Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

NLC India Invites Bids for 4 MW Green Hydrogen Project in Tamil Nadu

Project to feature PEM electrolyzer technology with a production capacity of 72 kg of hydrogen per hour; bids due by March 24, 2025.

NLC India Limited has issued a tender for the commissioning of a 4 MW proton exchange membrane (PEM) electrolyzer-based green hydrogen project at its facility in Neyveli, Tamil Nadu. The project aims to produce at least 72 kg of green hydrogen per hour, contributing to India’s growing focus on clean energy solutions.

Bidders are required to submit their proposals by March 24, 2025, along with a bid guarantee of Rs0.865 crore. The bids will be opened on the same day. The selected contractor will be responsible for the end-to-end execution of the project, including design, engineering, manufacturing, supply, construction, commissioning, and performance guarantee testing. The project must be completed within 18 months from the date of the letter of award.

Project Scope and Requirements

The scope of work includes setting up a fully containerized 4 MW PEM electrolyzer system, along with all associated subsystems. The project also involves the installation of a hydrogen compression system equipped with two compressors, each capable of handling 36 kg of hydrogen per hour. The compressors will increase the hydrogen pressure from 25 bar (electrolyzer output) to 200 bar and 500 bar. Additionally, a hydrogen storage system with a capacity of 200 kg at 500 bar must be installed.

The selected bidder will also be responsible for obtaining all necessary regulatory approvals. Post-commissioning, the contractor will provide a 12-month free operation and maintenance (O&M) period as part of the warranty or defects liability period, followed by a 48-month paid O&M period.

Eligibility Criteria for Bidders

Bidders must be either manufacturers or channel partners of PEM electrolyzer or PEM stack-based hydrogen generation systems. To qualify, they must have supplied at least one PEM electrolyzer or stack-based system with a minimum capacity of 300 kW, which must have been operational for at least six months prior to the tender opening date.

Alternatively, bidders with experience in executing industrial projects in sectors such as oil & gas, chemicals, power, renewable energy, petrochemicals, hydrocarbons, fertilizers, or hydrogen generation can also participate. These bidders must have completed at least one project valued at Rs70 crore two projects valued at Rs43 crore each, or three projects valued at Rs35 crore each within the last seven years. The completed projects must have been operational for at least one year as of the tender opening date.

Additionally, such bidders must enter into a joint undertaking with a PEM manufacturer or its channel partner that meets the technical criteria for supplying the electrolyzer or stack. Bidders must also demonstrate an average annual turnover of at least Rs26 crore over the last three financial years and have a positive net worth according to their latest audited financial statements.

India’s Green Hydrogen Push

This tender aligns with India’s broader strategy to promote green hydrogen production. In January 2024, the Ministry of New and Renewable Energy (MNRE) released an implementation framework to incentivize the annual production of 200,000 metric tons of green hydrogen. The ministry also issued guidelines for disbursing incentives under Component II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, targeting up to 450,000 metric tons per annum of green hydrogen production.

NLC India’s 4 MW green hydrogen project marks a significant step in India’s transition to clean energy. By leveraging advanced PEM electrolyzer technology, the project aims to bolster the country’s green hydrogen capabilities, supporting both energy security and climate goals.