Indian Oil follows billionaires Ambani, Adani in green hydrogen bet
Indian Oil Corp.
Ltd., the country’s biggest oil refiner and a large user of hydrogen, will
partner with top renewable energy producer ReNew Power and Larsen & Toubro
Ltd. to produce green hydrogen that’s fast gaining momentum in the South Asian
nation’s clean push.
The three companies have signed
a binding term sheet to jointly develop green hydrogen projects, while the
state-run refiner and the engineering major will form a separate partnership
for making electrolyzers for green hydrogen, according to a joint statement
from the three firms. The partnership will focus on green hydrogen projects at
Indian Oil’s Mathura and Panipat refineries in northern India.
Green hydrogen, produced from water and green electricity and
considered the cleanest form of fuel, is a potential path to decarbonize heavy
industries, such as steel, cement and oil refineries. India, the world’s
third-biggest emitter of greenhouse gases, plans to take the lead and has won
support from its richest billionaires, Mukesh Ambani and
Gautam Adani.
India aims to produce 5 million tons of green hydrogen by 2030, when its demand
for hydrogen is estimated at 12 million tons.
India’s refineries consume about two million tons of hydrogen annually,
much of it by the Indian Oil group, which holds a third of the nation’s oil
processing capacity. Indian Oil is already working toward producing 70,000 tons
a year of green hydrogen by 2030, which will account for 10% of its overall
consumption by that time. Refineries typically use hydrogen for the removal of
sulfur from fuels like diesel.
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