In a joint venture with NPTC, IndianOil plans to invest Rs 1,660 crore

16 Oct 2023 , 11:12 AM

The largest oil company in the country, Indian Oil Corporation, will contribute Rs 1,660.15 crore as equity to a recently formed joint venture for the construction of renewable power plants with energy giant NTPC Ltd.

In June, IOC and NTPC established IndianOil NTPC Green Energy Pvt Ltd, a 50:50 joint venture business, to establish renewable energy projects and supply the oil company’s refineries with continuous power.

IOC stated in a stock exchange filing that its Board ‘has accorded approval to the investment plan of the joint venture company for setting up of renewable energy power plants and approved the equity contribution of up to Rs 1,660.15 crore towards Indian Oil’s share of 50% in the equity share capital of the JVC.’ This approval came during a meeting on October 13.

On June 2, IOC and NTPC Green Energy Limited, a fully owned subsidiary of NTPC Limited, incorporated their joint venture company (JVC). ‘IndianOil NTPC Green Energy Private Limited will develop renewable energy-based power projects (viz. solar PV, wind, any other renewable energy, energy storage, or any combination of the same), to meet the round-the-clock (RTC) power requirements of new projects of Indian Oil Refineries,’ the company had stated at the time. To meet the energy needs of IOC refineries, it is intended to produce renewable power with a minimum capacity of 650 MW around-the-clock.

In order to aggressively pursue its green energy business, NTPC has set an ambitious goal of creating a renewable power portfolio of 60 GW over the next ten years through its wholly-owned subsidiary, NGEL. For improved synergy, IOC had already stated in March that it will combine all of its green assets under one roof. By 2025, it wants to have 3 GW of renewable energy and 0.6 million tonnes of biofuels in its portfolio. By 2030, there will be 35 GW of renewable energy in the portfolio, and by 2050, there will be 200 GW.

By 2050, the ability to create biofuels from agricultural and municipal waste as well as biogas will be increased to 7 million tonnes and 9 million tonnes, respectively. It presently has 239 MW of renewable energy in its portfolio, which is being increased through new wind, solar, hydro, and pumped hydro projects. It is working with NTPC to add about 2.8 GW of additional renewable energy capacity. Additionally, IOC is solarizing 20,705 petrol stations with a 121 MW installed capacity.

By constructing 4,700 charging stations and 66 battery switching stations, EV initiatives are being stepped up. It has worked with Israeli startup Phinergy on a joint venture for batteries. IOC has also made a significant impact on the nation’s emerging green hydrogen ecology. For its green hydrogen business, the company has a solidified partnership with ReNew Power Private Limited (ReNew) and Larsen & Toubro Limited (L&T). The Panipat refinery is developing a 7 kilotons per year green hydrogen capability.

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