Overall cost reduction is the important objective of every industry. In a chemical industry electricity and fuel are the important raw materials. From this study it is found that furnace oil is the mainly used fuel in chemical industry. Mainly it is used in the operation of boilers, as steam is an important requirement in every chemical industry. It is found that during every financial year the amount spend on purchasing furnace oil goes on increasing. Several studies say that cost of furnace oil (low grade diesel) increases in the coming years and also there is a chance of fuel scarcity. In this chemical industry, during the process study it is found that hydrogen is formed as a byproduct during production process, and a part of this hydrogen is getting wasted. This paper aims in study the opportunities of using hydrogen as fuel in place of furnace oil. This study is very important for Government sector chemical industries for reducing the overall production cost.
