IOC floats WoS for clean energy biz
New Delhi: Indian Oil Corporation (IOC) has floated a new subsidiary for low carbon, clean and green energy business as the nation’s biggest oil refining and fuel marketing company pivots a transition plan to achieve net zero emissions from its operations by 2046.
In a stock exchange filing, IOC said its board at the meeting held on March 14 “has accorded approval for the formation of a Wholly-owned Subsidiary (WoS) in India to operate in the domain of low carbon, new, clean and green energy businesses”.
The move is aimed at consolidating all existing green assets under one umbrella and rapidly expanding its footprint across sustainable energy avenues like biofuels, renewables, green hydrogen and carbon offsets (CCUS or carbon capture, utilisation and storage).
Alongside being the nation’s largest producer of traditional fuels like petrol, diesel and LPG, IOC is targeting 200 GW of renewble energy capacity by 2050 as well as 7 million tonnes of biofuels (oil produced from biomass) and 9 million tonnes of biogas (gas generated from decomposed plant and animal waste).
A company statement quoted IOC Chairman Shrikant Madhav Vaidya as saying that while the company is committed to energising India’s exponentially rising energy needs, it is also determined to be the flagbearer of the country’s green energy transition.
“We are thus scaling up our green endeavours with a definitive focus, and going forward, we will consolidate our green assets under one umbrella for better synergy,” he said.
IOC is remodelling its business with an increased focus on petrochemicals to hedge volatility in the fuel business while at the same time turning petrol pumps into energy outlets that offer EV charging points and battery swapping options besides conventional fuels as it looks to make itself future-ready.
Also, the company plans to set up green hydrogen plants at all its refineries as part of a Rs 2 lakh crore green transition plan to achieve net-zero emissions from its operations by 2046, he said.
