IndianOil's Bold Leap: Betting Big on Green Hydrogen for a Sustainable Future
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- September 19, 2025
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In a world grappling with climate change and the urgent need for sustainable energy, IndianOil, a titan in the traditional fossil fuel sector, is making an audacious pivot. The company’s ambitious foray into green hydrogen, with a substantial Rs 2 lakh crore investment earmarked for the next seven years, isn't just a strategic shift; it's a profound statement about India's energy transition and IndianOil's role in it.
This isn't merely an incremental step.
IndianOil's move involves transforming its existing refineries into green hydrogen production hubs, setting up renewable energy plants for captive consumption, and establishing electrolyser manufacturing facilities. It’s a holistic ecosystem approach, aiming to produce 0.7 million tonnes of green hydrogen annually by 2030.
This scale is nothing short of transformative, positioning IndianOil as a potential leader in India's green hydrogen economy.
Historically, IndianOil's operations have been deeply intertwined with crude oil refining, making this shift particularly challenging yet critical. The company processes over 80 million tonnes of crude annually and is India's largest oil marketer.
Its decision to invest heavily in green hydrogen is a clear acknowledgement of the global push towards decarbonisation and a proactive response to evolving energy demands.
The current cost of green hydrogen remains a significant hurdle. Produced through electrolysis powered by renewable energy, it is currently more expensive than 'grey' hydrogen, which is derived from natural gas.
However, with advancing technology, economies of scale, and supportive government policies, the cost gap is expected to narrow rapidly. IndianOil's large-scale investment could be a major catalyst in accelerating this cost reduction.
Globally, hydrogen is emerging as a critical energy vector for hard-to-abate sectors like heavy industry, long-haul transport, and certain chemical processes.
Unlike fossil fuels, hydrogen produces only water when combusted or used in fuel cells, making green hydrogen a zero-emission solution from production to consumption. India, with its abundant renewable energy potential, is uniquely positioned to become a global leader in green hydrogen production.
IndianOil's strategy isn't solely about production.
It's about creating an entire value chain. The company plans to use green hydrogen in its own refineries to replace fossil-fuel-derived hydrogen, thereby significantly reducing its carbon footprint. Furthermore, it aims to develop new markets for green hydrogen, fostering its adoption across various industrial applications and potentially even for mobility solutions.
This courageous undertaking by IndianOil underscores a broader national commitment.
India has set ambitious targets for renewable energy capacity addition and is actively promoting green hydrogen through policies like the National Green Hydrogen Mission. IndianOil's initiative is a powerful testament to the public sector's willingness to lead the charge in this new energy paradigm.
While the path ahead is undoubtedly complex, fraught with technological, economic, and infrastructural challenges, IndianOil's audacious bet on green hydrogen is a bold, forward-looking move.
It represents a pivot towards sustainability that could redefine not just the company's future, but also contribute significantly to India's energy security, environmental goals, and its aspiration to become a global hub for green energy innovation. It's an investment in a cleaner, greener tomorrow.
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