According to individuals informed of the initiative, Indian Oil Corporation Ltd. (IOCL), India's largest oil marketing corporation, intends to establish a new company to house its alternative energy operations. In addition to other areas, IOCL is actively active and has ambitious development ambitions in the fields of EV mobility, biofuel, biogas, green hydrogen, and EV batteries.
It is attempting to manufacture green hydrogen, and by 2027–2028, it plans to produce 5% and 10% of its hydrogen, respectively, as green hydrogen. The new business will launch the following year. An industry person with knowledge of the situation noted that formal structuring discussions with FIIs and other stakeholders are well along. IOCL opted not to comment on the situation.
The government-owned refiner and oil marketing firm is also engaged in the alternative energy sector to offer sustainable energy solutions including 2G ethanol from agricultural waste, fuel cell technology for cars, biodiesel synthesis from solar power, and energy storage devices.
The second person with knowledge of the development said, "A separate company will not only bring in greater valuation for IOCL's renewable assets but also allow the business to rope in strategic partners and monetize assets quickly, something it has not been able to achieve in other areas."
As of March 2022, IOCL has 237.42 MW of installed renewable energy capacity, including 69.82 MW of solar photovoltaic (PV) capacity and 167.6 MW of wind capacity.
The Finance Minister even said that India's strategy to switch to renewable energy has been derailed, necessitating the development of strategies to lessen coal dependence and revert to environmentally beneficial energy sources.More