Indian Oil Unveils Strategy to Expand Beyond Petroleum Products

22 Jul 2024 , 12:35 PM

In an effort to diversify its energy offerings, Indian Oil Corp plans to triple its natural gas sales and increase renewable energy capacity to 31 GW by 2030. In addition, the company plans to create 5 GWh of lithium-ion battery manufacturing capacity by 2031.

The biggest oil refiner and retailer in the nation, Indian Oil, has been investing in petrochemicals and natural gas for years in an effort to strengthen its non-oil operations. The government-owned corporation is expanding its line of business to include renewable energy and batteries as the worldwide battle against climate change heats up.

Under a strategic partnership, Indian Oil and Panasonic Energy of Japan will investigate the possibility of producing lithium-ion battery cells in India.

The company’s FY24 annual report stated, “With a vision to propel ‘Make in India’ for the world, the JV plans to establish a one GWh capacity factory by 2027, with an ambitious expansion to 5 GWh by 2031,” according to chairman Shrikant Madhav Vaidya. “This collaboration aims to position India as a global hub for advanced battery technology, supporting the nation’s transition to sustainable energy and transportation solutions.”

To capitalize on its vast network of petroleum retail outlets, Indian Oil is also investing in battery swapping facilities and adding charging stations for electric vehicles.

“We are betting big on the promising pathway of battery swapping solutions, particularly for the two and three-wheeler segment, with plans to expand this avenue for heavy-duty vehicle applications,” Vaidya stated. “This approach envisions to be a game changer for the sector.” By 2030, Indian Oil wants to have built 31 GW of renewable energy capacity, mostly through wind and solar projects, according to Vaidya.

However, the corporation intends to keep growing its main fossil fuel business since it believes that over the next ten years, domestic oil demand will rise. With support from refinery expansions at Barauni (6 to 9 MMTPA), Panipat (15 to 25 MMTPA), and Vadodara (13.7 to 18 MMTPA), it is expected to add 17 million tonnes per annum (MTPA) of capacity.

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