State-run exploration and production company, Oil India (OIL), is actively exploring the establishment of green hydrogen valleys, also known as hubs, as part of its comprehensive energy-transition initiative. The firm's chairman and managing director, Ranjit Rath, revealed in an interview that OIL is also keen on investing in bioethanol and traditional renewable energy projects.

Aligned with its energy-transition objectives, OIL aims to replace diesel consumption with natural gas across its group companies, including Numaligarh Refinery Ltd. Additionally, the company is investigating the potential of geothermal energy in the Himalayan region of Himachal Pradesh. Geothermal energy in India is in its infancy but holds immense potential, with the capacity to add up to 10 gigawatts (GW) of power.

Rath emphasised the company's commitment to achieving net-zero emissions by 2040, earmarking a substantial budget of around Rs 25,000 crore for various initiatives. This budget includes efforts in bioethanol production, gas flaring reduction, and infrastructure development for natural gas evacuation, feeding into both the North-East gas grid and the national gas grid.

In collaboration with academic institutions like IIT Guwahati and IIT Bhubaneswar, OIL plans to participate in the establishment of hydrogen valley innovation clusters, defined as specific geographical regions where hydrogen serves diverse sectors such as mobility, industry, and energy. Numaligarh Refinery has already made significant strides by issuing a letter of award for a green hydrogen production capacity of approximately 20 kilotonnes per annum (KTPA). Moreover, the company is actively engaged in the solar and wind energy sectors, with plans to expand its solar capacity in Assam and Himachal Pradesh.

OIL's approach to growth in the renewable energy sector emphasises joint ventures with state government entities, fostering local collaborations and easing power purchase agreements. The company's foray into the 2G ethanol segment, utilising bamboo as feedstock, exemplifies its commitment to sustainable energy solutions.

India's renewable energy sector, spanning solar, wind, and emerging fields like green hydrogen, has witnessed significant interest from both state-owned entities and private companies. Conventional energy firms, including those in oil and gas and power segments, are diversifying operations to align with ambitious climate goals and net-zero targets. OIL's strategic investments and collaborations underscore its proactive role in shaping India's renewable energy landscape.

Source: Mint