Refining India June 2026 Issue

India’s potential as a global leader in green hydrogen Green hydrogen represents both a decarbonisation imperative and a strategic opportunity for India

Ishita Bansal

H ydrogen has moved decisively from the margins of industrial energy discussions to the centre of the global energy transition. For the refining, fertiliser, petrochemical, steel, and long-distance transport sectors, hydrogen is no longer viewed merely as a process input, but increasingly as a strategic decarbonisation lever capable of reshaping emissions profiles, feedstock strategies, and long-term competitiveness. As governments, industries, and financial institutions align around net-zero pathways, hydrogen – particularly

significant carbon emissions. The International Energy Agency (IEA) estimates that conventional hydrogen production contributes close to one billion tons of carbon dioxide annually. This reality has placed hydrogen squarely in the crosshairs of climate policy, driving a structural shift away from conventional pathways towards low-emissions alternatives. Hydrogen can be produced with multiple processes and energy sources; a colour code nomenclature is becoming commonly used to facilitate discussion (see Figures 2 and 3 ).

green hydrogen – has emerged as a critical enabler for decarbonising hard-to- abate sectors where direct electrification is either technically constrained or economically prohibitive. Globally, hydrogen demand today is dominated by industrial uses, with refining and ammonia production accounting for the majority of consumption (see Figure 1 ). Historically, this hydrogen has been produced almost entirely from fossil fuels, primarily through steam methane reforming (SMR) and coal gasification, resulting in

Production

Transformation

Transport

End use

H

Industry

Steel industry

Renewable energy

Chemical industry

Reneries

No transformation

H

H

Transport

NH

H

Electrolysis

Shipping

Shipping

Aviation Cars Rail

Trucks

Transformation

Pipeline

Trucks

Synthetic fuels *

H CO +

Sustainable CO capture

Buses

H

Heating

Storage

Green ammonia

H

N +

NH

H

Power generation

Source: IRENA * The term synthetic fuels refers here to a range of hydrogen-based fuels produced through chemical processes with a carbon source (CO and CO captured from emission streams, biogenic sources or directly from the air). They include methanol, jet fuels, methane and other hydrocarbons. The main advantage of these fuels is that they can be used to replace their fossil fuel-based counterparts and in many cases be used as direct replacements – that is, as drop-in fuels. Synthetic fuels produce carbon emissions when combusted, but if their production process consumes the same amount of CO, in principle it allows them to have net-zero carbon emissions. Figure 1 Green hydrogen production, conversion, and end uses across the energy system

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