IOC to sell two hydrogen units by the end of this year. Credit: James Glen from Pixabay.

State-run Indian Oil Corporation (IOC) is reportedly planning to sell two hydrogen generating units at its Koyali refinery in Gujarat.

The plan to sell the units to private players is part of the Indian Government’s plans to monetise non-core assets and leverage operational efficiencies.

IOC chairman Shrikant Madhav Vaidya was cited by Reuters as saying that the company plans to sell two hydrogen units at its 276,000 barrels per day (bpd) refinery located at Koyali, Vadodara.

The sale of the two units, each with 72,500 tonnes per annum capacity, is planned to be completed by the end of this year.

Vaidya was cited by PTI as saying: “These (hydrogen generating units) are already operating units. Now we are trying to leverage the efficiency of operations by handing it over to the licensor of the unit.”

Vaidya said that the company would pay the new owner of the hydrogen generating units an annual operation and maintenance charges.

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Vaidya added: “We are trying to leverage hydrogen units. The asset value and O&M (operation and maintenance) cost will be taken into consideration for selecting a licensor or new buyer.”

The firm, however, has no plans to currently sell other units of the refineries.

IOC recently said it plans to invest $4.39bn to expand the oil refinery at Panipat in the state of Haryana.

The expansion project, which is slated for completion by September 2024, is intended to increase the refinery’s capacity to 25 million tonnes per annum from the current capacity of 15 million tonnes per annum.

The Panipat refinery is capable of processing a wide range of both indigenous and imported grades of crude oil into value-added fuels such as petrol, diesel, and ATF.