The Centre has awarded a total green hydrogen production capacity of 30 Kilo Tonnes Per Annum (KTPA) to four oil refineries under the National Green Hydrogen Mission (NGHM), as part of efforts to accelerate the adoption of clean hydrogen in the petroleum refining sector. The capacity has been awarded under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Mode-2B scheme of the mission. Indian Oil Corporation Limited's Panipat refinery has been awarded 10 KTPA of green hydrogen production capacity, while Bharat Petroleum Corporation Limited's Bina refinery and Hindustan Petroleum Corporation Limited's Vizag refinery have been allocated 5 KTPA each. Numaligarh Refineries Limited's Numaligarh refinery has been awarded another 10 KTPA, taking the combined capacity allocated to the four refineries to 30 KTPA.
The projects will be implemented through Build Own Operate (BOO) arrangements by private developers. The project-specific investments will also be undertaken by the developers concerned, according to information provided by the government. Under the arrangement, green hydrogen produced at the facilities will help refineries reduce their reliance on conventionally produced hydrogen, which is generally derived from fossil fuels and results in significant carbon emissions. The initiative is aimed at promoting the use of green hydrogen in petroleum refining, one of the energy-intensive sectors where cleaner hydrogen can contribute to reducing emissions.
The government said domestic production and utilisation of green hydrogen is expected to reduce India's dependence on imported fossil fuels, strengthen energy security and support the country's transition towards cleaner sources of energy. The move is also expected to contribute to India's broader net-zero objectives by facilitating the adoption of low-carbon technologies in industries where emissions can be difficult to eliminate. Green hydrogen is produced using renewable energy, typically by splitting water through electrolysis, and is regarded as an important clean-energy option for sectors such as refining, fertilisers, steel and heavy transport.
The National Green Hydrogen Mission seeks to establish India as a global hub for the production, use and export of green hydrogen and its derivatives. The SIGHT programme is a key component of the mission and provides incentives aimed at supporting domestic electrolyser manufacturing as well as green hydrogen production. The latest refinery allocations form part of the government's efforts to create industrial demand for green hydrogen while developing a domestic production ecosystem. Details of the 30 KTPA allocation were provided by Union Minister of State for New and Renewable Energy Shripad Yesso Naik in a written reply to a question in the Rajya Sabha.