BPCL set to invest ₹25k crore to build a renewables portfolio

MUMBAI: Bharat Petroleum Corp. Ltd (BPCL) plans to spend ₹25,000 crore to build a renewable energy capacity of 10 gigawatts (GW) comprising a mix of solar, wind, small hydro and biomass, a senior company official said on Thursday.

“We have aspiration to reach 1 gigawatt of renewable energy in the short term (by 2025) and 10 gigawatt portfolio, say, by 2040 or earlier,” Amit Garg, executive director, renewable energy, BPCL said. The capacity being built in the short term would be to meet the state-run company’s captive demand, primarily from refineries and a proposed petrochemicals unit. BPCL could also sign power purchase agreements with buyers, the company said.

BPCL’S planned renewable energy portfolio would comprise solar (800 MW), wind (100 MW), small hydro (60 MW), and biomass (40 MW). Hydrogen could also be included in the portfolio at a later stage. The company has collaborated with Bhabha Atomic Research Centre (BARC) to scale up alkaline electrolyzer technology for green hydrogen production.

BPCL is scouting for suitable land to build power producing units in Uttar Pradesh for 80-100 MW; Bina, Madhya Pradesh (20 MW in Phase I), Rajasthan (250–500 MW) and Delhi of less than 5 MW.

“We are committed to Scope 1 and 2 and aim to be net zero by 2040. We are seeing a shift from fossil fuels to renewable energy. India would be among the countries that will continue to grow in fossil fuels, but we understand that it has to eventually move to clean energy,” the company said.

BPCL has committed to offset emissions from refining operations and from the energy it uses by 2040, referred to as Scope 1 and 2 emissions. Last month, BPCL tied up with Solar Energy Corporation of India, under the ministry of new and renewable energy, to build 10 GW of renewable capacity by 2040.