

Reliance Industries (RIL), Tata Motors and Indian Oil Corporation (IOC) are likely to be key bidders for the government’s pilot project for the use of green/grey hydrogen (H2) in the transport sector that is in line with the government’s aim to decarbonise the economy and reduce dependence on fossil fuel imports.

The government aims to make India a leader in technology and market in green hydrogen. According to a report in The Economic Times, the pilot project will help identify operational issues and gaps in terms of technology readiness, regulations, implementation, infrastructure and supply chains. 

The bid for the Rs 496-crore, part of the National Green Hydrogen Mission launched in January 2023, opened in February, and closes on Thursday, the report added.

However, bidders must participate as a consortium or partners to ensure the entire value chain from making hydrogen and dispensing it to running vehicles, as per the report. The consortium should include a vehicle manufacturer, hydrogen fuel supplier distributor, as well as other partners. 

As per the sources who told the daily, Reliance is partnering with Ashok Leyland, and Daimler India Commercial Vehicles, while Tata Motors is partnering with IOCL as a consortium. Ashok Leyland is also reportedly partnering with NTPC. 

The H2 corridor project seeks to support the deployment of hydrogen-powered buses, trucks and cars in a phased manner. The successful bidder will be given funds to close the viability gap due to the higher cost of the hydrogen-powered vehicles in the initial years.

The learnings from the pilot project will eventually be used to help intercity buses, truck operators and private car users with the usage of hydrogen-powered vehicles and refueling technologies.