IOC to set up green hydrogen plants at all refineries
POWER & RENEWABLE ENERGY

IOC to set up green hydrogen plants at all refineries

IOC, India's largest oil company, will install green hydrogen plants at all of its refineries as part of a Rs 2 trillion green transition strategy to attain net-zero emissions from its operations by 2046, according to its chairman Shrikant Madhav Vaidya.

Indian Oil Corporation (IOC) is restructuring its business with a greater emphasis on petrochemicals to hedge fuel volatility, while also transforming petrol pumps into energy outlets that offer EV charging points and battery swapping options in addition to conventional fuels as it seeks to become future-ready, he said.

The company plans to increase its refining capacity from 81.2 million tonnes to 106.7 million tonnes per year as India's oil consumption rises from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040.

Hydrogen, the cleanest known fuel that emits just oxygen and water when burned, is being hailed as the fuel of the future, but its higher cost than alternative fuels currently limits its use in businesses. Refineries that convert crude oil into fuels like gasoline and diesel use hydrogen to reduce the sulphur content in diesel fuel.

Nowadays, this hydrogen is created utilising fossil fuels such as natural gas. IOC intends to split water using electricity generated from renewable sources such as solar to produce green hydrogen. Vaidya stated that the corporation will invest Rs 20 billion to build a 7,000 tonne per year green hydrogen production facility at its Panipat oil refinery by 2025.

"We're starting with Panipat, but all refineries will eventually have green hydrogen units," he said. This contributes to the company's goal of reaching net-zero emissions from operations by 2046. "We intend to invest more than Rs 2 trillion in order to attain net zero," he said.

These investments encompass setting up green hydrogen facilities at refineries, enhancing efficiency, renewable energy capacity addition and alternate fuels. IOC's current annual greenhouse gas (GHG) emissions, primarily from refining operations, are 21.5 million tonne carbon dioxide equivalent (MMTCO2e). After accounting for planned expansions and the emissions of its subsidiaries, this figure will climb to 40.44 MMTCO2e by 2030.

96% of its current emissions are due to processes such as direct fuel burning for obtaining energy from heat, steam, electricity, and cooling, which are part of operations. These are the Scope-1 emissions. The remaining 4 per cent is due to obtaining electricity from the grid, which results in Scope-2 emissions.

According to Vaidya, IOC has developed a path to reach net zero Scope 1 and 2 emissions, which include emissions from its crude refining operations and energy usage. Green hydrogen is expected to account for 50% of total hydrogen output in 5-10 years, and 100% by 2040. Vaidya further stated that IOC intends to increase renewable energy capacity to 12 gigatonnes (MW) from the existing 256 MW and to have electric vehicle charging stations at 10,000 petrol stations within two years.

Also Read
Gujarat: period for filing applications extended
Noida to digitize 13lakh land records from 2002-17

IOC, India's largest oil company, will install green hydrogen plants at all of its refineries as part of a Rs 2 trillion green transition strategy to attain net-zero emissions from its operations by 2046, according to its chairman Shrikant Madhav Vaidya. Indian Oil Corporation (IOC) is restructuring its business with a greater emphasis on petrochemicals to hedge fuel volatility, while also transforming petrol pumps into energy outlets that offer EV charging points and battery swapping options in addition to conventional fuels as it seeks to become future-ready, he said. The company plans to increase its refining capacity from 81.2 million tonnes to 106.7 million tonnes per year as India's oil consumption rises from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040. Hydrogen, the cleanest known fuel that emits just oxygen and water when burned, is being hailed as the fuel of the future, but its higher cost than alternative fuels currently limits its use in businesses. Refineries that convert crude oil into fuels like gasoline and diesel use hydrogen to reduce the sulphur content in diesel fuel. Nowadays, this hydrogen is created utilising fossil fuels such as natural gas. IOC intends to split water using electricity generated from renewable sources such as solar to produce green hydrogen. Vaidya stated that the corporation will invest Rs 20 billion to build a 7,000 tonne per year green hydrogen production facility at its Panipat oil refinery by 2025. We're starting with Panipat, but all refineries will eventually have green hydrogen units, he said. This contributes to the company's goal of reaching net-zero emissions from operations by 2046. We intend to invest more than Rs 2 trillion in order to attain net zero, he said. These investments encompass setting up green hydrogen facilities at refineries, enhancing efficiency, renewable energy capacity addition and alternate fuels. IOC's current annual greenhouse gas (GHG) emissions, primarily from refining operations, are 21.5 million tonne carbon dioxide equivalent (MMTCO2e). After accounting for planned expansions and the emissions of its subsidiaries, this figure will climb to 40.44 MMTCO2e by 2030. 96% of its current emissions are due to processes such as direct fuel burning for obtaining energy from heat, steam, electricity, and cooling, which are part of operations. These are the Scope-1 emissions. The remaining 4 per cent is due to obtaining electricity from the grid, which results in Scope-2 emissions. According to Vaidya, IOC has developed a path to reach net zero Scope 1 and 2 emissions, which include emissions from its crude refining operations and energy usage. Green hydrogen is expected to account for 50% of total hydrogen output in 5-10 years, and 100% by 2040. Vaidya further stated that IOC intends to increase renewable energy capacity to 12 gigatonnes (MW) from the existing 256 MW and to have electric vehicle charging stations at 10,000 petrol stations within two years. Also Read Gujarat: period for filing applications extended Noida to digitize 13lakh land records from 2002-17

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?