Oil India Ltd. (OIL) has unveiled plans to create a fully owned subsidiary, OIL Green Energy, to manage its green and alternative energy projects.
The move is part of the Maharatna company’s strategy to diversify its energy portfolio and accelerate the shift toward sustainable energy.
Investment Plans for Green and Alternative Energy
OIL aims to invest ₹25,000 crore in green energy initiatives by 2040.
The investment is part of a broader effort to reduce reliance on fossil fuels and enhance the company’s energy mix.
The company has set ambitious targets for non-fossil fuel energy, which it plans to increase from 5-7% of its total energy mix by 2030 to 12-15% by 2040.
By 2040, OIL expects its green and alternative energy capacity to reach 3.5-4 million tonnes of oil equivalent (MTOE).
Focus on Low-Carbon and Green Energy Solutions
Since 2012, OIL has been progressively diversifying into low-carbon and green energy.
The new subsidiary, OIL Green Energy, will concentrate on several key areas: biofuels, green hydrogen, renewable energy, carbon capture utilization and storage (CCUS), methanol, geothermal energy, and other initiatives that support decarbonization and energy transition.
Current Renewable Energy Capacity and Achievements
OIL currently boasts an installed renewable energy capacity of 188.1 MW.
This includes 174.1 MW from wind energy and 14 MW from solar projects spread across Rajasthan, Madhya Pradesh, Gujarat, and Assam.
The renewable energy projects have seen an investment of ₹1,230.73 crore and generated ₹870 crore in revenue until FY22.
Landmark Green Energy Projects
OIL is at the forefront of several ground-breaking green energy projects.
The company is spearheading India’s first Anion Exchange Membrane (AEM) technology-based green hydrogen plant. It is located at the company’s Jorhat facility in Assam.
Additionally, OIL is developing India’s first hydrogen fuel cell electric vehicle (FCEV) bus as part of its start-up initiative, SNEH.
OIL is establishing twenty-five compressed biogas (CBG) plants across India. This reinforces its commitment to advancing green energy solutions.
Reaffirming Commitment to a Sustainable Future
In its FY24 annual report, OIL reiterated its ₹25,000 crore investment plan. This signals a clear commitment to becoming a diversified and integrated energy company.
As reported by newsonprojects.com, the report highlighted the company’s dedication to managing alternative energy development. This is being done through the newly formed subsidiary, OIL Green Energy.
