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Government update on Refining Capacity, Biofuel & Green Hydrogen Mission
1st December 2025
Minister of State in the Ministry of Petroleum and Natural Gas has provided an update on refining, Biofules and Green Hydrogen
The current total refining capacity of the country is 258.1 million Metric Tonne Per Annum (MMTPA) which is projected to increase to 309.5 MMTPA by 2030. Alongside, the overall Petrochemical Intensity Index (PII) of the public sector oil refineries is anticipated to increase from 4.1 to approximately 9.3 upon completion of ongoing and planned refinery projects
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
National Green Hydrogen Mission (NGHM) has been launched with the objective of production of 5 MMTPA green hydrogen by 2030
Government has also taken various steps to augment the availability of LNG for various sectors which, inter-alia, includes 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