09-Feb-2022 | Market Research Store

Bharat Petroleum Corporation Limited (BPCL) is likely to invest Rs 25,000 Cr to improve its portfolio of renewable energy and actively work towards achieving net-zero carbon emission goals. Also, the company is building a team for promoting diversification. However, these efforts are part of the company's goal to achieve net-zero emissions this year.

BPCL is focusing on developing 10 GW of renewable energy capacity with the help of inorganic and organic roots by the end of 2020 while the company is undergoing privatization. The current capacity of the company is 45 MW.

BPCL With Rs 25,000-Cr Investment Will Develop 10 GW Clean Energy Capacity By 2040

The capacity is being developed to meet the state-run captive demand of the company, primarily from petrochemical and refinery units. This capacity is likely to be developed in the very short term. The company can also agree to a power purchase agreement with buyers, stated by company officials.

The planned portfolio for renewable energy by BPCL comprises biomass 40 MW, small hydro 60 MW, wind 100 MW, and solar 800 MW. Hydrogen will also be a part of the portfolio at a later stage. Furthermore, the company has also joined hands with Bhabha Atomic Research Centre to leverage the alkaline electrolyzer technology for the production of green hydrogen.

Also, the company is scouting for ideal land to develop the purchasing units in Delhi, Rajasthan, Madhya Pradesh, Uttar Pradesh, and Bina. Last month, under the ministry of new and renewable energy, the company collaborated with Solar Energy Corporation of India to develop 10 GW of renewable capacity by the end of 2040. However, the pandemic has significantly disrupted the investment climate for energy companies. Thereby the investor activism has pushed energy organizations to take a view at scaling back investment in fossil fuel projects and supporting investments in building a greener portfolio. Simultaneously, it is likely to hit the government's plan to divest a 52.9 8% stake in the company for around Rs 60,000 crores.

“We have aspirations to reach 1 GW of renewable energy in the short term (by 2025) and a 10 GW portfolio, say, by 2040 or earlier," said Amit Garg, executive director of renewable energy at BPCL.

The organization of the portfolio will help the company achieve the goal of net-zero emission this year, which in turn also assisted transition to gathering at pace. The company has made a dedicated commitment towards lowering emissions from the energy utilized and crude oil refining operation by the end of 2040.

The immediate step in building the portfolio will be towards achieving a 1 GW capacity worth Rs 5,000, which is likely to be primarily fueled by solar power by the end of 2025. In 2022-23, the company is likely to make a Rs 2,000 crores investment and also achieve a few acquisition deals.

BPCL is also making heavy investments in green refineries, clean fuel, carbon footprint reduction, and efficiency improvement.