WORLD HYDROGEN: Indian Oil to expand renewable hydrogen footprint in energy diversification

Renewable hydrogen is expected to be a key component in Indian Oil Corp.'s new energy portfolio, as the state-run refiner aims to significantly expand its production capacity in alignment with the government's vision to establish India as a global marketplace for hydrogen, according to Chairman Arvinder Singh Sahney.

As India aims for 500 GW of non-fossil fuel capacity by 2030 and embraces biofuels and renewables, low-carbon fuels are expected to experience rapid growth during this period, while fossil fuels continue to play a crucial role in ensuring supply stability throughout the transition, he told Platts, part of S&P Global Energy, ahead of the World Hydrogen India conference Sept. 25-26.

"IOC envisions playing a pivotal role in India's journey toward energy security, self-reliance, and decarbonization," Sahney said.

"Targeting net-zero emissions by 2046, the company also aims to raise its contribution to the energy sector from about 9% to 12.5% by 2050. Its strategy combines strengthening core refining and petrochemical capacities, rapid diversification into natural gas and renewables, and scaling next-generation fuels."

Decarbonizing refinery operations is a core priority for IOC, according to Sahney. Emissions mitigation will be achieved through energy efficiency upgrades, transitioning from liquid fuels to natural gas, integrating renewable energy sources and compressed biogas, increasing grid power usage and adopting renewable hydrogen, he said.

"We are advancing India's green hydrogen ecosystem with the upcoming 10,000 metric tons per year renewable hydrogen plant at Panipat," Sahney said. "We further plan to increase green hydrogen capacity to 350,000 mt/y by 2030. We are actively supporting India's National Green Hydrogen Mission through pilot projects and infrastructure investments."

According to S&P Global Energy Hydrogen Production Assets database, IOC has renewable hydrogen projects in Gujarat, Uttar Pradesh and Kerala in addition to the one at the Panipat refinery, with a projected output of about 28,365 mt/y.

Early mover

IOC has been an early adopter of renewable hydrogen, taking a leading role among refineries by initiating multiple clean energy projects, while maintaining a balanced approach alongside its conventional fuel operations.

In May, IOC awarded its first 10,000 mt/y renewable hydrogen plant project to L&T Energy Green Tech, to be established at its Panipat refinery in Haryana.

The plant will follow a build-own-operate model, with the developer supplying renewable hydrogen to the refinery for 25 years at the winning bid of Rupees 397/kg (about $4.65/kg).

IOC's competitive auction stood out for its low pricing, which industry experts believe could set a precedent for lower costs for environmentally friendly hydrogen in India.

Indian refiners may award renewable hydrogen projects at prices below $3/kg, reflecting the downward trend seen in recent tender results, Ministry of Petroleum and Natural Gas Secretary Pankaj Jain has said.

Platts, part of Energy, assessed Oman hydrogen produced via alkaline electrolysis, including capital expenditures, at $4.96/kg on Sept. 23, unchanged from a month earlier. Platts assessed Japan hydrogen produced via alkaline electrolysis, including capex, at $4.16/kg, down 28.3% from a month ago.

Spreading wings

To align with evolving customer mobility preferences, IOC is transforming its retail outlets into energy stations that offer a range of fuel options -- including conventional fuels, LNG, CNG and electric vehicle charging stations -- along national highways and green expressways.

"Through partnerships with industry leaders like NTPC, SJVN and LanzaJet, we are promoting renewable energy, biofuels, green hydrogen and e-mobility solutions, including battery swapping and sustainable aviation fuel production," Sahney said.

On Aug. 11, IOC announced that its Panipat refinery became the first in India to be certified for producing SAF through the co-processing of used cooking oil as feedstock.

IOC, through its subsidiary Terra Clean Ltd., aims to achieve 31 GW of renewables, 4 million mt of biofuels and 1 million mt of biogas by 2030, with plans to further scale these targets to 200 GW of renewables, 7 million mt of biofuels and 9 million mt of biogas by 2050, according to Sahney.

IOC has also entered into non-binding agreements with Rajasthan Rajya Vidyut Utpadan Nigam Ltd., Solar Energy Corp. of India Ltd. and GRIDCO to establish strategic partnerships in the new energy space.

"Bioenergy leadership is reinforced by India's first 2G and the world's first 3G ethanol plants, record 19.1% ethanol blending in the year 2024-25, and nationwide E20 rollout," Sahney said.

IOC currently operates over 13,600 EV charging stations and, through its JV Indofast Swap Energy, runs 865 battery-swapping stations, with a target to add 1,800 more in fiscal year 2025-26 (April-March).