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

UPDATE - follow-up to Refinery sector must balance energy security with net-zero push: industry experts at The Hindu Sustainability Summit: India's refining and energy sector faces the dual challenge of meeting rising energy demand while shifting toward net-zero emissions, industry leaders stated at The Hindu Sustainability Summit 2026 in Chennai.

Key Challenges And Strategies

During a panel discussion titled 'Fossils to Net Zero: Transforming India's Refinery and Energy Landscape', industry experts explored pathways for the sector. S.G. Venkatesh, Director (Technical) at Chennai Petroleum Corporation Limited, explained that reaching net zero requires reducing the energy needed for finished products and moving to cleaner energy sources. Mr. Venkatesh noted that his company cut energy use while hitting record crude throughput through conservation, cleaner fuels, and digitalisation, and aims for net-zero Scope 1 and Scope 2 emissions by 2046. He added that reducing Scope 3 emissions depends on broader changes in consumer sectors like transport. Santosh K. Singh, Chief Sustainability Officer at Larsen and Toubro, pointed out that fossil fuels will remain for at least two decades, framing the shift as moving from high-carbon to low-carbon energy. He noted that green hydrogen has moved to implementation, but high costs and the need for a complete ecosystem remain major hurdles. Nandakumar Velayudhan Pillai, Director of Refinery at Mangalore Refinery and Petrochemicals Limited, highlighted that the intermittent nature of renewable energy clashes with the constant feed flow needed by refineries. Mr. Pillai also noted that refineries are developing sustainable aviation fuel using used cooking oil, though collecting enough oil and meeting certification rules are tough. D. Senthil Kumar, Managing Director of Tamil Nadu Petroproducts Limited, discussed how the Carbon Credit Trading Scheme will turn energy efficiency into a compliance rule for refineries and petrochemical plants, replacing voluntary efforts. Under this scheme, industries get emission targets based on a baseline, allowing efficient companies to trade extra credits and forcing others to buy them. Panellists also warned that geopolitical conflicts and shipping route disruptions can hurt crude supplies, making source diversification crucial for import-dependent India.