Indian Oil Corporation (IOC) has floated a new subsidiary under low-carbon, clean and green energy business as the nation's biggest oil refining and fuel marketing company pivots a transition plan to achieve net zero emissions from its operations by 2046.
In a stock exchange filing, Indian Oil Corporation said its board in its meeting held on March 14 "has accorded approval for the formation of a wholly-owned subsidiary in India, subject to the approval of NITI Aayog, DIPAM, etc, to operate in the domain of low carbon, new, clean and green energy businesses". "The proposed WoS will focus and pursue Indian Oil's low carbon and green energy business to meet the operational requirements of the net zero target and beyond," it added.
Indian Oil Corporation Chairman Shrikant Madhav Vaidya had last month said the company is remodelling its business with an increased focus on petrochemicals to hedge volatility in fuel business, while petrol pumps into energy outlets that offer EV charging points and battery swapping options.
Also, the company plans to set up green hydrogen plants at all its refineries as part of a Rs 2- lakh crore green transition plan to achieve net-zero emissions from its operations by 2046, he had said. The company intends to expand its refining capacity to 106.7 million tonnes per annum from 81.2 million tonnes as it sees India's oil demand climbing from 5.1 million barrels per day to 7-7.2 million bpd by 2030 and 9 million bpd by 2040.
This hydrogen is currently generated using fossil fuels, such as natural gas. Indian Oil Corporation plans to use electricity generated from renewable sources like solar to split water to produce green hydrogen.
