Oil India Limited (OIL), the state-owned energy giant, has unveiled an ambitious plan to invest Rs 25,000 crore in clean energy projects as part of its commitment to achieving net zero carbon emissions by 2040. The announcement was made by OIL Chairman Ranjit Rath at a press conference on Saturday.
The comprehensive net zero strategy outlined by Rath includes a multifaceted approach aimed at reducing greenhouse gas emissions. Key components of the plan involve cutting down gas flaring, commercializing stranded gas, and significantly expanding renewable energy capacities. Specifically, OIL will focus on setting up renewable electricity generation facilities, establishing green hydrogen plants, and constructing biogas and ethanol plants.
Rath emphasized that achieving the net zero target involves a diverse range of activities. “Achieving a net zero target involves a bouquet of activities,” he stated. This extensive investment in clean energy infrastructure is designed to complement OIL’s target of increasing crude oil and natural gas production to 9 million tonnes of oil and oil equivalent gas by the fiscal year 2025-26, up from 6.5 million tonnes in the fiscal year ending March 31, 2024.
In addition to its clean energy investments, OIL plans to enhance its infrastructure to support its broader goals. A major initiative includes the construction of an 80-kilometer pipeline to transport natural gas from fields in Arunachal Pradesh to Assam. This pipeline aims to replace polluting liquid fuels in transportation and industrial applications, thereby supporting cleaner energy alternatives.
Rath also highlighted OIL’s commitment to expanding its renewable energy footprint. The company has already finalized plans for solar projects totaling 640 MW in Assam and an additional 150 MW in Himachal Pradesh.
OIL’s move is part of a larger trend among state-owned Indian oil and gas companies committing substantial resources towards achieving net zero emissions. Indian Oil Corporation (IOC), the largest oil firm in India, is targeting net zero by 2046. Oil and Natural Gas Corporation (ONGC) has announced a Rs 2 lakh crore investment to achieve net zero by 2038. Bharat Petroleum Corporation Ltd (BPCL) and gas utility GAIL (India) Ltd are also aiming for 2040, while Hindustan Petroleum Corporation Ltd (HPCL) targets 2046 for its net zero goals.
In line with its production goals, OIL is intensifying its exploration and drilling activities. The company has plans to drill over 75 wells this year, up from 61 wells drilled last year and 45 the year before. This increase in drilling is expected to counteract the 12 percent decline in production experienced in mature fields and help in tapping new reservoirs. Advanced technologies are also being employed to enhance output from existing fields.
Additionally, Rath provided an update on the expansion of the Numaligarh refinery in Assam. The refinery’s capacity is set to increase from 3 million tonnes per annum to 9 million tonnes by December 2025, with the expansion estimated to cost Rs 28,000 crore.
This extensive investment underscores OIL’s strategic commitment to balancing growth in fossil fuel production with a significant push towards sustainable and environmentally friendly energy solutions.
