India’s total refining capacity is currently 258.1 million metric tons per annum (MMTPA) and is projected to reach 309.5 MMTPA by 2030. Concurrently, the Petrochemical Intensity Index (PII) of public sector refineries is expected to rise from 4.1 to around 9.3 as ongoing and upcoming refinery projects are completed, reflecting the sector’s enhanced integration of petrochemical production and expansion of refining capabilities.
The government has implemented various initiatives to promote biofuels, green hydrogen, and Liquefied Natural Gas (LNG), which inter alia include achieving 20% ethanol blending under the Ethanol Blending Programme (EBP) and broadening the scope of feedstock to enhance the availability of ethanol. The Pradhan Mantri Jaiv Indhan-Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana has been launched to provide financial assistance for setting up projects for advanced biofuels, including Sustainable Aviation Fuel (SAF). For the promotion of Compressed Biogas (CBG), the Sustainable Alternative Towards Affordable Transportation (SATAT) scheme has been launched, and schemes like BAM (Biomass Aggregation Machinery) and DPI (Direct Pipeline Infrastructure) have been introduced to support biomass aggregation and to connect CBG plants to the existing pipeline network.
The National Green Hydrogen Mission (NGHM) has been launched with the objective of producing 5 MMTPA of green hydrogen by 2030. The government has also taken various steps to augment the availability of LNG for various sectors, which, inter alia, includes the establishment of LNG infrastructure, including LNG terminals and LNG stations.
Cleaner fuels such as biofuels, green hydrogen, and LNG have the potential to contribute to emission avoidance across key sectors, including transport and other critical, hard-to-abate industries like cement, iron, and steel. Their adoption has the potential to contribute to the reduction of overall emission intensity and supports the transition to a low-carbon economy, thereby aligning with national climate goals and international commitments.
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