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Green Refineries: A Strategic Shift for India’s Energy Security

As India emerges as the world’s fastest-growing major economy, its energy demand is rising at an unprecedented pace. Yet, this growth remains tightly linked to imported oil and gas—exposing the country to price volatility, supply disruptions, and geopolitical risks such as sanctions, tariffs, and conflicts in fuel-exporting regions. This is where the concept of a Green Refinery becomes strategically transformative.

A green refinery reimagines the role of a conventional oil refinery. Instead of processing crude oil, it converts carbon dioxide (CO₂) and green hydrogen into green fuels, also known as synthetic fuels or e-fuels. CO₂ is captured from industrial flue gases, directly from the atmosphere using Direct Air Capture, or biologically through algae and cyanobacteria-based bioreactors. Green hydrogen is produced either via renewable-powered electrolysis or sustainable biomass pathways.

These two inputs—CO₂ and green hydrogen—are reacted at specific temperatures in the presence of advanced catalysts to produce a range of clean fuels. The outputs include green diesel, sustainable aviation fuel, DME, ethanol, methanol, and other hydrocarbons. Critically, these fuels are drop-in replacements for fossil fuel-based hydrocarbons, meaning they can be used in existing engines, aircraft, shipping, and industrial systems without major infrastructure changes.

From a geopolitical lens, green refineries offer India insulation from global oil price shocks, trade tariffs, and strategic dependencies on energy-exporting nations. By producing fuels domestically from carbon and renewable energy, India can convert emissions into economic value.

For a rapidly expanding economy like India, energy security is no longer optional—it is foundational. Green refineries align climate action with national interest, enabling energy independence, supply stability, and long-term economic resilience, while positioning India as a global leader in the future fuels economy.