India refineries to invest $23bn in green hydrogen build-out

Indian refineries are set to invest ₹2 trillion ($23bn) in green hydrogen projects over the next few years, according to the Independent Commodity Intelligence Services (ICIS), marking one of the world’s most ambitious national pushes for hydrogen decarbonisation.

The plans include tenders for 42,000 tonnes per year of green hydrogen production across domestic oil refineries, recently confirmed by India’s Minister for Petroleum and Natural Gas, Hardeep Singh Puri.

“These tenders have been floated by the refineries while 128 more will be issued by state-owned refineries based on the outcome of those tenders,” he said on social media platform X.

To date, four green hydrogen pilot or demonstration plants have been commissioned by Indian Oil Corp (IOC), GAIL India, Hindustan Petroleum and Bharat Petroleum, with a further nine under construction.

IOC is developing a 10,000 tonne per year green hydrogen plant at its Panipat Refinery Complex, due to begin operations in 2027. Once complete, it will be the country’s largest green hydrogen facility and will displace grey hydrogen currently used in refining operations.

India’s oil refineries are among the country’s largest consumers of hydrogen, using it for hydrocracking, desulphurisation and other key processes. Annual hydrogen demand in the sector is estimated to exceed two million tonnes.

Green ammonia ambitions

Green ammonia is also emerging as a strategic export and decarbonisation vector for India. In the eastern state of Odisha, Hygenco Green Energies is planning a $470m, 1.1 million tonne per year green ammonia plant. UAE-based Ocior Energy is developing a separate project at Gopalpur industrial park targeting one million tonnes per year of combined green hydrogen and ammonia.

That facility will be developed in two phases: 200,000 tonnes in the first and 800,000 tonnes in the second. Norwegian firm Aker Solutions has been brought on to conduct front-end engineering design.

“If we are able to determine [offtake], then we could potentially start construction of the project by August–September,” said Ranjit Gupta, CEO of Ocior Energy, earlier this year.

Hydrogen on the roads

India’s National Green Hydrogen Mission (NGHM) also includes a transport focus, aiming to reduce road emissions, currently responsible for 12–14% of national CO2 output.

The government plans to launch five pilot projects for hydrogen-powered trucks and buses by 2027. Backed by companies including Tata Motors, Ashok Leyland, Reliance Industries and several state-run firms, these projects have begun laying groundwork with nine hydrogen refuelling stations mapped across ten national freight corridors.

Earlier this week, NGHM Mission Director Abhay Bakre revealed that up to 50 hydrogen-powered vehicles will be on the roads this year.

“I hope by 2030, more than 1,000 trucks or buses will be plying and used commercially in the country. That is what we are expecting,” he said at a public event.