Refineries Must Balance Net-Zero Goals with Energy Security, Experts Say

India's refining and energy sector faces the dual challenge of meeting rising energy demand and securing supplies while moving toward net-zero emissions. Industry leaders highlighted these priorities at The Hindu Sustainability Summit 2026 in Chennai during a panel discussion titled 'Fossils to Net Zero: Transforming India's Refinery and Energy Landscape'. S.G. Venkatesh of Chennai Petroleum Corporation Limited stated that achieving net zero requires cutting the energy needed for production and shifting to cleaner sources. His company targeted net-zero Scope 1 and Scope 2 emissions by 2046. Santosh K. Singh from Larsen and Toubro noted that fossil fuels will remain for at least two decades, making the shift a move to low-carbon systems rather than immediate replacement. He added that green hydrogen faces high costs, and Nandakumar Velayudhan Pillai of Mangalore Refinery and Petrochemicals Limited pointed out that renewable energy's intermittent nature challenges continuous refinery operations. Panellists also warned that geopolitical conflicts and shipping route disruptions threaten India's crude imports, demanding diverse supply sources. Meanwhile, Mr. Pillai noted that refineries are developing sustainable aviation fuel using used cooking oil, with an indigenous plant expected next year. D. Senthil Kumar of Tamil Nadu Petroproducts Limited explained that the Carbon Credit Trading Scheme will push refineries toward compliance-driven efficiency targets, allowing companies to trade surplus credits.