Will EVs scupper mega oil refinery expansion plans?
An ambitious projection by a government panel on electric vehicles over the next decade has made the oil refining industry, which has lined up billions of dollars to expand capacity, jittery.
From a paltry 0.02 per cent share in the transport sector in FY15, EVs are projected to reach 25 per cent by 2025 and 40 per cent by 2030, a working group mandated by the Petroleum Ministry concluded in a 2018 report after evaluating various scenarios, according to Vijay Sharma, Director (Refinery) in the Ministry.
On current trends, the report said India will require 472 mt of petro products by 2040. A transition to EVs and renewables will cut the requirement to 387 mt. But large-scale deployment of EVs and renewables will see the requirement dip drastically to 266 mt. This is expected to have a bearing on India’s refining capacity expansion plans.
“We have to take a call by 2020 on whether the planned refinery expansions will be required or not,” said Sharma. Details