The country's largest oil refiner and a big user of hydrogen, Indian Oil Corp. Ltd., will team up with top renewable energy producer ReNew Power and Larsen & Toubro Ltd. to generate green hydrogen, which is gaining traction in the South Asian nation's clean-energy push.
According to a joint statement from the three companies, they have signed a binding term sheet to jointly develop green hydrogen projects, while the state-run refiner and the engineering major will form a separate cooperation to make green hydrogen electrolyzers. Green hydrogen initiatives at Indian Oil's Mathura and Panipat refineries in northern India would be the focus of the agreement.
Green hydrogen, the cleanest form of fuel, is a possible way to decarbonize heavy sectors like steel, cement, and oil refineries. India, the world's third-largest producer of greenhouse emissions, intends to lead and has received backing from two of the country's wealthiest billionaires, Mukesh Ambani and Gautam Adani. By 2030, India hopes to create 5 million tons of green hydrogen, with a demand of 12 million tons.
Oil fell on Friday as representatives from the International Energy Agency (IEA) agreed to participate in the largest ever US oil hold discharge.
After US President Joe Biden confirmed the delivery on Thursday, both Brent and US unrefined benchmarks fell over 13%, their biggest weekly drops in two years.
Brent crude was trading at $104.39 a barrel, down 32 cents, or 0.3 percent. Rough futures for US West Texas Intermediate (WTI) declined $1.01, or 1%, to $99.27.
Since May, Biden has reported an arrival of 1,000,000 barrels per day (BPD) of raw petroleum, the largest delivery from the US Strategic Petroleum Reserve ever at 180 million barrels (SPR).
OPEC+, which includes the Organization of Petroleum Exporting Countries and partners such as Russia, maintained their May yield target of 432,000 BPD on Thursday, despite pressure from the West to increase it.
Last week, US energy companies added oil and gas rigs for the second week in a row, but progress in the infrastructure remains modest as drillers continue to return money to investors from high crude prices rather than supporting creation.
Oil prices fell further on Monday as investors awaited the release of supplies from consuming countries' strategic reserves, while a truce in Yemen could ease Middle East supply disruption concerns.
Brent crude futures were down 79 cents, or 0.8 percent, to $103.60 per barrel at 0037 GMT, while West Texas Intermediate crude was down 82 cents, or 0.8 percent, to $98.45 per barrel. When the markets opened on Monday, both contracts were down $1.
For the first time in the seven-year conflict, the UN arranged a two-month truce between a Saudi-led coalition and the Houthi militia linked with Iran. During the battle, the Houthis have attacked Saudi oil installations, causing supply disruption from Russia.
"This was a supply danger, and a ceasefire would alleviate that concern," said Price Futures Group analyst Phil Flynn.
According to industry sources, oil and gas condensate production in the world's No. 2 exporter decreased to 11.01 million barrels per day (bpd) in March, down from an average of 11.08 million bpd in February.