IndianOil’s Gutsy Charge: PM’s Vision Ignites Nation’s Boldest Green Hydrogen Leap at Panipat
IndianOil Corporation (IOCL) on 30.05.2025 has informed the National Stock Exchange that IOCL has finalized India’s Largest Green Hydrogen Project at Panipat. This indeed is an extremely heartening news. Indian Oil being one of the finest energy companies in India has always tried to remain ahead in the energy domain and has been an invaluable energy asset to India.
The Press Release accompanying the letter to SEBI states that the company has made a landmark move to advance India’s clean energy ambitions. Indian Oil has finalized the levilised cost of hydrogen (LCOH) for setting up a 10,000 Tonnes per Annum Green Hydrogen Generation Unit at its Panipat Refinery. For the knowledge of NewsIP readers, LCOH is one of the most common metrics used to benchmark the cost-competitiveness of hydrogen production projects. It’s defined as the equivalent cost per unit of hydrogen that the project should be remunerated along its life cycle in order to obtain a project Net Present Value (NPV) equal to zero. In other words, it is the cost a company should charge customers per unit of hydrogen so that enough money is made to cover the project costs over the project horizon.
It is indeed a Giant Leap for a PSU and comes at a most needed hour. Indian Oil has charged ahead with unyielding resolve, the Green Hydrogen Generation Unit at the Panipat Refinery & Petrochemical Complex would indeed make it a one of its kind anywhere in India. This ambitious venture will be a jewel in the crown of Indian Oil. It cements Indian Oil’s ironclad commitment to spearheading the nation’s clean energy revolution with determination and firm resolve. It shall go a long way in contributing to the energy security of India. Slated for commissioning by December 2027, the green hydrogen output will decisively replace fossil-derived hydrogen in refinery operations, slashing carbon emissions with uncompromising impact. This declaration stands as a defining moment of Indian Oil’s decarburization roadmap, propelling the company toward its Net Zero target with resolute ambition. By employing state-of-the-art technology, Indian Oil is not just reshaping India’s green energy transition—it’s setting a global benchmark. With this monumental step, Indian Oil stands tall as a titan, constantly driving environmental sustainability and kindling a brighter, greener future for India and beyond.
Any nation, even developed ones, would love to own a company like Indian Oil. For long, this PSU has served the nation and its people gallantly, in face of fierce competition and not so level playing fields. In this hour of Indian Oil’s justifiable pride, it may not be out of place to mention that there are murmurs amongst energy experts. In the corridors of power, different scenarios are being built up. Select energy PSUs may again be in for, no not disinvestment this time, but strategic utilization of their assets. This may not necessarily be in the interest of particular PSUs since its only the PSU assets which are scheduled for common use and not the other way round. Oil & Gas business may go the Aviation and POL Marketing route where private players are poised to make enormous gains. The current domestic sale trends of POL have shown that the PSUs have lost ground heavily. The much acclaimed principle of first mover advantage have been lost by PSU OMCs. While it’s true that the Indian Energy Market is large enough for existence of many players both PSUs as well as Private ones, but in most occasions, the consumers don’t stand to gain much if private monopolies dominate.
Coming to the field of Hydrogen Adanis have been pioneers in investment in Green Hydrogen in India. They have plans for 9 Billion US Dollars investment in this sector. Now with PSU companies like Indian Oil throwing their hat in the ring it’s to be seen how things shape up in the Green Hydrogen sector. People in India have seen that the much publicized route of Capital Investment for boosting economy, announced in past few Government Budgets, failed miserably as far as Private Sector was concerned. It was left to the PSEs to make up for some of the projected figures. This story is not new in India. The Nehruvian vision of mixed market economy was an economic necessity of that time. And many believe that it served India well. A look at some of India’s neighboring countries would more than prove the point. Many sectors were served admirably by the PSEs, while others were got spoilt by wrong management decisions and a few hands too many in the honey pot. The Private Sector vary of long gestation was never keen on infrastructure building. The unprecedented Windfall Tax in India made a few telling point on the private companies being able to take advantage of situations which PSUs can’t due to the restrictions imposed. Well, ONGC may have never made the kind of profits which Private Players did but ended up being taxed anyway. There is need to strengthen PSUs right now since they have been the time tested weapons of India’s economic warfare.
India is projected to be the single largest energy consumer in the world surpassing even China in near future. In such a scenario, many energy companies are keenly eying India purely from the market point of view and quick profits. Geopolitical realities should make Indian leaders go not merely by the promised golden energy future but be realistic and hedge their bets carefully. Consequently, Indian Oil’s expedition into Green Hydrogen appears to be a step towards the right direction but caution is certainly the better part of valour in the energy sector.
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