BPCL plans ₹1.7 trillion investment to expand in new energy sector
Business: State-owned Bharat Petroleum Corporation Ltd (BPCL) chairman G Krishnakumar has said the company plans to invest Rs 1.7 trillion over the next five years to grow its core oil refining and fuel marketing business as well as ‘future big bets’ of petrochemicals and green energy. Bharat Petroleum Corporation Ltd (BPCL) currently has about 14 per cent of India’s oil refining capacity and nearly a quarter of the fuel retail network. It plans to grow these businesses by venturing into new areas. The company is now implementing the first phase of a multi-decade aspirational journey in the form of ‘Project Aspire’ – its five-year strategic framework that is based on two fundamental pillars – ‘nurturing the core’ and ‘investing in future big bets’, he said in the company’s latest annual report. “Our mid-term strategy remains consistent. While we are committed to growing our core businesses, including refining and marketing of petroleum products and upstream, we are also equally focused on our larger bets, including petrochemicals, gas, green energy, non-fuel retail and digital.
“Project Aspire, with planned capital expenditure of around Rs 1.70 trillion over five years, will enable us to create long-term value for our stakeholders, while preserving our planet for future generations,” he said. “A cornerstone of our long-term strategy, Project Aspire, with an investment of Rs 1.70 trillion, marks the initial phase of our multi-decade odyssey to shape the energy of tomorrow. This, coupled with our strong balance sheet, fuels our ambition to lead the energy transition.” The company is targeting net zero carbon emissions from its operations by 2040. “BPCL has laid out a net-zero roadmap, which includes renewable energy, green hydrogen, compressed biogas, carbon capture, utilisation and storage (CCUS), efficiency improvements and offset procurement. This will require a phased capital outlay of about Rs 1 trillion by 2040, and the company is prepared for it,” he said.
