Last updated : February 17, 2026 8:12 am
IndianOil’s hydrogen strategy is a phased, indigenous transition that integrates technology readiness, cost-effectiveness, and safety
How does IndianOil’s hydrogen transition plan align with NGHM and India’s broader net-zero or clean-energy commitments?
IndianOil’s hydrogen transition strategy is closely aligned with the National Green Hydrogen Mission (NGHM) and India’s long-term decarbonization and net-zero commitments. The company is advancing green hydrogen production, refuelling infrastructure, hydrogen mobility, and industrial decarbonization in parallel, creating an integrated hydrogen ecosystem.
A key milestone is the establishment of India’s largest green hydrogen plant at Panipat (10 KTPA), which directly supports NGHM objectives of demand creation, cost reduction, and domestic manufacturing. IndianOil is also deploying renewable powered hydrogen refuelling stations, developing indigenous electrolyser technologies (PEM and AEM), and demonstrating hydrogen fuel cell mobility.
Simultaneously, its roadmap prioritizes replacement of grey hydrogen in refining and petrochemical operations, reduction of emissions from hard-to-abate sectors, and enhancement of energy security. Collectively, these initiatives position IndianOil as a key implementing agency translating national hydrogen policy into on-ground outcomes aligned with India’s 2030 NDCs and net zero vision.
Long term strategy and Capex planned by IndianOil to roll out green hydrogen?
IndianOil’s long term strategy follows a phased and market responsive approach. The company is implementing its first large-scale project at Panipat (10,000 TPA) under a Build–Own–Operate (BOO) model, aligned with its broader target by 2030. Since Panipat project is BOO based, no upfront Capex is being incurred by IndianOil, and green hydrogen will be procured at a fixed discovered price over a 25 year term. The operational performance, technology maturity, cost trajectory of renewable power and electrolysers, and policy evolution will guide future capacity expansion and determine whether subsequent projects adopt BOO or conventional Capex led models.
IndianOil is setting up a green hydrogen unit at Panipat Refinery & Petrochemical Complex with a capacity of 10,000 TPA. Current status and expected commissioning date? Targeted output once fully operational?
The contract was awarded in June 2025 at a discovered price of Rs. 397 per Kg (including GST) through open tender for a 25 year term. Green hydrogen purchase agreement and contract agreement between L&T Energy GreenTech and IndianOil have been executed in July 2025. Pilot plan coordinates have been finalized and land lease agreement has been executed between L&T Energy GreenTech and IndianOil in September 2025. Design & Engineering activities at L&T are in progress. Expected completion of the Panipat project is December 2027.
Levelized cost of hydrogen (LCoH) estimated by IndianOil for the Panipat plant and its comparison to current grey-hydrogen costs?
The Panipat project has secured a Levelized Cost of Hydrogen of Rs. 397/kg (inclusive of GST) over a 25-year term, the second lowest discovered price through competitive bidding in India to date. In comparison, grey hydrogen produced from natural gas currently costs approximately Rs. 180-200/kg (excluding GST).
While green hydrogen remains costlier at present, the cost gap is expected to narrow over time due to declining renewable energy tariffs, improvements in electrolyser efficiency, scaling up of domestic electrolyser manufacturing, and supportive policy incentives under NGHM.
Recent public announcement mentions enlistment of a contractor at Panipat under a build-own-operate (BOO) model. Which electrolyser technology will be used and electrolyser supplier?
As I said before, green hydrogen at Panipat will be produced by the BOO contractor, L&T Energy GreenTech, using high-pressure alkaline electrolysers manufactured by L&T Electrolysers Ltd. at its state-of-the-art facility in Hazira, Gujarat.
Which refinery processes or Petrochemical units will the green hydrogen feed? Will it fully substitute grey hydrogen or only partially?
The first 10,000 TPA green hydrogen plant at Panipat will partially substitute grey hydrogen, meeting around 10% of the refinery’s total hydrogen demand. Full substitution will be achieved progressively through phased capacity additions.
Does the company also have plans on hydrogen fuel mobility and initial pilot geographies or partnerships?
Yes, IndianOil is actively advancing hydrogen mobility pilots in collaboration with leading OEMs and government agencies. This includes India’s first hydrogen fuel cell bus demonstration with Tata Motors with partial funding from Centre for High Technology (CHT), Ministry of Petroleum and Natural Gas, Government of India.
This exercise targets to collectively complete over 3,00,000 kilometers across Delhi–NCR, Vadodara, and defence deployments.
Under NGHM, IndianOil, and Tata Motors proposed to join the development of hydrogen refueling stations (HRS) for hydrogen mobility trials. As part of this initiative, sixteen hydrogen-powered vehicles to be developed by Tata Motors shall undergo trials across four highways. To support this, IndianOil will develop two new hydrogen refueling stations along the Mumbai-Pune corridor and the Jamshedpur-Balasore corridor.
