Indian Oil Plans 5-6 GW Renewable Energy Projects in Green Expansion.

State-run Indian Oil Corporation (IOCL) announced plans to acquire 5-6 gigawatts (GW) of solar and wind power projects as part of its strategy to expand its green energy portfolio and achieve Net Zero carbon emissions by 2046.

“We have a target of adding 31 GW of renewable energy capacity by 2031 through a mix of organic growth, joint ventures (JVs), and mergers and acquisitions (M&As),” IOCL’s management stated during an investor call. Key executives present included Director (Finance) Anuj Jain, ED (Corporate Finance & Treasury) RVN Vishweshwar, CGM (Treasury) Pramod Jain, and GM (Treasury) Prabhat Himatsingka.

As of March 2024, IOCL’s renewable energy portfolio stands at 246.94 megawatts (MW), consisting of 167.60 MW of wind and 79.34 MW of solar photovoltaic (PV) capacity. In FY24, the company produced 401.50 million units (MU) of renewable energy, mitigating 3,68,980 tonnes of CO2 equivalent emissions.

The company outlined that 6-7 GW of its 31 GW target will be developed organically, while the majority will be achieved through joint ventures and partnerships. IOCL has already signed MoUs with several renewable energy firms and is engaged in active discussions for further expansion.

To accelerate its clean energy transition, IOCL established a wholly owned subsidiary, Terra Clean, in May 2024. Terra Clean aims to develop 1 GW of renewable energy capacity with an investment exceeding ₹5,000 crore, according to IOCL’s FY24 annual report. The company has already tendered 1 GW, with another 4 GW in progress. Additionally, IOCL’s joint venture with NTPC Green Energy Ltd. (NGEL) is advancing rapidly.

IOCL has committed over ₹2 lakh crore towards clean energy initiatives, aiming to achieve Net Zero operational emissions (Scope 1 & Scope 2) by 2046. By 2030, the company plans to build a green energy portfolio comprising 31 GW of renewables, 4 million tonnes (MT) of biofuels, and 1 MT of biogas, scaling up to 200 GW of renewables, 7 MT of biofuels, and 9 MT of biogas by 2050.

The company has also launched joint ventures to accelerate clean fuel adoption. GH4India, IOCL’s JV with L&T and ReNew Power, is focused on green hydrogen production. Additionally, IOCL plans to set up 30 compressed biogas (CBG) plants across India through JV partnerships.

Further strengthening its sustainable energy initiatives, IOCL has partnered with LanzaJet Inc. (USA) and Praj Industries to develop India’s first Sustainable Aviation Fuel (SAF) facilities, supporting the country’s transition to greener aviation fuels.

HBL