The global energy transition is increasingly centered on molecules as much as electrons. While renewable electricity is rapidly decarbonizing the power sector, several hard-to-abate industries-including refining, steel, chemicals, fertilizers, aviation, and shipping-require an energy carrier that can provide both process heat and chemical functionality. Among the various pathways being pursued to achieve net-zero emissions, green hydrogen has emerged as one of the most promising solutions.

For the refining industry, green hydrogen represents both an opportunity and a necessity. Global hydrogen demand has now reached nearly 100 million tonnes per annum (MTPA), with more than 95% consumed by refining, ammonia, methanol, and chemical manufacturing sectors. Refineries alone account for approximately 15-20% of global hydrogen consumption, making them one of the largest industrial users of hydrogen. Yet, more than 99% of the hydrogen produced worldwide is still derived from fossil fuels, primarily through steam methane reforming (SMR) and coal gasification, resulting in substantial carbon emissions. The transition from grey hydrogen to green hydrogen therefore represents one of the most impactful opportunities for industrial decarbonization.

Why Refineries Matter in the Hydrogen Economy

Hydrogen is not a new molecule for refineries. A modern refinery may consume tens of thousands of tonnes of hydrogen annually for processing crude oil into cleaner transportation fuels. As fuel specifications become increasingly stringent, hydrogen demand within refineries continues to grow.

The opportunity is particularly significant in India. Indian refineries collectively consume an estimated 2-3 MTPA of hydrogen, primarily generated through fossil-fuel-based routes. Since refineries already possess hydrogen generation, handling, storage, compression, purification, and distribution infrastructure, they offer one of the fastest pathways for industrial-scale adoption of green hydrogen. The transition is therefore not about creating new hydrogen demand but about decarbonizing an existing and strategically important industrial feedstock.

Globally, several refiners are evaluating or implementing green hydrogen projects. Europe has witnessed significant investments in electrolyser-based hydrogen production integrated with refinery operations.

Major energy companies are exploring large-scale projects that combine renewable power generation with hydrogen production to reduce refinery emissions and produce sustainable fuels.

Consequently, refineries are increasingly viewed as anchor consumers for the emerging hydrogen economy.

Green Hydrogen in Indian Refineries

India has set ambitious targets under the National Green Hydrogen Mission, recognizing hydrogen as a strategic pillar for achieving energy independence and net-zero aspirations.

The Mission aims to establish 5 MTPA of green hydrogen production capacity by 2030, supported by investments of nearly Rs.20,000 crore.

Achieving this target will require approximately 250-275 TWh of renewable electricity annually. Considering that production of one kilogram of green hydrogen typically requires 50-55 kWh of electricity, the scale of renewable energy integration needed is unprecedented. This would correspond to approximately 45-60 GW of dedicated renewable energy capacity, depending on capacity factors.

The refining sector is expected to play a pivotal role in this transition. Integrating green hydrogen into refinery operations provides an immediate opportunity to reduce emissions without fundamentally altering downstream process units. Several Indian refiners have announced green hydrogen initiatives, pilot projects, and commercial-scale deployment plans. Among these, HPCL achieved a significant milestone by commissioning a 370 TPA Green Hydrogen Unit at its Visakhapatnam Refinery, becoming the first refinery in India to produce and utilize green hydrogen within refinery operations. Such deployments provide valuable operational experience for future scale-up and commercialization.

Beyond Refineries: Expanding Applications of Green Hydrogen

While refineries represent a natural entry point, green hydrogen’s role extends far beyond refining. The steel industry is evaluating hydrogen-based direct reduced iron (ORI) processes to replace coal-based reduction routes.

Fertilizer manufacturers are exploring green ammonia production, while the aviation and maritime sectors are actively investigating hydrogen-derived sustainable fuels. Long-duration energy storage and hydrogen mobility are also emerging as future growth segments.

However, most of these applications are still evolving from pilot to commercial scale. Refineries therefore remain strategically important because they provide an immediate and established demand base capable of accelerating electrolyser deployment, manufacturing scale-up, and supply chain development.

The Integration Challenge

Despite its promise, integrating green hydrogen into refinery operations is far from a simple substitution exercise.

