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Indian Oil Corporation (IOC) Betting Big on Green Hydrogen at India Energy Week 2023

28 Feb 2023

Indian Oil Corporation (IOC) is betting big on green hydrogen as it works to achieve net zero operational emissions by 2046. Speaking at the India Energy Week (IEW) 2023, Sukla Mistry, Director, Refineries, IOC, who heads the company’s green hydrogen initiative, said that setting up manufacturing capacities for the latter is a challenge given the limited availability of electrolysers.

Sukla Mistry said that there were not many vendors who produced electrolysers, which are required for producing green hydrogen. “Green hydrogen requires green power and electrolysers. Globally, there are not many companies that produce electrolysers, and most of them are interested in supplying to Saudi Arabia, which has very big plans for green hydrogen,” she added. 

However, IOC Chairman Shrikant Madhav Vaidya is confident that the company’s green hydrogen initiatives will accelerate the replacement of grey hydrogen with green and help achieve the ‘1-1-1 goal’. Green hydrogen 1-1-1 refers to the aim of reducing the price of 1 kilogram of green hydrogen to $1 in 1 decade. 

To achieve the country’s net zero targets by 2070, the Indian government has launched the National Green Hydrogen Mission with an initial outlay of Rs 19,744 crore. The government has earmarked Rs 17,490 crore (88.6 percent) to incentivise the production of green hydrogen and electrolysers, and Rs 400 crore for R&D. 

Sukla Mistry also pointed out other challenges regarding the production of green hydrogen, including the need for distilled water and large requirement of installed capacity of renewable energy. However, IOC is optimistic about the future of green hydrogen in India. 

The company has formed joint ventures (JV) with companies such as the National Thermal Power Corporation (NTPC), Larsen & Toubro (L&T), and ReNew for its energy transition plan. Last year, NTPC and IOC formed a JV to meet the power requirements of upcoming IOC projects. Indian Oil said the JV will help meet the additional power requirement of its refineries using round-the-clock renewable energy to the tune of 650 MW by December 2024. 

Another JV was formed last year between IOC, engineering major L&T, and clean energy company ReNew to develop the nascent green hydrogen sector. These JVs are expected to play a crucial role in accelerating the production and adoption of green hydrogen in India. 

In his address at the IEW 2023, Shrikant Madhav Vaidya said that IOC is committed to investing in new energy sources and technologies to reduce its carbon footprint. “The world is rapidly changing, and so is the energy sector. We need to adapt to these changes by embracing new energy sources and technologies. We are committed to reducing our carbon footprint by investing in new and cleaner energy sources such as green hydrogen,” he said. 

The future of energy is undoubtedly green, and green hydrogen is set to play a key role in India’s transition to a sustainable energy future. With the National Green Hydrogen Mission and initiatives by companies like IOC, India is on track to becoming a global leader in the green hydrogen space.

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