BPCL Announces Joint Ventures for Green Hydrogen, Biogas Projects

13 Sep 2024 , 10:17 AM

Bharat Petroleum Corporation Ltd (BPCL) announced on September 12 that its board approved two joint ventures to support the company’s energy transition and net-zero initiatives.

BPCL will form a 50:50 joint venture with Sembcorp Green Hydrogen India Private Ltd (SGHIPL) to develop renewable energy and green hydrogen projects across India. BPCL also approved a joint venture with GPS Renewables Private Ltd to establish compressed biogas (CBG) plants across India.

This collaboration will focus on producing, operating, and selling renewable energy, green hydrogen, and its derivatives. The agreement will be finalized once regulatory approvals are received from NITI Aayog and DIPAM.

The 50:50 partnership with GPS Renewables will help construct, operate, and maintain CBG plants, supporting BPCL’s compliance with CBG blending mandates. These ventures align with BPCL’s strategy to diversify its operations and contribute to India’s energy transition.

At the time of writing, shares of Bharat Petroleum Corporation Ltd (BPCL) are trading at ₹347.25 which is a 0.86% gain than the previous close. Bharat Petroleum Corporation Ltd (BPCL) has gained a total of 95% in the last one year, and almost 53% since the beginning of the year.

The capital considerations and authorized share capital for both joint ventures will be determined once the definitive agreements are signed.

BPCL reported a net profit of ₹3,010 Crore for the April-June period, lower than the CNBC-TV18 poll estimate of ₹3,310 Crore. On a sequential basis, BPCL’s net profit declined by 28%, despite a lower tax outgo of ₹1,017 Crore compared to ₹1,419 Crore in the previous quarter. Depreciation remained steady at ₹1,680 Crore.