Wedoany.com Report-Dec 26, Oil India Ltd. (OIL) has announced plans to establish a wholly-owned subsidiary, OIL Green Energy, to oversee its green and alternative energy ventures. The state-run Maharatna company aims to invest ₹25,000 crore in these initiatives by 2040 as part of its broader strategy to diversify its energy portfolio and accelerate the transition to sustainable energy.
The company targets non-fossil fuel energy to contribute 5-7% of its total energy mix by 2030 and increase to 12-15% by 2040. This will correspond to achieving green and alternative energy capacity of 3.5-4 million tonnes of oil equivalent (MTOE) by 2040, according to the 21st report by the Committee on Public Undertakings presented in Parliament.
The Ministry of Petroleum and Natural Gas (MoPNG) informed the committee that OIL has been organically diversifying into low-carbon and green energy since 2012. OIL Green Energy will focus on biofuels, green hydrogen, renewable energy, carbon capture utilization and storage (CCUS), methanol, geothermal energy, and other initiatives supporting decarbonization and energy transition.
Currently, OIL has an installed renewable energy capacity of 188.1 MW, comprising 174.1 MW from wind energy and 14 MW from solar projects located across Rajasthan, Madhya Pradesh, Gujarat, and Assam. These renewable projects required an investment of ₹1,230.73 crore and generated ₹870 crore in revenue until FY22.
OIL is also spearheading several landmark projects, including India’s first Anion Exchange Membrane (AEM) technology-based green hydrogen plant at its Jorhat facility in Assam and the development of India’s first hydrogen fuel cell electric vehicle (FCEV) bus through its start-up program, SNEH. The zero-emission bus, featuring a 60 KW PEM fuel cell engine, was unveiled by Prime Minister Narendra Modi during India Energy Week 2023.
The company is also undertaking the establishment of 25 compressed biogas (CBG) plants across the country, further demonstrating its commitment to green energy innovation.
In its FY24 annual report, OIL reaffirmed its ₹25,000 crore investment plan, underscoring its intent to become a diversified and integrated energy player. “The company is dedicated to managing alternate energy development through its new subsidiary,” the report stated.
