**Indian Oil’s Green Hydrogen Strategy: Aiming for Mobility and Sustainability**
Indian Oil is set to transform its hydrogen production strategy by replacing grey hydrogen with green hydrogen at its refineries, while also addressing the growing mobility demand in India through the retailing of green hydrogen fuel cells. Sahney emphasized the importance of enhanced safety standards for green hydrogen stations, which will necessitate dedicated infrastructure from oil marketing companies (OMCs) for retail sales.
This initiative is part of Indian Oil’s ambitious $30 billion investment plan aimed at achieving net-zero emissions by 2046. The strategy involves first meeting the company’s internal hydrogen needs, followed by addressing mobility requirements and exploring export opportunities. The plan, developed by the strategy group of India’s largest refiner, includes establishing carbon emission-free fuel dispensing stations at new locations rather than at existing sites.
Green hydrogen serves as a clean fuel alternative for vehicles, particularly in fuel cell electric vehicles, offering a zero-emission solution compared to fossil fuels. While specific details of the retail plans remain undisclosed, Sahney stated, “Everything is on our strategy table.” The company plans to sell green hydrogen generated from its upcoming 10,000 tonne per annum facility at the Panipat refinery, expected to be operational by December next year.
Sahney highlighted the significance of the Panipat plant, stating, “I want to take it to its logical conclusion, that is increased use in mobility. Until mobility is established, I can also utilize it in my refineries by replacing grey hydrogen with green.” This facility is projected to be the largest green hydrogen plant in India.
Recently, Indian Oil reported a levelized cost of green hydrogen at $4.66 per kg for the proposed plant, marking a significant milestone as the government aims to reduce green hydrogen prices below $5 per kg, with a long-term goal of reaching $1 per kg. This development is crucial as India targets an annual production of 5 million tonnes of green hydrogen by 2030.
Sahney noted that the technology for utilizing green hydrogen in vehicles is already available, with Indian Oil supplying hydrogen to approximately 15 fuel cell buses in the national capital. However, he stressed the urgent need for dedicated dispensing stations to support the emerging fuel market, stating, “We don’t have enough dispensing stations in India. Currently, there are only three or four, two of which are operated by us—one in Gujarat and another in Faridabad. With such limited infrastructure, a proper automobile ecosystem cannot be established.”
In conclusion, Indian Oil’s commitment to green hydrogen not only aligns with global sustainability goals but also positions the company as a leader in the transition to cleaner energy solutions in the mobility sector.
**FAQ**
**What is Indian Oil’s plan for green hydrogen?**
Indian Oil plans to replace grey hydrogen with green hydrogen at its refineries and establish dedicated dispensing stations to cater to the mobility market, aiming for significant production by 2030.