Additionally, existing hydrogen refueling stations at Faridabad and Gujarat will be used for operations along the Delhi-Sahibabad corridor and the Ahmedabad-Surat corridor. These pilots aim to establish operational readiness for national-scale deployment.
Will you be deploying green hydrogen fuel dispensing pumps beyond internal refinery use? What is the planned scale and timeline for roll out?
Yes, IndianOil’s strategy includes public hydrogen dispensing infrastructure. The company has already commissioned India’s first green hydrogen refuelling station at its R&D Centre at Faridabad and followed at Vadodara, Gujarat.
IndianOil will develop two new hydrogen refueling stations along the Mumbai-Pune corridor and the Jamshedpur-Balasore corridor. In the initial phase, stations will be deployed along pilot corridors including Delhi–NCR, Ahmedabad-Surat, Mumbai–Pune, and Jamshedpur–Kalinganagar.
Between 2028 and 2030, IndianOil plans to scale this into a nationwide network integrated with refinery-based hydrogen production hubs. These efforts are complemented by partnerships with Tata Motors, Hyundai, and the Indian Army, and Indian Navy to accelerate adoption of hydrogen fuel cell and hydrogen internal combustion engine (H2ICE) vehicles.
How is IndianOil planning to build supply-chain infrastructure for hydrogen fuel (storage, compression/transport, safety, and logistics)?
IndianOil is adopting a phased supply chain development approach, beginning with large scale production at Panipat and controlled deployment at refineries. Pilot hydrogen dispensing stations at its R&D Centre and Gujarat Refinery are being used to establish best practices in compression, storage, dispensing, logistics, and safety.
As deployment expands, IndianOil will leverage its extensive fuel distribution network while ensuring strict compliance with PESO regulations and global hydrogen safety standards.
Major technical or operational risks envisaged in switching from grey to green hydrogen in terms of power supply, water availability, electrolyser efficiency, storage, and safety?
Key risks include intermittency of renewable power, which can affect electrolyser utilization; water availability, as electrolysis requires around 9 litres of demineralized water per kg of hydrogen; electrolyser efficiency and degradation over time; and challenges related to storage, compression, and material embrittlement.
Safety is a critical consideration due to hydrogen’s flammability, necessitating advanced leak detection, emergency response systems, and stringent regulatory compliance. These risks are being mitigated through pilot projects, phased scaling, and robust safety frameworks.
IndianOil’s long-term target for hydrogen production capacity? Hydrogen share in total fuel/energy mix and renewable energy portfolio size?
To achieve its net-zero target by 2046, IndianOil plans a progressive transition to full substitution of grey hydrogen across refineries, supported by large-scale renewable energy integration and advancements in electrolyser technology. Capacity expansion will be phased and market driven, aligned with cost reductions and policy evolution.
IndianOil is also exploring green-fuel or alternate-energy initiatives like CBG, SAF, and biofuels in parallel to hydrogen? How will these complement the hydrogen roadmap?
IndianOil is pursuing a diversified clean-energy portfolio. Under SATAT, it is investing around Rs. 1,200 crore in CBG plants through joint ventures with EverEnviro and GPS Renewables.
In SAF, IndianOil has achieved ISCC-CORSIA certification and is planning a 30,000 TPA SAF plant at Panipat, targeting 1–2% blending by FY 2027–28.
Biofuel initiatives include 2G ethanol, biodiesel, bio-bitumen, and indigenous SAF trials. These fuels complement hydrogen by addressing multiple sectors and accelerating emissions reduction.
Does IndianOil foresee hydrogen becoming a significant revenue/business unit (beyond just replacing grey hydrogen) e.g. in hydrogen retail, exports, mobility, chemicals, or allied sectors?
Yes, beyond replacing grey hydrogen, IndianOil envisions hydrogen as a commercial business vertical, encompassing hydrogen retail, mobility, infrastructure services, and allied sectors.
Public refuelling networks, corridor based deployments, and in partnerships with Tata Motors, Hyundai, and Indian Army will support the gradual scale up towards commercial hydrogen mobility and fuel markets. As far as hydrogen mobility is concerned, Japan and China are leading globally.
Toyota Mirai launched in Japan provides a mileage of 150 km/kg of hydrogen. China is ramping up its efforts towards augmentation of hydrogen refuelling stations.
In India, IndianOil is undertaking demonstration trials on 15 buses with the arrangement of refueling from two of its locations – one at Faridabad and other at Vadodara. Widespread hydrogen use in India will depend on cost effective hydrogen transport and storage solutions.
Anything you would like to add from your side
IndianOil’s hydrogen strategy represents a systemic, phased, and indigenous transition that balances technology readiness, cost competitiveness, safety, and policy alignment. By integrating green hydrogen with refining, mobility, renewables, and alternative fuels, IndianOil is positioning itself as a central pillar of India’s clean energy and net-zero journey.