Indian Economy News

In over five years, Bharat Petroleum Corporation Limited intends to spend US$ 18.16 billion on oil and green energy

  • IBEF
  • August 29, 2023

Aiming for a 2040 net zero target, Indian refiner, Bharat Petroleum Corporation Limited (BPCL) wants to invest US$ 18.16 billion over five years to develop its renewable energy portfolio and grow its oil business.

Companies in India, the third-largest emitter of greenhouse gases in the world, are investing billions of dollars to reduce their emissions, but they are simultaneously investing in fossil fuels because petrochemical and fuel consumption is anticipated to increase as a result of India's economic growth.

The country has set a goal for itself to achieve net zero by 2070. Although some of their decarbonization plans are in jeopardy due to political pressure, many Western nations have set a mid-century aim to achieve net zero.

According to Mr. G. Krishnakumar, Chairman, Bharat Petroleum Corporation Limited (BPCL), the company has set a planned capex outlay of around US$ 18.16 billion in the next five years, which will enable BPCL to create long-term value for stakeholders while preserving our planet for future generations.

He further stated that BPCL would invest the amount till 2040 for projects including green hydrogen, Carbon Capture, Utilisation, and Storage (CCUS) and on improving energy efficiency to cut emissions. The company hopes to own 1 gigawatt (GW) of renewable energy capacity by 2025 and 10 GW by 2040.

To increase the percentage of petrochemicals in its business to 8%, BPCL is building a Rs. 490 billion (US$ 5.93 billion) ethylene cracker at the 156,000 barrels per day (BPD) Bina refinery. The capacity of the Bina refinery is also being increased to 220,000 bpd. Additionally, BPCL is considering expanding its 310,000 bpd Kochi refinery in Southern India with a Polypropylene project.
Mr. G Krishnakumar stated that the annual fuel deficit in northern India is projected to reach 10 million this year. He further mentioned that the company would also invest in infrastructure to sell natural gas to households, automobiles and small industries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.