Oil India’s Green Energy Ambitions Soar with an Investment of ₹8000 crore in 2G Ethanol
Oil India Limited, a state-run Maharatna firm, plans to invest over 8,000 crore in the expanding second-generation (2G) ethanol sector, which will significantly improve India’s renewable energy environment. With a goal of achieving net-zero emissions by 2040, Oil India’s ambitious investment is a part of a larger commitment to green energy. These substantial financial infusions will go into renewable energy projects including solar energy, compressed biogas (CBG), green hydrogen, and 2G ethanol.
Ranjit Rath, Chairman and Managing Director (CMD) of Oil India, emphasized the business’ all-encompassing strategy by saying, “In the 2G ethanol space, we are looking at an investment of about 8,000 crore.” The corporation has also been given the go-ahead to build about 25 CBG facilities, further solidifying its dedication to cleaner energy alternatives.
With plans to build a 640 megawatt (MW) solar power plant in Assam and a 150 MW solar plant in Himachal Pradesh, the company’s green energy ambition includes the solar power industry. This would consolidate its contribution to India’s expanding solar energy sector.
Numaligarh Refinery Ltd (NRL), a subsidiary of Oil India, is likewise actively working to diversify the business’s holdings. With an investment of $7,200 crore, NRL is developing a petrochemical factory. A 360 KTPA (kilo tonne per annum) polypropylene unit is now being built, according to Rath, who provided information about this project. For that, an investment of roughly 7,200 crore has been planned.
The company’s ambitious green energy initiatives are in line with its overarching objective of being an organization with “Net-Zero” emissions by 2040. Adopting cleaner energy sources, funding renewable energy initiatives, and utilizing cutting-edge technologies to reduce greenhouse gas emissions are all part of this change. Over the ensuing decades, Oil India has allocated an estimated 25,000 crore for these projects.
With its highest-ever gas output of 3.18 billion cubic meters (BCM) and a 5.5% year-over-year increase in crude oil production to reach 3.18 million metric tonnes (MMT), Oil India reached key milestones in FY23. Financially, the business achieved its highest-ever standalone net profit of 26,810 crore, representing a stunning gain of 75.20% over the previous year. Additionally, the combined net profit increased by 46.66% year over year to its highest level ever at 29,854 crore.
Rath also described the company’s plans to expand its gas portfolio and voiced confidence in the new gas price formula, which is based on crude oil prices.
Oil India is positioned to play a vital part in India’s transformation to a greener and more sustainable energy future as it continues to increase its footprint in renewable energy and commit to net-zero emissions.
