the government is proposing rules for E85 and E100 (85% and 100% ethanol). A major PSU refinery has plans to produce 30,000 tonnes per year of SAF from used cooking oil, leveraging renewable feedstocks and hydrogen integration. Additionally, refiners are exploring co-processing of non-edible oils and alcohol-to-jet fuel technologies, embedding renewables directly into the product slate. These initiatives represent a critical evolution: from using renewable energy as a utility input to embedding it within refinery outputs. Another major application under implementation is the expansion of renewable power generation integrated with refinery operations. State-run Indian Oil Corporation (IOCL) announced a target of adding 31 GW of renewable energy capacity by 2031 through a mix of organic growth, joint ventures (JVs), and mergers and acquisitions (M&As). IOCL has already signed Memorandum of Understandings (MoUs) with several renewable energy firms and is engaged in active discussions for further expansion. In parallel, state-run BPCL is pursuing a JV with Sembcorp to develop integrated renewable energy and green hydrogen projects in India, including refinery-linked applications. Such partnerships highlight a strategic shift: refiners are increasingly collaborating with renewable developers to access technology, capital, and operational expertise, rather than building capabilities entirely in-house. Advanced renewable integration is also evident in the development of compressed biogas (CBG) ecosystems under initiatives such as Sustainable Alternative Towards Affordable Transportation (SATAT). Multiple CBG plants are being set up that convert agricultural waste into fuel, which can be blended into refinery streams or distributed via existing infrastructure. This not only reduces lifecycle emissions but also links rural biomass supply chains with industrial energy demand, creating a circular energy economy. Equally significant is the electrification of refinery utilities using renewable power. While high- temperature process heat remains difficult to electrify fully, auxiliary systems, such as pumps, compressors, and low-pressure steam generation, are increasingly powered by renewable electricity. Combined with digital energy management systems, refiners are optimising load profiles to align with renewable generation patterns, thereby improving overall energy efficiency.
However, these advancements are not without constraints. The cost of green hydrogen, although declining, still exceeds that of grey hydrogen, necessitating policy support and carbon pricing mechanisms. Infrastructure challenges also persist, particularly around renewable power evacuation, storage, and electrolyser supply chains. Moreover, integrating intermittent renewable energy into highly optimised, continuous refining operations requires sophisticated control systems and operational flexibility. Yet, the trajectory is undeniable: Indian refineries are transitioning from fossil-centric processing hubs into integrated energy complexes that combine hydrocarbons with renewable energy, hydrogen, and bio-based feedstocks. This transition is part of a coordinated national strategy, with ongoing projects already underway. The policy landscape in India is evolving to support this transition. Initiatives like the National Green Hydrogen Mission, renewable purchase obligations, and production-linked incentives for electrolyser manufacturing are creating a conducive environment. Financial tools like green bonds and sustainability-linked loans are helping refiners access capital for low-carbon investments. In conclusion, the Indian refining sector is entering a phase where advanced renewable applications are moving from conceptual frameworks to industrial-scale implementation. Integration of green hydrogen, renewable power, biofuels, and digital optimisation is reshaping the operational and economic logic of refining. As these projects mature, they will not only reduce emissions but also redefine India’s position in the global energy landscape, transforming its refineries into hubs of low-carbon innovation and resilience. Manoj Sharma is an executive leader with more than 35 years of experience in petroleum refining, petrochemical operations, and strategic management. He has proven expertise in refinery optimisation, green initiatives (CCUS, green H₂, biofuels), crude oil trading, risk management, and digital transformation. He has a strong background in international business, process engineering, and corporate governance as a board director. He holds an International MBA from the University of Ljubljana, Slovenia, and a BE in chemical engineering from Punjab University, Chandigarh.
Refining India
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