Oil India ventures into green energy with new subsidiary launch – EQ
In Short : Oil India Limited has entered the green energy sector by launching a new subsidiary focused on renewable energy solutions. This strategic move aims to diversify its portfolio, emphasizing solar, wind, and green hydrogen projects. The initiative reflects Oil India’s commitment to sustainability and aligns with India’s vision of achieving a net-zero carbon future.
In Detail : Oil India (OIL) is taking a major step toward renewable energy by launching a wholly-owned subsidiary, OIL Green Energy, to lead its green and alternative energy initiatives. The company plans to invest Rs 25,000 crore by 2040 to expand its footprint in renewable energy and decarbonisation technologies, marking a significant shift from traditional energy sources.
Driving renewable transformation
The newly formed subsidiary will oversee biofuels, green hydrogen, carbon capture, methanol, and geothermal energy projects. By 2030, OIL aims to have 5-7 per cent of its energy from non-fossil fuel sources, rising to 12-15 per cent by 2040. This transition aligns with OIL’s vision of becoming a diversified energy company, as a parliamentary report details.
Currently, OIL has 188.1 MW of renewable energy capacity, including wind and solar projects in Rajasthan, Gujarat, and Assam, with Rs 1,230.73 crore invested so far. These initiatives generated Rs 870 crore in revenue until FY22.
Pioneering green hydrogen and biogas
In a milestone move, OIL has established India’s first anion exchange membrane (AEM) green hydrogen plant at its Jorhat facility in Assam. Further expanding its green energy portfolio, the company plans to set up 25 compressed biogas (CBG) plants across the country.
OIL’s bold strategy is poised to redefine its energy offerings, emphasising sustainability and innovation to meet evolving global energy demands.
