- Indian Oil is building India’s largest green hydrogen plant at Panipat, targeting 10,000 tons/year by 2027.
- Despite rising oil demand, India aims to produce 5 million tons of green hydrogen annually by 2030 under its National Green Hydrogen Mission.
India is ramping up its renewable energy efforts even as it leads global oil demand growth as the world’s third-largest crude importer. In a significant move towards decarbonisation, Indian Oil Corporation, the country’s top refiner, finalised plans to replace fossil fuel-derived hydrogen with green hydrogen at its Panipat Refinery & Petrochemical Complex.
The state-run energy giant has selected Larsen & Toubro (L&T) to build and operate the new plant. Once it is commissioned in late 2027, it will become India’s largest green hydrogen production facility. The plant should produce 10,000 tons of green hydrogen annually using electrolysis powered by renewable energy.
L&T is no stranger to green hydrogen infrastructure. Earlier this year, it commissioned its first India electrolyser at the Green Hydrogen Plant at the A M Naik Heavy Engineering Complex in Hazira, Gujarat. The company will bring that expertise to Indian Oil’s flag decarbonisation project.
The green hydrogen produced at Panipat will replace the hydrogen currently used in refining operations, significantly reducing the refinery’s carbon footprint. India emphasised that the project aligns with India’s National Green Hydrogen Mission, which aims to establish India as a global hub for producing, using, and exporting green hydrogen and its derivatives.
According to the Ministry of New and Renewable Energy, the mission will drive decarbonisation, cut fossil fuel imports, and help India gain technological and market leadership in the green hydrogen sector. As part of this broader strategy, the government launched five pilot projects to use green hydrogen in buses and trucks in March, targeting hard-to-abate sectors like steelmaking, shipping, and heavy mobility.
India has set ambitious goals, including producing 5 million metric tons of green hydrogen annually by 2030, installing 60 GW–100 electrolyser capacity, and adding 125 GW of renewable energy to hydrogen production.
These initiatives aim to reduce emissions, cut energy import bills, and attract global investment, said New and Renewable Energy Minister Pralhad Joshi.
A recent report by Rocky Mountain Institute (RMI) noted that India could become a clean energy powerhouse if it accelerates investment in renewables. India accounts for just 4% of global clean energy investment despite strong growth potential. The report suggests that with the right financing, India’s transition could save more emissions by mid-century than Europe and North America combined, setting a path for other emerging economies.
However, challenges remain. A separate analysis by Ember, a clean energy think tank, warned that India is investing only one-fifth of what’s needed annually to meet its 2030 clean energy goals. Without a significant boost in funding, India risks missing its ambitious targets.
Meanwhile, India’s oil demand continues to grow. The country is overtaking China as the most significant global oil demand growth driver, marking a historic shift in energy markets. While India’s growth rate now surpasses China’s, its total consumption volume remains well below China’s peak in the early 2000s and is unlikely to reach those levels.