Indian Oil Corporation (IOC) has taken a significant step towards clean energy by finalizing the Levelized Cost of Hydrogen (LCOH) for India’s largest green hydrogen generation facility.
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Located at the Panipat Refinery & Petrochemical Complex, the plant is expected to produce 10,000 tonnes of green hydrogen annually. This initiative represents a crucial development in India’s energy transition efforts, positioning Indian Oil at the forefront of sustainable energy projects in the country.
Project Overview
Capacity and Location
The green hydrogen plant will be situated within IOC’s Panipat Refinery Complex in Haryana. The facility is designed to generate 10,000 tonnes of green hydrogen annually, making it the largest of its kind in India. The plant will operate continuously, producing approximately 1,250 kilograms of green hydrogen per hour.
Integration with Existing Infrastructure
The produced green hydrogen will be integrated into the existing hydrogen network of the Panipat Refinery. This integration aims to reduce carbon emissions by replacing grey hydrogen with green hydrogen in refinery operations.
Leadership and Strategic Vision
Chairman’s Statement
Arvinder Singh Sahney, Chairman of IOC, emphasized the company’s commitment to sustainability during the World Economic Forum 2025 in Davos. He stated that the green hydrogen plant is a significant step towards achieving India’s energy transition goals.
Alignment with National Hydrogen Mission
The project aligns with India’s National Hydrogen Mission, which aims to promote the use of hydrogen as a clean energy source. IOC’s initiative supports the country’s broader goals of reducing carbon emissions and transitioning to renewable energy.
Economic and Environmental Impact
Cost Reduction through Policy Support
The Indian government’s new green hydrogen policy, announced on February 17, provides incentives such as open access to renewable energy and zero inter-state transmission charges for 25 years for projects commissioned before June 30, 2025. This policy is expected to reduce the cost of green hydrogen production by 40 to 50%.
Contribution to Decarbonization
By integrating green hydrogen into refinery operations, IOC aims to significantly reduce carbon emissions. This move supports India’s commitment to achieving net-zero emissions and contributes to global efforts against climate change.
Challenges and Tender Process
Tender Revisions and Industry Concerns
IOC’s initial tender for the Panipat green hydrogen plant faced challenges, including accusations of preferential treatment and restrictive eligibility criteria. The company revised the tender to address these concerns, removing clauses that favored specific joint ventures and broadening participation criteria.
Bidding and Contractor Selection
L&T Energy Green Tech secured the tender to construct the green hydrogen production facility at IOC’s Panipat refinery. The plant is designed to generate 10,000 tonnes of green hydrogen annually, marking a major step in IOC’s push towards cleaner energy alternatives.
Future Outlook
Commissioning Timeline
The green hydrogen plant is expected to be commissioned within two years, by 2027. This timeline aligns with IOC’s strategic plan to integrate green hydrogen into its operations and supports India’s broader renewable energy and decarbonization goals.
Expansion and Replication
IOC plans to replicate the success of the Panipat project by establishing additional green hydrogen plants at other refineries, such as Mathura. These initiatives aim to further reduce the company’s carbon footprint and support India’s transition to a sustainable energy future.
© 2025 The Volt Post. All rights reserved.
Indian Oil Corporation’s finalization of India’s largest green hydrogen project at Panipat marks a significant milestone in the country’s journey towards sustainable energy.
