HPCL eyes net zero carbon emissions by 2040

Indian state refiner Hindustan Petroleum Corp is working on a plan for net zero carbon emissions by 2040, chairman M. K. Surana said on Monday. India, the world’s third-biggest greenhouse gas emitter, is aiming to reach net zero emissions by 2070.

“HPCL is in the process of developing a validated roadmap with the help of a world-renowned consultant to achieve net zero Scope 1 and 2 emissions by 2040,” Surana said at the company’s quarterly earnings press conference. Scope 1 and 2 emissions relates to emissions from crude refining and energy consumption.

He said a Mumbai refinery on the west coast is operating at expanded capacity of 190,000 barrels per day (bpd), while an expansion of the Vizag refinery in southern India to 300,000 bpd would be completed by March.

HPCL hopes to complete a residue upgrade project at Vizag by end-2022 to produce lighter value-added products.

The expansions of the plants is aimed at bringing in efficiencies and cutting emissions, he said.

Surana said HPCL aims to have a green hydrogen capacity of 24,000 tonnes a year, and hopes to commission a 370-tonne-a-year-capacity green hydrogen plant at its Vizag refinery by end-2022.

An electrolyser splits water into hydrogen and oxygen using electricity. For green hydrogen, renewable energy is used for electrolysis.

India’s draft National HydrogenMission mandates that refiners and fertiliser producers should meet half of their hydrogen needs through green hydrogen by 2030.

Refineries use large quantities of hydrogen for de-sulfurisation to make petrol, diesel and other chemicals.

Companies, including Reliance Industries’ (RELI.NS) Adani Group, Indian Oil Corp (IOC.NS), NTPC (NTPC.NS), GAIL (GAIL.NS), and Bharat Petroleum (BPCL.NS) have announced plans to play a critical role in India’s green hydrogen roadmap.

Surana said his firm would invest 960 billion Indian rupees ($12.86 billion) to strengthen its gas sales network in the next few years.

Source: Reuters