BPCL to invest ₹1.70 lakh crore in expansion, eyes major growth in green energy and petrochemicals

• Published 3 months ago
• By SuperAdmin

BPCL aims to enhance its renewable energy capacity to 2 GW by 2025 and 10 GW by 2035, aligning with India’s broader energy transition goals.

New Delhi: Bharat Petroleum Corporation Limited (BPCL) has announced plans to invest ₹1.70 lakh crore over the next five years, following a record profit of ₹26,673.50 crore for the fiscal year 2023-24. This profit, the highest in the company’s history, accompanies its highest-ever throughput of 39.93 million metric tonnes (MMT) and market sales of 51.04 MMT.

The proposed investment under "Project Aspire" focuses on expanding BPCL’s core businesses and venturing into future growth areas such as green energy and petrochemicals. BPCL aims to enhance its renewable energy capacity to 2 GW by 2025 and 10 GW by 2035, aligning with India’s broader energy transition goals.

"Our strong balance sheet, with zero net-debt at the standalone level, positions us to pursue these investments while maintaining financial stability," said G. Krishnakumar, Chairman and Managing Director, BPCL, during the company’s 71st Annual General Meeting.

In the petrochemical sector, BPCL is set to undertake two major projects at Bina and Kochi, with a combined investment of ₹54,000 crore. These projects are expected to increase the company’s petrochemical capacity by 2.4 MMT, addressing the growing demand in India’s economy.

BPCL’s refineries achieved a gross refining margin of $14.14 per barrel in 2023-24, the highest among PSU oil marketing companies (OMCs). This positions the company to benefit from the anticipated rise in energy demand, projected to grow by 4-5 Percent annually.

The company’s green energy plans include achieving net-zero emissions by 2040 for Scope 1 and Scope 2 emissions, which will require an estimated investment of ₹1 lakh crore. This investment will focus on renewable power, green hydrogen, and carbon capture, contributing to BPCL’s long-term sustainability goals.

BPCL is also advancing its digital initiatives with "Project Anubhav," aimed at enhancing customer engagement and operational efficiency. Additionally, the company plans to expand its city gas distribution (CGD) networks, with an additional ₹2,500 crore earmarked for this year’s developments.

Krishnakumar emphasized BPCL’s commitment to supporting India’s energy transition and economic growth. "We are committed to driving India’s energy future, ensuring sustainable development and energy security for the nation," he stated.