BPCL will invest $18.16 bn in oil, green energy over 5 years

In order to grow its oil business and increase its portfolio of renewable energy sources in order to achieve its 2040 net zero target, Indian refiner Bharat Petroleum Corp plans to invest $18.16 billion over 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.

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. "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," Krishnakumar said during an annual shareholders meeting.

However, Krishnakumar stated that between now and 2040, BPCL would invest 1 trillion rupees in projects like green hydrogen, carbon capture, utilisation, and storage (CCUS), as well as on enhancing energy efficiency to reduce emissions. By 2025 and 10 GW by 2040, the corporation aspires to possess 1 GW and 10 GW, respectively, of renewable energy capacity.

For its 240,000 barrels per day (bpd) Mumbai refinery and Bina refinery in central India, it would invest 10 billion rupees to build 50 megawatts of captive wind power facilities. To increase the percentage of petrochemicals in its business to 8%, BPCL is building a 490 billion rupee 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.

BPCL is considering expanding its 310,000 bpd Kochi refinery in Southern India with a Polypropylene project. The annual fuel shortfall in northern India, according to Krishnakumar, is anticipated to be 10 million tonnes this year. He added that BPCL would spend an additional 375 billion rupees on infrastructure to sell natural gas to homes, cars and small businesses.