Green hydrogen production introduces a new layer of complexity because it is intrinsically linked to renewable electricity availability. The scale of the challenge becomes evident when considering energy consumption. Producing one kilogram of green hydrogen requires approximately 50-55 kWh of electricity.

Consequently, a refinery consuming 100 tonnes of hydrogen per day would require nearly 5-5.5 GWh of electricity daily if its entire hydrogen demand were met through electrolysis. Renewable power availability, grid integration, energy storage, and electrolyser efficiency therefore become critical determinants of project viability.

Electrolysers must operate efficiently under varying power conditions while meeting the continuous hydrogen demand of refinery processes. Among available technologies, alkaline electrolysers remain the most mature and commercially proven option due to their relatively low capital cost and established supply chains. However, their operational flexibility at low loads remains limited. Anion Exchange Membrane (AEM) electrolysers are emerging as an attractive alternative owing to their superior dynamic response and ability to operate efficiently over a wider range of power inputs. Future refinery installations may increasingly adopt hybrid configurations combining the economics of alkaline systems with the operational flexibility of AEM technologies.

Replacing Conventional Hydrogen: Opportunities and Constraints

In principle, every kilogram of grey hydrogen currently consumed in refineries can eventually be replaced by green hydrogen. However, practical implementation depends on scale, economics, infrastructure integration, and renewable power availability.

Large refineries may consume several hundred tonnes of hydrogen per day, requiring hundreds of megawatts of electrolyser capacity and substantial renewable energy assets. The economics of green hydrogen remain strongly influenced by electricity costs, electrolyser capital expenditure, plant utilization factors, and system efficiency. In addition, hydrogen purity requirements, compression systems, storage infrastructure, and refinery hydrogen header integration must all be carefully optimized to ensure seamless operation.

Managing intermittency also remains a major challenge. Refineries operate continuously, whereas renewable energy generation varies throughout the day. Addressing this mismatch requires a combination of flexible electrolysers, hydrogen storage, grid connectivity, and advanced energy management systems.

The Role of Research and Innovation

The long-term competitiveness of green hydrogen will depend heavily on advances in electrochemical engineering, materials science, and system integration. Electricity typically accounts for nearly 60-70% of the cost of green hydrogen production, making reductions in specific power consumption a key technology objective.

Advances in catalyst design, membrane materials, electrode architectures, separator technologies, and stack engineering are expected to improve efficiency while enhancing durability and reducing degradation.

Simultaneously, digital diagnostics, predictive maintenance, and intelligent process control systems will further improve reliability and lifecycle economics.

At the heart of this transformation is the HP Green R&D Centre (HPGRDC), Bengaluru, which has emerged as one of the country’s leading innovation hubs for hydrogen technologies, where research activities span the entire hydrogen value chain, including electrolyser development, advanced electrocatalysts, hydrogen storage, mobility applications, and system integration. Since 2020, HPGRDC has pursued a comprehensive green hydrogen roadmap spanning production, utilization, storage, and mobility. The Centre has delivered several first-of-their-kind achievements, including development of Anion Exchange Membrane (AEM) electrolyser technology to megawatt-ready systems.

These efforts are complemented by the establishment of hydrogen mobility infrastructure, including a hydrogen refuelling station near Visakhapatnam, positioning HPCL across the entire hydrogen value chain-from production and dispensing to end-use applications.

The Way Forward

The future of sustainable refining will be closely linked to the successful integration of green hydrogen. As global hydrogen demand approaches 100 MTPA and India advances toward its target of 5 MTPA green hydrogen production by 2030, refineries are uniquely positioned to become anchor consumers of renewable hydrogen.

However, achieving meaningful decarbonization requires more than installing electrolysers. Success will depend on a systems-level approach encompassing renewable energy integration, flexible hydrogen production technologies, advanced storage solutions, digital optimization, and continuous innovation across the hydrogen value chain. Refineries that embrace this transformation early will not only reduce their carbon footprint but also position themselves at the centre of the emerging hydrogen economy. The journey toward sustainable refining has begun, and green hydrogen is poised to become one of its most important enablers.