Indian Oil Corporation (IOCL) is diversified, integrated energy company that has presence in nearly all streams of oil, gas, petrochemicals and alternative energy. ET reports that it plans to create a new company for its green business.
An industry official said that discussions are ongoing between foreign institutional investors and other stakeholders regarding formalizing a company structure. The new company will be created by next year. ET reports that IOCL has declined to comment.
IOCL is currently active and has impressive growth plans in biofuels, biogas and green hydrogen, EV mobility, EV batteries and other areas.
In August this year, company has announced that it is targeting to replace at least a tenth of its current fossil-fuel-based hydrogen at its refineries with carbon-free green hydrogen as part of a decarbonization drive. “The company is venturing into green hydrogen production and is targeting 5 per cent of hydrogen produced by it as green hydrogen by 2027-28 and 10 per cent by 2029-30,” it said.
In the annual report, IOC Chairman Shrikant Madhav Vaidya had said, “To meet the net-zero commitment, the Indian government has announced the Green Hydrogen and Ammonia Policy to boost green hydrogen production to 5 million tonne by 2030 and make India an export hub for this clean fuel.”
“Aligning with the national priority, Indian Oil will be producing green hydrogen in stages at the Mathura and Panipat refineries. As a first step, we will be implementing a 5 KTA (40 MW) green hydrogen plant at Mathura Refinery and a 2 KTA (16 MW) plant at Panipat Refinery,” he said.
The creation of a separate company will allow IOCL to get a better value for its renewable assets and also enable the company to attract strategic partners and easily monetise assets, something that it has not been able do in other segments,” said the second official aware of the development.
IOCL’s put-in capability of renewable vitality was 237.42 MW at March 2022. This included 167.6 MW wind and 69.82 MW solar capacity.
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