India’s Bharat Petroleum to Raise $2.19 Billion in green energy push
India is one of the world’s largest consumers and importers of oil, but it is also committed to achieving net zero-emissions goals by 2050.
To support this ambitious target, the country’s state-owned oil marketing companies are investing heavily in green energy projects such as renewable power, biofuels, hydrogen, and carbon capture.
One of these companies is Bharat Petroleum (BPCL), which announced on 28, June 2023, that it approved raising to 180 billion rupees ($2.19 billion) through an issue of equity shares on a rights basis.
The company said the funds will be used to achieve “energy transition, net zero, and energy security objectives”.
BPCL is not alone in this endeavor. The Indian government is set to inject multi-billion-dollar equity in its three big state refiners – BPCL, Indian Oil Corp. (IOC), and Hindustan Petroleum Corp. (HPCL)—in return for funding towards the firms’ energy transition projects. The three refiners together aim to invest 3.5–4 trillion rupees to achieve their net zero-emissions goals by 2040.
Some of the projects that these companies are working on include setting up solar power plants, producing ethanol from agricultural waste, developing hydrogen fuel cells, and capturing carbon dioxide from refineries. These initiatives are expected to reduce India’s dependence on imported oil, lower its greenhouse gas emissions, and create new jobs and opportunities in the green economy.
India’s oil marketing companies are paving the way for the rest of the country’s energy sector to embrace the green transition. By raising funds from the market and leveraging government support, they are demonstrating their commitment to aligning their business strategies with national and global climate goals. This is a positive sign for India’s energy future and its role in the global fight against climate change.