NGEL issue Tender for Setting up of project(s) in India first Green Hydrogen Hub at Pudimadaka (near Visakhapatnam), Andhra Pradesh – EQ

Summary:

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#### **Key Details:**

– **Issuing Authority:** NTPC Green Energy Limited (NGEL).
– **Project Location:** Green Hydrogen Hub, Pudimadaka (near Visakhapatnam), Andhra Pradesh.
– **RfP Reference:** NGEL/RE-CS/RfP/Pudimadaka/01.
– **Objective:** To select one developer each for Green Ammonia (Parcel A) and Green Methanol (Parcel M).

#### **Project Structure & Scope:**

NGEL is developing a large-scale “plug-and-play” Green Hydrogen Hub. The Hub will provide common infrastructure, allowing developers to focus on their core production facilities.

– **Land Parcels on Offer:**
– **Parcel A:** Up to 30 acres for a **Green Ammonia** project.
– **Parcel M:** Up to 30 acres for a **Green Methanol** project.
– **”Greenshoe Option”:** NGEL may offer an additional 30 contiguous acres to a selected developer, at its sole discretion.

– **NGEL’s Scope (Common Infrastructure):** NGEL (or its agencies) will develop and provide the following utilities to the selected developers:
– Renewable power supply (from Andhra Pradesh).
– Land on lease (upfront payment).
– Water supply (raw, desalinated, DM water).
– CO2 supply (for Methanol), N2 supply (for Ammonia).
– Grid connectivity.
– Common port/jetty access, storage, and logistics.

– **Developer’s Scope:** The successful bidder must:
– Sign Definitive Agreements to source all utilities exclusively from NGEL.
– Set up the process plant, in-plant utilities, and safety systems within their plot boundary.
– Secure offtake agreements for the final product.
– Obtain all statutory approvals for the production facility.

#### **Commercial & Financial Framework:**

– **Bid Security (EMD):** **INR 1 Crore (10 Million)** per parcel, in the form of EFT, Bank Guarantee, or Insurance Surety Bond.
– **Performance Security:** Equivalent to **three (3) months of Minimum Guaranteed Payments** (fixed charges + take-or-pay obligations) under the utility agreements. Valid until 3 months after Commercial Operation Date (COD).
– **Pricing:** The commercial terms (tariffs for land, power, water, etc.) are not pre-set. They will be **mutually agreed upon** between NGEL and the selected developer after the bidding process, before issuing a Letter of Intent (LoI).

#### **Eligibility & Bid Rules:**

– **Participants:** Global/Indian companies, Joint Ventures (JVs), or Consortia.
– **The “One Bidder, One Parcel” Rule:** A single Bidder (including affiliates) can bid for both parcels but can be awarded **only one**. If a bidder ranks first for both, they must indicate a preference, and the other parcel goes to the next highest-ranked bidder.
– **Bid Validity:** 6 months from the submission deadline.

#### **Evaluation & Scoring Criteria (Total 100 Marks):**

Proposals will be evaluated separately for each parcel based on a detailed scoring matrix. The highest-ranked responsive bidder for each parcel will be selected.

| Evaluation Criteria | Maximum Score | Key Considerations |
| :— | :— | :— |
| **1. Offtake Agreement** | 30 | Binding agreements/LoIs for future sale of green chemicals. Scoring is normalized based on the highest capacity offered. |
| **2. Offtaker Credit Quality** | 10 | Credit rating of the offtaker (e.g., S&P, Moody’s, CRISIL). Higher ratings (e.g., A- or above) get maximum score. |
| **3. Engineering Capability** | 20 | Readiness and partnerships: (a) Tech licensor for chemical loop, (b) Electrolyser OEM commitment, (c) In-house EPC/engineering capability. |
| **4. Past Experience** | 25 | Track record in successfully commissioning similar plants. Higher scores for larger, successfully commissioned projects vs. FEED-stage or pilot projects. |
| **5. Financial Strength** | 15 | Net worth of the bidder/consortium. Scoring is normalized, with the highest net worth getting maximum marks. |

#### **Business & Strategic Implications:**

1. **First-Mover Advantage:** This is a landmark project as India’s first National Green Hydrogen Hub, offering developers a strategic opportunity to establish a foothold in the country’s emerging green fuels market.
2. **”Plug-and-Play” De-risking:** The Hub model significantly de-risks projects for developers by centralizing and pre-arranging complex infrastructure like renewable power, water, and port access. This reduces project execution complexity and timeline.
3. **Integrated Value Chain:** Developers benefit from an integrated ecosystem where critical inputs (RE power, N2, CO2) and outputs (port, storage) are managed, allowing them to focus on core technology and production.
4. **Competitive Selection:** The scoring system heavily favors developers who have already secured **offtake agreements (30 marks)** and have a strong **track record (25 marks)** . This indicates NGEL’s intent to select credible players with ready markets, ensuring the Hub’s success.
5. **Financial Commitments:** The requirement for a Performance Security linked to Minimum Guaranteed Payments ensures that selected developers have a long-term financial commitment to the Hub, securing NGEL’s revenue stream from utilities.

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