New Delhi: Oil India Ltd (OIL) is set to launch a new subsidiary, OIL Green Energy, to oversee its growing portfolio of green and alternative energy projects. The company plans to invest ₹25,000 crore in these initiatives by 2040, marking a significant step in its strategy to transition to sustainable energy and diversify its operations.

The Ministry of Petroleum and Natural Gas has stated that OIL has been actively pursuing low-carbon and green energy initiatives since 2012. The newly established OIL Green Energy will manage projects in biofuels, green hydrogen, renewable energy, carbon capture utilisation and storage (CCUS), methanol, and geothermal energy, supporting the country’s efforts towards decarbonisation and energy transition.

OIL currently has a renewable energy capacity of 188.1 MW, with 174.1 MW generated from wind energy and 14 MW from solar installations in Rajasthan, Madhya Pradesh, Gujarat, and Assam. These projects have involved an investment of ₹1,230.73 crore and have generated ₹870 crore in revenue until FY22.

The company is spearheading several notable initiatives, including India’s first Anion Exchange Membrane technology-based green hydrogen plant at its Jorhat facility in Assam. Through its start-up programme, SNEH, OIL has also developed the country’s first hydrogen fuel cell electric vehicle bus. This zero-emission bus, equipped with a 60 KW PEM fuel cell engine, was showcased by Prime Minister Narendra Modi during India Energy Week 2023.

OIL is further advancing its green energy commitment by establishing 25 compressed biogas plants across the country. In its FY24 annual report, the company reaffirmed its ₹25,000 crore investment plan and its intent to develop alternative energy sources through the new subsidiary. 

BI Bureau