Green Hydrogen Breakthrough: 5 Bold Moves in Sembcorp–BPCL Mega Deal to Supercharge India’s Clean Energy Future

Singapore’s Sembcorp Industries and India’s Bharat Petroleum (BPCL) have launched a joint venture to advance green hydrogen and renewable energy projects, combining Sembcorp’s 6GW renewable energy portfolio in India with BPCL’s oil and gas expertise. Targeting hard-to-decarbonize sectors, the collaboration focuses on green ammonia production, clean energy infrastructure in ports, and hydrogen bunkering to support shipping decarbonization.

The move aligns with India’s ambitious goal of producing 5 million tonnes of green hydrogen annually by 2030, backed by a ₹22.39 billion government incentive scheme. While challenges like high production costs and scaling electrolyzer capacity persist, the partnership leverages BPCL’s refining expansion plans and Sembcorp’s low-cost renewables to bridge innovation with industrial demand. This synergy highlights a strategic shift for fossil fuel giants toward renewables and underscores India’s push to balance energy security with climate commitments.

By prioritizing ports and heavy industries, the JV could catalyze India’s emergence as a green hydrogen hub, setting a template for public-private collaboration in emerging markets.

Green Hydrogen Breakthrough: 5 Bold Moves in Sembcorp–BPCL Mega Deal to Supercharge India’s Clean Energy Future

Singapore’s Sembcorp Industries has joined forces with India’s state-owned Bharat Petroleum Corporation Limited (BPCL) to establish a groundbreaking joint venture (JV) focused on green hydrogen and renewable energy projects. This partnership, announced in April 2025, signals a strategic alignment between traditional energy expertise and cutting-edge renewables innovation, with implications for India’s energy independence and climate goals.

Why This Partnership Matters 

India, the world’s third-largest energy consumer, faces a dual challenge: meeting rising demand while slashing emissions. The country’s pledge to produce 5 million tonnes of green hydrogen annually by 2030 hinges on collaborations like this JV. Sembcorp brings 6GW of operational renewable energy assets in India—a critical foundation for cost-effective green hydrogen production. BPCL, a refining giant targeting 45 million tonnes of annual capacity by 2028, offers infrastructure and market access to scale solutions for industries like shipping, steel, and fertilizers.

Focus Areas: Ports, Ammonia, and Bunkering 

The JV targets three high-impact areas:

1. Green Ammonia: A derivative of green hydrogen, ammonia is essential for fertilizers and could revolutionize clean shipping fuel.

1. Port Decarbonization: Developing hydrogen bunkering (refueling) infrastructure at ports could position India as a hub for low-carbon maritime trade.

1. Renewable Integration: Leveraging Sembcorp’s solar and wind projects to power electrolyzers, reducing reliance on fossil fuels.

India’s Green Hydrogen Landscape: Opportunities and Hurdles 

While India’s SIGHT Programme has allocated ₹22.39 billion ($259 million) to boost production, challenges persist. Green hydrogen remains costly compared to conventional alternatives, requiring massive renewable energy capacity and electrolyzer scaling. The JV’s success may depend on policy support, such as mandates for industries to adopt green hydrogen, and cost reductions through technological innovation.

Strategic Implications 

BPCL’s pivot reflects a broader trend of fossil fuel giants diversifying into renewables. For Sembcorp, this JV strengthens its foothold in India’s fast-growing clean energy market. The collaboration also underscores the role of public-private partnerships in achieving national climate targets—a model other emerging economies might replicate.

What’s Next? 

The JV’s undisclosed financial terms leave questions about scale, but its strategic vision is clear: merging Sembcorp’s technical prowess with BPCL’s industrial reach to decarbonize sectors where electrification isn’t feasible. As India races toward its 2030 goals, this partnership could become a blueprint for bridging the gap between ambition and execution in the global energy transition.  

Insight: The alliance highlights a critical truth about the net-zero journey—traditional energy players must reinvent themselves, while renewables leaders need partners with deep industry networks. For India, balancing growth and sustainability will require more such synergies, blending innovation with pragmatism.