Indian Oil Corporation (IOC) is considering the establishment of green hydrogen generation units in Tamil Nadu and Kerala, as part of its proposed investments worth ₹54,000 crore. The PSU oil major is in talks with the state governments and is seeking support in terms of land and electricity for the project.
V C Asokan, Executive Director & State Head of Indian Oil Corporation Ltd, mentioned that the company has already discussed the plan with the Tamil Nadu government and is scheduled to meet state officials to further the discussion. IOC has been actively researching green hydrogen, which is considered the fuel of the future. The company has a hydrogen dispensing station at its R&D centre and has already conducted pilots with 15 fuel cell electric buses.
Regarding the cost of the proposed unit in Tamil Nadu, Asokan explained that the investment would depend on the users’ requirements. For example, an investment of around ₹50 crore would meet the needs of approximately 10-12 fuel cell buses.
IOC is also working on establishing a 7 KTPA green hydrogen capacity at its Panipat refinery and has installed a demonstration facility for hydrogen dispensing at its Baroda refinery in Gujarat.
Furthermore, IOC plans to add 300 more EV charging stations in Tamil Nadu during the current fiscal year, bringing the total number of EV stations in the state to 700.
The company has a comprehensive investment plan for Tamil Nadu, including a new grass-roots refinery at Nagapattinam with an investment of ₹35,580 crore. Other projects include a POL terminal at Asanur, a captive POL/LPG jetty at Kamrajar Port, and the construction of an Integrated Lubes Complex at Ammulvoyyal village.
In addition, IOC will invest in product pipelines, gas pipelines (including LPG), CGD projects, and new retail outlets and modernizations.
This move by Indian Oil Corporation to explore green hydrogen generation units aligns with the global focus on decarbonization and the transition to cleaner energy sources. Green hydrogen has the potential to play a significant role in achieving sustainability goals, as it can be produced through renewable sources and used as a clean fuel in various sectors, including transportation and industry.
However, there are challenges associated with green hydrogen production, such as the high cost of electrolysis and the need for significant infrastructure development. Overcoming these challenges will require collaboration between governments, industry players, and research institutions to drive innovation, reduce costs, and create a supportive regulatory framework.
By investing in green hydrogen and expanding its EV charging infrastructure, Indian Oil Corporation is positioning itself as a key player in the energy transition in India. These initiatives have the potential to drive the adoption of clean and sustainable technologies, contribute to the reduction of greenhouse gas emissions, and support the country’s goals of achieving energy security and environmental sustainability.