Oil India to Invest Rs 8,000 Crore in 2G Ethanol, Part of Rs 25,000 Crore Sustainability Drive

15 Sep 2023 , 12:10 PM

Oil India plans to invest approximately Rs 8,000 crore in the 2G (second generation) ethanol sector, aligning with India’s biofuel initiatives and the Global Biofuels Alliance’s recent launch. This investment will be a collaborative effort involving Oil India and its subsidiary, Numaligarh Refinery Ltd (NRL), which will establish the ethanol plant.

Oil India’s broader investment strategy, amounting to Rs 25,000 crore, is geared towards achieving a net-zero emissions status by 2040. This encompasses various areas, including 2G ethanol, green hydrogen, compressed biogas (CBG), and solar power.

Specifically, the Rs 8,000 crore investment in the 2G ethanol space represents a significant commitment to cleaner and sustainable energy sources. Oil India also aims to establish approximately 25 CBG plants as part of its broader sustainable energy initiatives.

In the solar power sector, Oil India plans to set up a 640-MW solar power plant in Assam and a 150-MW solar plant in Himachal Pradesh, contributing to its clean energy objectives. Additionally, subsidiary NRL is in the process of developing a petrochemical plant with an investment of Rs 7,200 crore, emphasizing its diversification efforts.

Oil India’s ambitious target is to transform into a ‘Net-Zero’ emission company by 2040 through various strategies, including cleaner energy adoption, renewable energy projects, and advanced emissions-reduction technologies. In FY23, Oil India achieved record-high gas production of 3.18 BCM and a 5.5% YoY growth in crude oil production, reaching 3.18 million metric tonnes.

The company’s robust financial performance in FY23 included its highest-ever standalone net profit of Rs 26,810 crore, marking a 75.20% YoY growth, and a consolidated net profit of Rs 29,854 crore, reflecting a 46.66% YoY increase.

Oil India aims to enhance its gas portfolio and has confidence in the new gas price formula linked to crude oil prices, while also focusing on increasing crude oil production through exploration and expedited production efforts in line with ‘Mission 4+’.

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