IndianOil Corporation has finalised plans to establish the country’s largest green hydrogen production facility at its Panipat Refinery and Petrochemical Complex. Announced on 30 May 2025, the project is set to become a cornerstone of India’s decarbonisation roadmap, with operations expected to commence by December 2027.
The state-run energy major confirmed its strategic decision in a filing with the National Stock Exchange, setting the Levelised Cost of Hydrogen (LCOH) for a 10,000-tonnes-per-annum green hydrogen unit. LCOH, a standard metric in global hydrogen economics, reflects the cost at which hydrogen must be sold over the lifecycle of the plant to break even—a clear signal of IndianOil’s long-term commitment and commercial clarity in a sector still seen as emerging globally.
At a time when energy security and environmental sustainability are becoming increasingly intertwined, IndianOil’s ambitious venture underlines both urgency and vision. This project at Panipat is not only a technological and industrial milestone but also a statement of intent: to shift away from fossil-derived hydrogen and integrate low-carbon fuels into the heart of refinery operations. The move is expected to sharply reduce emissions, helping the company edge closer to its net-zero target.This development also aligns with the Prime Minister’s broader hydrogen mission, which aims to position India as a global hub for green hydrogen production and export. With several private sector players, including the Adani Group, already announcing multi-billion-dollar investment plans in the hydrogen sector, IndianOil’s foray ensures that public sector undertakings (PSUs) retain their pioneering edge in the energy transition.
However, the sector’s rapidly evolving landscape raises significant questions about the balance between public and private interests. While India’s mixed economy has historically benefited from PSU-led infrastructure, recent policy directions hint at deeper strategic repurposing of PSU assets, sometimes to the perceived advantage of private monopolies. Critics argue that PSUs continue to bear the brunt of regulation and policy burdens, while private firms leverage market liberalisation more freely—often with less accountability.In petroleum product marketing, for instance, PSUs have reportedly ceded considerable ground to private players, losing out on early-mover advantages despite possessing wider infrastructure and deeper market reach. If similar trends repeat in green hydrogen, there are concerns that the broader public interest—particularly in terms of affordability and equity—could be compromised.
Nevertheless, IndianOil’s Panipat initiative signals a new era of industrial decarbonisation in India. By deploying state-of-the-art electrolysis technology and replacing grey hydrogen with green alternatives at scale, the project is set to become a national benchmark. The refinery’s transformation will likely boost local employment, reduce carbon intensity, and encourage industrial ecosystems to cluster around clean fuel hubs.
As the world’s third-largest energy consumer, India’s growing appetite must be met with sustainable solutions. The Panipat hydrogen plant represents more than just a corporate milestone—it is a national necessity. While private sector participation remains crucial, the leadership and resilience of Indian PSUs like IndianOil will be vital in steering India towards energy independence and climate resilience.
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