Bharat Petroleum Corporation Ltd (BPCL) plans to invest over Rs 1 lakh crore over the next five years in raising petrochemical production capacity, gas business, clean fuel and augmenting marketing infrastructure, its chairman Arun Kumar Singh said on Monday.
Besides, the firm also plans to invest Rs 5,000 crore in renewable energy and another Rs 7,000 crore in biofuels. BPCL, which has a portfolio of 45 MW of renewable capacity, plans to increase it to 1,000 MW in the next five years, mostly through acquisitions while also invest in hydrogen.
The investment will help BPCL prepare for the future where conventional fuels and zero-carbon mobility in form of electric vehicles (EVs) and hydrogen will co-exist, while giving it the option to convert a greater degree of crude oil directly into high-value petrochemicals.
It is targeting to convert 7,000 out of over 19,000 petrol pumps into energy stations in the medium to long term by offering multiple fueling options like petrol, diesel, flexi fuels, EV charging facility, CNG and eventually hydrogen.
Singh said, the company is closely watching EV development in India and expects higher penetration in two- and three-wheelers. “It is a new business opportunity as well as a hedge against the risk of displacement of auto fuels.”
EV charging facilities have already been installed in 44 petrol pumps in major cities, and plan is to ramp it up to 1,000 by 2023-24.
Singh said the firm is looking to have both solar and wind power generation capacities and would look to convert electricity thus generated into green hydrogen — the cleanest form of hydrogen.
This would “benefit the company in various ways – diversification, offsetting GHG emissions arising from fossil fuel portfolio. Renewable power can also help in enabling EVs and production of green hydrogen,” he said.