BPCL Plans ₹1.7 Lakh Crore Investment to Expand Core Business and Enter New Energy Sector

State-owned Bharat Petroleum Corporation Limited (BPCL) plans to invest ₹1.7 lakh crore over the next five years to enhance its core oil refining and fuel marketing operations while pursuing new ventures in petrochemicals and green energy, according to Chairman G. Krishnakumar.

BPCL, which currently controls about 14% of India's oil refining capacity and a quarter of the fuel retail network, aims to bolster these sectors while exploring new opportunities. The company's strategy is outlined in 'Project Aspire,' a five-year plan focusing on "Nurturing the Core" and "Investing in Future Big Bets."

Project Aspire, with an estimated capital expenditure of ₹1.7 trillion, seeks to create long-term value for stakeholders and support BPCL's commitment to environmental sustainability. The company's goal includes achieving net-zero carbon emissions by 2040, supported by a comprehensive roadmap involving renewable power, green hydrogen, and carbon capture technologies.

BPCL's investments will also focus on expanding its refining capabilities and petrochemical production. The firm is developing two major petrochemical projects: a ₹49,000 crore ethylene cracker at the Bina refinery in Madhya Pradesh, set to increase refining capacity to 11 million tonnes annually by 2029, and a polypropylene project at the Kochi refinery in Kerala by 2027. Additionally, BPCL is considering setting up further refining and petrochemical capacities in India, with Andhra Pradesh speculated as a potential location.

In line with its energy transition goals, BPCL plans to build 2 gigawatts (GW) of renewable energy capacity by 2025 and 10 GW by 2035. The company is investing nearly ₹1,000 crore in two wind power plants and around ₹300 crore in a solar project in Uttar Pradesh. BPCL is also advancing green hydrogen initiatives, including a 5 MW electrolyser plant and a green hydrogen refuelling station.

The company is enhancing its electric mobility infrastructure with over 3,000 charging stations and plans to expand to 6,000 fast chargers at retail outlets across major highways. BPCL is also developing biofuels and compressed biogas plants to support cleaner fuel adoption.

Krishnakumar emphasized BPCL's commitment to maintaining high safety standards and operational excellence while contributing to India's energy goals. He noted that India's energy sector is poised for significant growth, with ambitious targets for renewable energy and reduced carbon emissions by 2047.

"BPCL aims to meet 7-10% of the nation's primary energy demand by 2047, aligning with India's vision of becoming a $30 trillion economy and playing a crucial role in the global energy market," Krishnakumar said.

HBL