Indian Oil Corporation (IOC) is preparing to roll out a nationwide network of green hydrogen fuel dispensing stations as part of its broader energy transition strategy. The move aligns with IOC’s $30 billion investment plan aimed at achieving net-zero carbon emissions by 2046.

The initiative involves establishing green hydrogen retail outlets at new, dedicated locations rather than integrating them into existing petrol pump networks. This decision is based on the need for separate infrastructure and enhanced safety protocols specific to hydrogen fuel, which differs significantly from conventional fuels in handling and storage requirements, reported Mint.

The fuel will be sourced from Indian Oil’s upcoming 10,000 tonne-per-annum green hydrogen production unit at its Panipat refinery, which is expected to be operational by December 2025. Once commissioned, the facility will initially cater to internal consumption by replacing grey hydrogen in the refining process and gradually expand to serve the mobility sector.

This development is seen as a step toward reducing the levelized cost of green hydrogen. Indian Oil recently estimated this cost at $4.66 per kg for the Panipat project, marking progress towards the government’s long-term goal of bringing prices down to $1 per kg. Achieving price parity is seen as essential for large-scale adoption in transportation and industrial applications.

India currently has only a handful of hydrogen dispensing stations, with two owned by Indian Oil. The limited infrastructure remains a key bottleneck in developing a viable green hydrogen-powered mobility ecosystem. Expanding the network is viewed as essential to enabling the commercial rollout of hydrogen fuel cell electric vehicles.

IOC’s strategy also includes potential participation in export markets. With India targeting 5 million tonnes of green hydrogen production annually by 2030 under the National Green Hydrogen Mission, Indian Oil plans to complement domestic deployment with export opportunities.

Several private sector players have also entered the green hydrogen space. Reliance Industries has announced a roadmap to bring hydrogen production costs down to $1 per kg. Adani Group recently commissioned India’s first off-grid green hydrogen pilot plant in Kutch, Gujarat. AM Green, backed by Greenko’s founders, plans to begin production at its green ammonia facility in Andhra Pradesh by 2026, targeting exports to Europe through offtake agreements with firms such as Uniper, Yara, and Keppel.

Other notable developments include ReNew Energy’s agreement with Japan’s JERA for evaluating a green ammonia project, and Avaada Group’s partnership with Switzerland’s Casale to build a plant in Odisha. Indian Oil is also collaborating with Larsen & Toubro and ReNew Power through a joint venture formed in 2023 to develop green hydrogen projects domestically.

Efforts are also underway to address the high capital costs associated with hydrogen fuel station infrastructure. Industry stakeholders have been encouraged to innovate and reduce the average cost of setting up a hydrogen station, currently estimated at ₹7 crore to a more scalable level of ₹50 lakh.

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Indian Oil draws up green hydrogen fuel retail network plan.pdf