Guwahati, Feb 26: India is set to push its ethanol blending target beyond 20%, signalling a major shift toward sustainable energy.

Petroleum Minister Hardeep Singh Puri, speaking at the thematic session “Unlocking Assam’s Energy Potential: Building Future-Ready Oil and Gas Infrastructure, Innovation, and Investment Aligned with Global Energy Transitions” during Advantage Assam 2.0, announced that a special committee under NITI Aayog is evaluating the feasibility of increasing biofuel blending beyond the current target.

“We are already at 19.6% ethanol blending and will reach 20% by next month, well ahead of our 2026 target,” Puri stated. India currently can blend 1,700 crore litres of ethanol, with 1,500 crore litres already being utilized.

Puri also underscored the urgent need to develop green hydrogen, especially as India spends $150 billion on fuel imports. “Currently, green hydrogen costs $4.5 per kg, but if we can bring it closer to $2.5 per kg, it will spark a revolution,” he said.

While global economies transition toward clean energy, Puri stressed that India must balance economic growth with sustainability. “With a growth rate of 6-7%, India needs fuel to sustain its development while preparing for a cleaner future,” he said.

He further announced that all fossil fuel production companies in India will achieve net-zero emissions by 2045. With India’s energy consumption rising—from 5 million barrels per day to 5.5 million barrels, and an expected surge to 6.5-7 million barrels shortly—the government is aggressively expanding its exploration and production (E&P) capabilities.

Puri revealed that under the Open Acreage Licensing Programme (OALP), India plans to open 1 million sq km for hydrocarbon exploration. “In OALP Round 9, 38% of the bids focused on this area, and we expect even greater interest in OALP 10,” he added. Global giants such as Shell, British Petroleum, and Chevron have already expressed interest in investing in India’s oil and gas sector.

Speaking on the occasion, Assam Chief Minister Himanta Biswa Sarma highlighted Assam’s pivotal role in India’s energy landscape, tracing the state’s oil legacy back to the late 19th century. With 12% of India’s natural gas reserves and half of its onshore gas production, Assam remains a major energy contributor.

Key statistics reinforcing Assam’s energy dominance include four operational refineries with a total refining capacity of 7.45 million metric tonnes (MMT), 1,180 retail fuel outlets and an annual LPG consumption of 0.5 MMT and major petrochemical players like Brahmaputra Cracker and Polymer Limited (BCPL), Assam Petro-chemicals Limited (APL), and Numaligarh Refinery Limited (NRL) contributing ₹11,700 crore annually in royalties and taxes.

Sarma projected that by 2030, Assam’s crude oil output will double, and natural gas production will rise from 3.2 to 6.3 billion cubic meters (BCM). He also detailed expansion projects at BCPL and NRL, which will transform Assam into a petrochemical hub, driving industrial growth and job creation.

Under the Hydrocarbon Vision 2030, Assam is witnessing major infrastructure advancements, including Barauni-Guwahati Pipeline (BGPL), connecting Assam to India’s national gas grid, 1,670 km North East Gas Grid (NEGG), promoting regional energy distribution and expansion of City Gas Distribution (CGD) networks, with 22 CNG stations across Assam.

Sarma also announced that Oil India Limited (OIL) has commissioned India’s first Green Hydrogen plant in Jorhat, producing 10 kg per day using solar energy. Collaboration with IIT Guwahati and OIL aims to integrate green hydrogen into transportation and industry, opening new investment opportunities in green ammonia, sustainable aviation fuels, compressed biogas, and smart chemicals.

The session, chaired by Mines & Minerals Minister Kaushik Rai, reinforced Assam’s position as a critical player in India’s energy transition. With increasing investments, policy support, and sustainable innovation, India is well on its way to leading the global shift toward clean energy.

Also Read: Gadkari unveils mega road projects to bridge Barak and Brahmaputra, boosting Northeast connectivity

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