Bharat Petroleum Corp (BPCL) revealed plans to invest USD 18.16 billion over the next five years to expand its oil business and bolster its renewable energy portfolio. The announcement was made by Chairman G Krishnakumar during the company’s annual shareholders meeting on Monday.
India, being the world’s third-largest emitter of greenhouse gases, has witnessed a surge in corporate initiatives aimed at reducing emissions. BPCL’s ambitious investment strategy underscores the company’s commitment to achieving a net-zero emissions target by 2040.
Krishnakumar emphasised that the substantial capex outlay of around 1.5 trillion rupees will enable BPCL to generate long-term value for stakeholders while simultaneously safeguarding the planet for future generations. While the chairman did not specify the allocation between core oil business and clean fuel projects, he outlined key areas of investment.
Notably, BPCL plans to channel 1 trillion rupees into various projects designed to foster green hydrogen production, carbon capture, utilization, and storage (CCUS), and enhance energy efficiency to curb emissions. With a goal to own 1 gigawatt (GW) of renewable energy capacity by 2025 and an impressive 10 GW by 2040, the company’s commitment to renewable energy expansion remains resolute.
In an effort to diversify its energy offerings, BPCL will invest 10 billion rupees to establish 50 megawatts of captive wind power plants. These plants will serve the company’s Mumbai and Bina refineries, underlining a broader strategy to incorporate cleaner energy sources.
Furthermore, BPCL is set to elevate its presence in the petrochemical sector. A massive 490-billion rupee ethylene cracker project is underway at the Bina refinery, intended to elevate the petrochemical share of BPCL’s business to 8 per cent. The Bina refinery itself is slated for capacity expansion to 220,000 barrels per day (bpd). Additionally, BPCL is contemplating a Polypropylene project for its Kochi refinery in Southern India.
Recognising the pressing energy demands in northern India, Krishnakumar noted a projected annual fuel deficit of 10 million tonnes for the current year. In response, BPCL will allocate 375 billion rupees to enhance infrastructure for natural gas distribution to households, automobiles, and small industries.