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Indian Oil Corporation to Set up Green Hydrogen Plants at All Refineries in its Rs 2-lakh crore Green Transition Plan

27 Feb 2023

New Delhi, India - Shrikant Madhav Vaidya, the chairman of Indian Oil Corporation (IOC), has announced that the company will set up green hydrogen plants at all its refineries as part of its Rs 2-lakh crore green transition plan. This plan aims to achieve net-zero emissions from its operations by 2046. Vaidya emphasized that the company is preparing for the future transition, which will involve a combination of green hydrogen, biofuels, EVs, and alternate fuels.

Hydrogen, also known as the cleanest fuel, is being touted as the fuel of the future. IOC plans to use electricity generated from renewable sources such as solar to split water and produce green hydrogen. This will help lower the sulfur content of diesel fuel and reduce greenhouse gas emissions from its refining operations. 

IOC plans to set up a 7,000 tonnes per annum green hydrogen producing facility at its Panipat oil refinery at a cost of Rs 2,000 crore by 2025. This is part of the company's target of achieving net-zero emissions from operations by 2046. The company plans to invest over Rs 2 lakh crore to achieve this target, which will cover setting up green hydrogen facilities at refineries, improving efficiency, renewable energy capacity addition, and alternate fuels. 

Vaidya said that IOC is also looking at carbon offsetting through ecosystem restoration and Carbon Capture Utilisation and Storage (CCUS), among others. The company plans to achieve two-thirds of emission reduction through energy efficiency, electrification, and fuel replacement efforts, while about a third of the total emission would be mitigated through options such as CCUS, nature-based solutions, and purchase of carbon credits. 

IOC is also looking to raise renewable energy capacity to 12 gigawatts from the current 256 MW. In addition, the company aims to have electric vehicle charging facilities at 10,000 fuel stations in two years. 

Vaidya emphasized that oil will continue to be a mainstay fuel for the next few years, but the company is preparing for a transition to a future fuel that involves a combination of green hydrogen, biofuels, EVs, and alternate fuels. He plans for green hydrogen to account for 50 per cent of its overall hydrogen output in 5-10 years and 100 per cent by 2040. IOC is also increasing its petrochemical intensity to hedge volatility in the fuel business. 

With its green transition plan, IOC is leading the way in India's shift towards a cleaner and sustainable energy future. Vaidya's vision for IOC is clear: to make the company future-ready and a key player in the transition to the cleanest fuel, fuel of the future, and a sustainable energy future.

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