In pursuit of advancing its oil business and expanding its renewable energy portfolio to achieve its 2040 net-zero target, Bharat Petroleum Corp, a prominent Indian refiner, has unveiled plans to invest $18.16 billion over a span of five years, according to Chairman G. Krishnakumar. Businesses 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 the country’s economic growth is anticipated to increase demand for petrochemicals and fuel.
India has established an ambitious objective to reach net-zero emissions by 2070, albeit facing certain challenges in its decarbonisation efforts due to political pressures. Conversely, many Western nations have set mid-century targets for achieving net-zero emissions. Krishnakumar articulated this comprehensive vision during an annual shareholders meeting, stating, “The company has set a planned capex outlay of around 1.5 trillion rupees ($18.16 billion) over the next five years, which will enable BPCL to create long-term value for our stakeholders while preserving our planet for future generations.”
He further elucidated that within the timeframe leading up to 2040, BPCL will allocate 1 trillion rupees towards initiatives such as green hydrogen, carbon capture, utilisation, and storage (CCUS), as well as bolstering energy efficiency to curtail emissions. The corporation has set ambitious goals to possess 1 GW and 10 GW of renewable energy capacity by 2025 and 2040, respectively.
For the development of 50 megawatts of captive wind power facilities at its 240,000 barrels per day (bpd) Mumbai refinery and the Bina refinery in central India, an investment of 10 billion rupees is earmarked. Furthermore, to enhance its petrochemical footprint to 8% of its overall business, BPCL is in the process of constructing a 490 billion rupee ethylene cracker at the 156,000 barrels per day (bpd) Bina refinery, concurrently expanding the Bina refinery’s capacity to 220,000 bpd.
BPCL is also actively contemplating the expansion of its 310,000 bpd Kochi refinery in Southern India through a Polypropylene project. Additionally, Krishnakumar highlighted a projected fuel shortfall of 10 million tonnes in northern India for the current year and stated that BPCL will invest an additional 375 billion rupees in infrastructure aimed at delivering natural gas to households, vehicles, and small businesses.