New Delhi: In a bold move toward combating climate change, Oil India Ltd (OIL), a prominent state-owned energy company, has unveiled ambitious plans to achieve net-zero carbon emissions by 2040. This commitment was confirmed by the company’s Chairman, Ranjit Rath on Thursday here in the national capital. OIL’s vision for a greener future includes substantial investments in various clean energy projects, renewable electricity generation, and innovative technologies.
To kickstart its transition toward sustainability, Oil India Ltd intends to invest a staggering Rs. 25,000 crore in clean energy initiatives. These projects encompass the establishment of renewable electricity generation capacity, reducing gas flaring, constructing green hydrogen plants, developing biogas and ethanol facilities, and commercialising stranded gas resources. This integrated move demonstrates OIL’s dedication to making a significant impact on India’s energy landscape, which includes, the Maharatna CPSE plans to allocate around Rs 9,000 crore for the development of 1,800 megawatts of solar and onshore wind energy projects, furthering India’s renewable energy potential. A substantial Rs 3,000 crore investment will be directed towards a green hydrogen project, a pivotal step toward clean energy adoption. An investment of Rs 1,000 crore will support CCUS projects, aiding in the reduction of carbon emissions from industrial processes.
Besides, in a bid to expedite its net-zero commitment, OIL is exploring ways to advance the target to 2038. This proactive approach underscores the urgency of addressing climate change. OIL is further planning to establish 640 megawatts of solar projects in Assam and an additional 150 megawatts in Himachal Pradesh, contributing to the nation’s clean energy portfolio.
The company aims to lay an 80-kilometer pipeline, connecting natural gas fields in Arunachal Pradesh to Assam. This strategic move will help replace polluting liquid fuels in transportation and industries. OIL also intends to convert some of its existing crude oil pipelines to facilitate the transportation of natural gas, demonstrating adaptability in aligning with clean energy goals.
Oil India Ltd’s commitment to sustainability mirrors a broader trend in the Indian energy sector. Other state-owned entities, including Indian Oil Corporation (IOC), ONGC, Bharat Petroleum Corporation Ltd (BPCL), and GAIL (India) Ltd, have also set their sights on achieving net-zero carbon emissions. Each has articulated unique strategies and target dates ranging from 2038 to 2046.
Chairman Ranjit Rath emphasised the company’s growth ambitions, stating, “We produced 3.2 million tonnes of crude in 2022-23 and have set an aspiration target of reaching 3.8 million tonnes this year. By 2024-25, we plan to achieve the 4+ mission.” This expansion will involve increased exploration efforts and the deployment of advanced technologies to maximise output from existing oil fields.
In terms of financial commitment, OIL has allocated a capital expenditure of Rs. 7,500 crore for the current fiscal year, a significant increase from the previous year’s Rs. 5,500 crore.
Rath reiterated OIL’s determination, saying, “We have set for ourselves an ambitious target of transforming into a ‘net-zero’ emission company by 2040 through a range of initiatives. Approximately Rs. 25,000 crores are envisaged to be invested by 2040 in this endeavour.”
In addition, OIL is exploring opportunities in green hydrogen and compressed biogas production through its subsidiary, Numaligarh Refinery Ltd. The company is also actively seeking ways to recover dividend income from its Russian assets, navigating the complex process of repatriating funds.
Despite the challenges posed by the situation in Russia, Chairman Ranjit Rath expressed confidence, stating, “Otherwise, it is safely deposited in an SBI bank in Moscow. We are not concerned about repatriation; for us, it’s a temporary phenomenon. Otherwise, it is yielding us dividends, which are 80 per cent plus now, so we are okay with that.”
Oil India Ltd’s visionary plans underscore the energy industry’s commitment to sustainable practices, positioning India as a leader in the global fight against climate change.