IOCL's Commitment to Renewable Energy and Resilience Amid Trade Uncertainties

IOCL Chairman A S Sawhney stated that US tariffs won't affect crude oil prices but could disrupt supply chains. IOCL is expanding renewable energy, including Sustainable Aviation Fuel and green hydrogen projects, to ensure energy security and economic resilience while aligning with India's renewable energy goals.

Crude oil prices are unlikely to be influenced by US President Donald Trump’s tariff threats, according to A S Sawhney, Chairman of Indian Oil Corporation Ltd (IOCL). Speaking exclusively to ANI at the India Energy Week 2025, Sawhney indicated that while tariffs might not impact oil prices directly, they could disrupt existing supply chains, logistics, and trade routes.

Sawhney elaborated that any US tariffs on crude imports, such as those from Mexico, would simply prompt American refiners to seek alternative suppliers. Consequently, Mexican oil would find new markets, underscoring a potential shift in global trade routes.

In response to developments in renewable energy, Sawhney highlighted IOCL's efforts to decarbonize the aviation sector by increasing the production of Sustainable Aviation Fuel (SAF). The Chennai Petroleum Corporation Limited refinery has proven its ability to produce SAF, while Panipat refinery is slated to begin SAF production by June 2025.

IOCL has ambitious SAF adoption targets: aiming for 1% usage by 2027, 2% by 2028, and 5% by 2030. To achieve these, a major SAF production facility is being set up in Panipat, positioning IOCL to lead India's SAF fuel supply chain. Additionally, India’s largest green hydrogen plant is under development in Panipat, with a planned capacity of 10,000 tons per annum.

This plant is expected to significantly impact India's green hydrogen ecosystem, setting pricing and viability standards. This initiative supports India's renewable push, making hydrogen fuel a commercially feasible future option. IOCL is also investing in Compressed Bio Gas (CBG) by setting up 30 bio-gas plants with its partners, fostering entrepreneurship in this space.

By expanding into renewable energy and green technologies, IOCL is not only boosting its sustainability portfolio but also ensuring energy security and resilience against potential global trade disruptions.