India’s top oil firm IOC will set up green hydrogen plants at all its refineries as it pivots a Rs 2-lakh crore (trillion) green transition plan to achieve net-zero emissions from its operations by 2046, its chairman Shrikant Madhav Vaidya said.

Indian Oil Corporation (IOC) is remodelling business with an increased focus on petrochemicals to hedge volatility in the fuel business, while at the same time turning petrol pumps into energy outlets that offer EV charging points and battery swapping options besides conventional fuels as it looks to make itself future-ready, he said.

The company intends to expand its refining capacity to 106.7 million tonnes per annum from 81.2 million tonnes as it sees India’s oil demand climbing from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040.

“Oil will continue to be a mainstay fuel for the next few years but we are preparing for transition which will involve a combination of green hydrogen, biofuels, EVs and alternate fuels,” he said.

Hydrogen — the cleanest known fuel that discharges only oxygen and water when burnt — is being touted as the fuel of the future, but its relatively higher cost then alternate fuel currently limit its usage in industries. Refineries, which turn crude oil into fuel such as petrol and diesel, use hydrogen to lower the sulfur content of diesel fuel.

This hydrogen is currently produced using fossil fuels such as natural gas. IOC plans to use electricity generated from renewable sources such as solar to split water to produce green hydrogen.

Vaidya said the company will 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. “We are starting with Panipat but eventually all refineries will have green hydrogen units,” he said.

This is part of the company’s target of achieving net-zero emissions from operations by 2046.

“We plan to invest over Rs 2 lakh crore to achieve net-zero,” he said.

These investments cover setting up green hydrogen facilities at refineries, improving efficiency, renewable energy capacity addition and alternate fuels.

Currently, IOC’s greenhouse gas (GHG) emission, emanating majorly from the company’s refining operations, is 21.5 million tonnes of carbon dioxide equivalent (MMTCO2e) per annum. This will rise to 40.44 MMTCO2e by 2030 after considering the expansions planned and taking the emissions of its subsidiaries into account.

The company plans to use natural gas in refineries in place of liquid fuels as well as replace grey hydrogen (produced from fossil fuel) with green one that is manufactured from renewable power.

PSU giant to recast operations

■ Invest Rs 2 trillion in green facilities

■ Focus on petrochemicals

■ Petrol pumps to offer EV charging

■ Green hydrogen plants at all refineries

■ First plant at Panipat

■ Company to also expand refining capacity