India’s Refining Capacity Set to Reach 309.5 MMTPA by 2030; Green Hydrogen Takes Centre Stage in Clean Fuel Push

India’s total petroleum refining capacity stands at 258.1 million metric tonnes per annum (MMTPA) and is projected to rise to 309.5 MMTPA by 2030, according to a written reply by Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, in the Rajya Sabha. The Petrochemical Intensity Index (PII) of public sector oil refineries is also expected to more than double—from 4.1 to around 9.3—once current and planned refinery expansion projects are completed.

Green Hydrogen Positioned as a Key Driver of India’s Clean Energy Transition

A major highlight of the Ministry’s update is the growing emphasis on green hydrogen. Under the National Green Hydrogen Mission (NGHM), India has set a target of producing 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030. The Mission aims to accelerate industrial decarbonisation, cut emissions from fossil-fuel-heavy sectors, and establish India as a global hub for green hydrogen production and exports.

The government views green hydrogen as a strategic fuel capable of significantly reducing emissions in hard-to-abate sectors, including steel, cement, fertilisers and long-distance mobility. Its large-scale adoption is expected to play a critical role in lowering the country’s overall emission intensity and achieving long-term climate commitments.

Biofuels and LNG Strengthen India’s Clean Fuel Ecosystem

Alongside green hydrogen, the government has implemented multiple initiatives to scale up the use of biofuels and Liquefied Natural Gas (LNG):

• The Ethanol Blending Programme (EBP) is targeting 20% ethanol blending, supported by expanded feedstock availability.
• The PM JI-VAN Yojana is providing financial assistance for advanced biofuel projects, including Sustainable Aviation Fuel (SAF).
• The SATAT scheme promotes Compressed Biogas (CBG), while the BAM and DPI schemes support biomass aggregation and pipeline connectivity for CBG plants.
• LNG availability is being enhanced through new LNG terminals, stations and infrastructure expansion.

Low-Carbon Fuels Crucial for Industrial Decarbonisation

The Ministry noted that cleaner fuels—biofuels, green hydrogen and LNG—collectively offer significant potential for emission reduction across transport and energy-intensive industries. Their adoption supports India’s transition toward a low-carbon economy, reinforcing national climate targets and international commitments.

Shri Suresh Gopi emphasised that these initiatives represent a coordinated national effort to diversify the energy mix, reduce dependence on fossil fuels, and strengthen industrial competitiveness in a carbon-constrained global landscape.