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NEW DELHI : State-run Indian Oil Corporation and NTPC have signed an agreement for collaborating on renewable energy.

"IndianOil and NTPC have come together for the generation and storage of renewable energy or other cleaner forms of energy, including gas-based power, primarily to cater for IndianOil Refineries or other installations," the companies said in a joint statement on Friday.

This comes in the backdrop of Indian Oil announcing its plan to build the country’s first green hydrogen plant at its Mathura refinery. Besides, India is considering a proposal to make it mandatory for fertilizer plants and oil refineries to purchase green hydrogen as part of plans to cut the nation’s dependence on fossil fuels.

“This is a first-of-its-kind initiative by two leading public sector energy majors of India to support the country's commitment to achieve renewable energy targets and reduce greenhouse gas emissions," the statement said.

This comes in the backdrop of NTPC, India’s largest power generation firm’ pivot towards green energy. NTPC Group posted a net profit of $1.85 billion in FY21. It has also set an aim of a 10% reduction in net energy intensity.

“IndianOil has plans to scale up its portfolio of renewable energy with solar, wind, etc., for refinery operations, thereby reaffirming its commitment towards environmental sustainability and reduction of carbon footprints. IndianOil plans to meet 85% of the power requirement for new projects in its refineries primarily from renewable sources in the near future," the statement said.

NTPC has an installed capacity of about 67 gigawatt (GW) across 70 power projects, with 18 GW under construction. It has set an ambitious aim of 60 GW renewable energy capacity by 2032 from the existing 4.7 GW. NTPC has won 4.32 GW of renewable energy bids since the last financial year. It plans to invest 1 trillion between 2019 and 2024 to become a 130GW power producer by 2032.

“IndianOil is also well poised to leverage India's sustainable commitments through multiple green initiatives, including increased use of natural gas in all refineries, ethanol-blended Motor Spirit, sale of Compressed Biogas (CBG) and production of biodiesel using cooking oil as feedstock. IndianOil's R&D team has undertaken various pilot projects in the field of solar power, solar thermal and solar hydrogen and has been leading India's foray under the Government of India's National Green Hydrogen Mission," the statement added.

In the electric mobility sector, the ‘IOC Phinergy Private Limited’ has been formed between IndianOil and the Israeli company Phinergy, to commercialise aluminium-air battery technology for the original equipment manufacturers in India.

NTPC REL has also inked a pact with the Union Territory of Ladakh for a green hydrogen mobility project, with the company along with NVVN jointly executing the project. NTPC also plans to partner with National Investment and Infrastructure Fund, the country’s quasi-sovereign wealth fund, and Oil and Natural Gas Corporation to acquire and develop green energy assets including offshore wind projects. 

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