State-owned Oil India Limited (OIL) has ambitious plans to invest Rs. 25,000 crore (US$ 3.01 billion) in clean energy projects, with the goal of achieving net-zero carbon emissions by 2040, as revealed by Chairman Mr. Ranjit Rath. OIL’s strategy to reach net-zero emissions involves several key initiatives, including reducing gas flaring, tapping into stranded gas resources, establishing renewable energy production capacity, setting up green hydrogen plants, and developing biogas and ethanol facilities.
One significant aspect of OIL’s plan is the construction of an 80-kilometer pipeline to transport natural gas from fields in Arunachal Pradesh to Assam. This pipeline aims to replace polluting liquid fuels in transportation and industrial processes.
The comprehensive Rs. 25,000 crore (US$ 3.01 billion) project encompasses various activities, such as green hydrogen production, compressed biogas plants, renewable energy portfolios, geothermal energy projects, zero flaring initiatives, Carbon Capture, Utilization, and Storage (CCUS) ventures, and 2G ethanol plants.
OIL is committed to investing over Rs. 9,000 crore (US$ 1.08 billion) in 1,800 megawatts (MW) of solar and onshore wind energy projects, alongside Rs. 3,000 crore (US$ 361.2 million) in green hydrogen production. Additionally, Rs. 1,000 crore (US$ 120.4 million) will be allocated for CCUS initiatives. The company has already solidified plans for 640 MW of solar projects in Assam and an additional 150 MW in Himachal Pradesh.
OIL is now part of a cohort of publicly traded companies making substantial investments to support India’s journey to net-zero emissions by 2070. Indian Oil Corporation (IOC), the nation’s largest oil company, aims for net-zero by 2046, while Oil and Natural Gas Corporation (ONGC), a prominent oil and gas giant, has committed Rs. 2 lakh crore (US$ 24.08 billion) to achieve net-zero by 2038.
Other companies like Hindustan Petroleum Corporation Limited (HPCL) aspire to reach net-zero carbon emissions by 2046, while Bharat Petroleum Corporation Limited (BPCL) and Gas Authority India Limited (GAIL) share the 2040 target.
Mr. Ranjit Rath has underlined OIL’s mission of boosting crude oil production to over 4 million tonnes and gas output to 5 billion cubic meters. In 2022-23, the company produced 3.2 million tonnes of crude. The plan is to reach 3.8 million tonnes this year and achieve the 4+ mission by 2024-25. Achieving this goal will require a combination of increased exploration for new reserves and technological advancements to enhance output from existing fields.
