IndianOil to set up new unit for renewables business
2 min read . Updated: 15 Mar 2023, 09:31 PM IST
Premium- The company said that its board of directors on March 14 approved the formation of a wholly-owned subsidiary to operate in the domain of low carbon new, clean and green energy businesses
NEW DELHI : State-run Indian Oil Corporation Ltd plans to set up a separate vertical for its renewables business.
In a regulatory filing, the company said that its board of directors on March 14 approved the formation of a wholly-owned subsidiary to operate in the domain of low carbon new, clean and green energy businesses.
The formation of the subsidiary is subject to approval from NITI Aayog, Department of Investment and Public Asset Management (DIPAM) among others.
“The proposed WoS will focus and pursue IndianQil’s low carbon and green energy business to meet the operational requirements of the net zero target and beyond," the filing said.
Addressing the IndianOil Green Energy Summit on Wednesday, Shrikant Madhav Vaidya, CMD of IndianOil said: “While we look to diversify our existing Petroleum and Gas product offerings, we will consolidate our green assets under one vertical."
He said that in line with its vision for turing net zero by 2046, the energy major aims to build a portfolio of 3 GW renewable energy and 0.6 million metric tonnes biofuels by 2025 and 200 GW renewable energy, 7 MMT biofuels and 9 MMT biogas by 2050.
“While IndianOil is committed to energising India’s exponentially rising energy needs, we are also determined to be the flagbearer of India’s green energy transition. We are thus scaling up our green endeavours with a definitive focus," he said.
IndianOil’s renewable energy portfolio currently stands at 239 MW, which is being expanded through new wind, solar, hydel and pumped hydro projects.
He added that the company is also collaborating with NTPC to augment its renewable energy capacity by around 2.8 GW.
“There is also greening of the supply chain through solarising 20,705 retail outlets with an installed capacity of 121 MW. Initiatives in EVs are being intensified by setting up 4700 charging stations and 66 battery swapping stations. A collaboration has been entered with Phinergy, an Israeli start-up company specialising in hybrid lithium-ion and aluminium-air battery systems, to form IOC Phinergy Private Limited. Various other battery chemistries are also being explored."
He also mentioned that collaboration with ReNew Power Private Limited (ReNew) and Larson & Toubro Limited (L&T) for green hydrogen business. A 7 KTPA Green Hydrogen capacity is under development at the Panipat refinery. A demonstration facility for hydrogen dispensing at Gujarat refinery has been installed using the hydrogen from the refinery unit. IndianOil R&D Centre is also fully oriented towards developing low-carbon technologies and products.