Mr. Deb Adhikari, Director (Exploration & Production), FIPI, commenced the session with his opening remarks by highlighting the significant opportunity of value extraction from produced water. He mentioned that produced water is the largest and most unwanted by-product of the oil and gas production process. With a majority of oil fields worldwide either mature or approaching maturity, water production continues to rise in line with ageing fields. As a general thumb rule in oilfield operations, the volume of produced water is expected to almost double over the next decade. Many Indian fields are highly mature, with some reporting higher water cuts, the actual volume of produced water may be even higher. The handling, treatment, and disposal of such substantial quantities pose significant operational and environmental challenges. Rising water cut necessitates larger fluid handling and treatment facilities, increased chemical consumption, and more complex effluent treatment plant (ETP) operations. Furthermore, growing environmental concerns and increasingly stringent discharge norms imposed by pollution control authorities have added to this complexity, making ETPs one of the largest cost centres in oilfield operations.

However, within this challenge lies a promising opportunity. Several companies have begun adopting innovative technologies to treat produced water for industrial applications and, in certain cases, even for municipal use. Emerging solutions also include microbial processes for generating green hydrogen from produced water. Additionally, there is growing interest in extracting valuable minerals and critical elements present in produced water. Beyond common salts such as sodium, calcium, magnesium, potassium, bromine, and iodine, produced water may contain trace quantities of metals such as lithium, nickel, cobalt, manganese, and even platinum group elements, along with certain rare earth elements. Lithium, in particular, holds strategic importance due to its extensive use in batteries and renewable energy systems. The extraction of such critical minerals especially lithium represents an emerging area of research and development, offering the possibility of transforming a major waste stream into a valuable revenue source while strengthening domestic supply of strategic resources. Through such initiatives, what is currently regarded as the largest cost centre in oilfield operations could, in time, evolve into a sustainable profit centre.

Mr. Maxim Irishkin, Director-Business Development, AXION, began by expressing his appreciation to the organizers and emphasized that such webinars represent an important step towards sustainability both for India and for the global oil and gas sector. He highlighted that developing local production and supply of critical elements, particularly lithium, is vital for strengthening national resource security and advancing sustainable industrial practices. He structured his presentation in two parts: first, an overview of the lithium market and the key drivers shaping its growth; and second, the technological and economic aspects of lithium extraction, especially from oilfield brines. He noted that while lithium serves as a primary case study, similar extraction approaches can be extended to other valuable elements present in brine resources.

Elaborating on market dynamics, he explained that lithium demand is primarily driven by three major trends: the rapid expansion of electric vehicles (EVs), the growth of energy storage systems to support renewable power integration, and the global shift toward sustainable mining practices. Currently, EVs account for significant lithium demand, followed by electronics and grid-scale energy storage. Although lithium prices have softened in the recent past, long-term projections indicate a supply deficit due to rising demand and the long gestation period typically seven to eight years for new mining projects. He further underscored the impact of geopolitical factors, as well as evolving environmental regulations, where direct lithium extraction (DLE) technologies are increasingly mandated. Compared to conventional methods such as hard rock mining and solar evaporation ponds, DLE technologies based on adsorption, ion exchange, solvent extraction, or membranes offer faster processing, lower environmental footprint, and the ability to extract lithium even from lower-grade brines.

Focusing on the relevance to the oil and gas industry, Mr. Irishkin explained that oilfield brines present a strategic opportunity, as the produced water is already being extracted during routine operations, thereby eliminating significant upstream capital expenditure. By integrating a modular DLE unit into existing facilities positioned between water separation and reinjection companies can selectively extract lithium before reinjecting the treated water into reservoirs. The process involves removal of residual organics, adsorption of lithium onto specialized sorbents, elution using demineralized water, purification, concentration, and final precipitation of lithium carbonate for sale in the open market.

Mr. Irishkin then conducted the Q&A session, during which he addressed the queries raised by participants and shared his insights and perspectives on the various issues discussed.

Concluding the webinar, FIPI complimented Dr. Maxim for his comprehensive and well-structured presentation, which effectively covered the key drivers of lithium demand, the rapidly expanding battery energy storage market, and the emerging opportunities for the oil and gas sector in the domain of critical mineral extraction. The interactive Q&A session further enriched the discussion by addressing pertinent queries from participants and providing valuable insights on the subject.

FIPI also extended its sincere appreciation to all participants from the energy industry for their active and engaging participation during the webinar. The session was well attended and widely appreciated for its relevance, depth of content, and clarity of presentation.