Numaligarh Refinery Awards Contract at ₹279/kg

India’s push for cleaner fuels hit a high note on February 2026 when Numaligarh Refinery Limited (NRL) inked a build-own-operate deal with NeuEN Green Energy—a 50:50 JV between Bharat Petroleum Corporation Ltd and Sembcorp Industries. They’ll deliver 10,000 metric tonnes per annum of green hydrogen at a jaw-dropping ₹279/kg, announced by Union Minister Pralhad Joshi. This 25-year pact reaffirms India’s green hydrogen drive under the National Green Hydrogen Mission.

Context and Key Facts

NRL first floated the tender in August 2024, reissuing it in May 2025. This Assam refinery, majority-owned by Oil India Ltd and running since 1999 in the Brahmaputra valley, is ramping up to 9 MTPA via its Expansion Project (NREP). NeuEN’s ₹279/kg bid outshone about nine contenders, smashing global benchmarks and locking in a long-term supply to fuel NRL’s cleaner energy ambitions.

Technical Aspects of Electrolysis and Biomass

NeuEN Green Energy can churn out green hydrogen two ways: via electrolysis powered by renewable energy or through biomass gasification plus reforming. The tender insists on grid-sourced renewables—whether they generate it themselves, buy from power exchanges, or tap third parties—while banning any fossil-based inputs. That flexibility lets them drive down costs and guarantee a carbon-free hydrogen stream.

Strategic Implications and Policy Alignment

This price landmark propels the National Green Hydrogen Mission—launched in 2023 with a 5 million MTPA target by the early 2030s and sweetened by hefty incentives. At ₹279/kg, the bar for industrial decarbonization in refining, fertilisers and steel just got a lot lower. It also shores up India’s energy security by slashing fossil imports, positioning the country as a budding exporter of clean ammonia and other hydrogen derivatives.

Local and Regional Impact

Nestled among tea gardens and biodiversity hotspots, Assam’s Numaligarh refinery has been tied to oil and gas since the late 19th century. This green hydrogen tie-up is set to create jobs, spark supply chains for electrolysers and biomass feedstock, and upgrade everything from storage facilities to the grid—paving the way for smoother renewable power evacuation.

Collateral Impacts and Future Outlook

Setting a global record, this deal could turbocharge investments in hydrogen production, electrolysis manufacturing and renewable capacity. With India doubling its budget to ₹600 crore for FY 2026-27, incentives are more enticing than ever. Sure, land grabs, biomass logistics and a 25-year O&M risk loom large, but if NeuEN nails it at scale, we’ll see more long-duration contracts for clean ammonia, hydrogen storage and downstream uses like fuel cells.

As the world watches, the Numaligarh deal might just become a blueprint for industrial decarbonization across Asia and beyond. With policy, tech and economics finally in sync, green hydrogen is stepping out of the niche and becoming a true cornerstone of India’s sustainable energy transition.