Government-owned oil marketing company Indian Oil Corporation (IOC) has said it would consolidate its current green assets under one umbrella to bolster the expansion across all verticals, including biofuels, renewables, green hydrogen, carbon offsets, and carbon capture, utilization, and storage.

Subsequently, the IOC board approved the formation of a wholly-owned subsidiary, subject to the approval of NITI Aayog and the finance ministry. The subsidiary would help the company expand its operations into low-carbon, new, clean, and green energy businesses.

“The proposed wholly-owned subsidiary will focus on and pursue Indian Oil’s low carbon and green energy business to meet the operational requirements of the net zero target and beyond,” IOC said in a BSE filing.

The petroleum refiner said that it plans to build a portfolio of 3 GW of renewable energy and 0.6 million metric tons (MMT) of biofuels by 2025.

The company said it would further build a portfolio of 35 GW renewable energy, 4 MMT biofuels, and 1 MMT biogas by 2030; and 200 GW renewable energy, 7 MMT biofuels, and 9 MMT biogas by 2050, to help India achieve carbon-neutrality.

At the Indian Oil Green Energy Summit, IOC Chairman S M Vaidya said the group would partner with investors and technology providers worldwide to scale its renewables expansion.

Vaidya said, “While IndianOil is committed to energizing India’s exponentially rising energy needs, we are also determined to be the flagbearer of India’s green energy transition. We are thus scaling up our green endeavors with a definitive focus, and going forward, we will consolidate our green assets under one umbrella for better synergy. Our ambitious green roadmap also involves forging effective collaborations to nurture commercial-scale green businesses.”

IndianOil has a renewable portfolio of 239 MW currently, which the company is expanding through new wind, solar, hydel, and pumped hydro projects. Last year, IOCL signed an agreement with NTPC to form a joint venture company to meet the power requirements of the former’s upcoming projects with renewable power.

Last year, Chennai Petroleum Corporation, an IOC group company, issued an expression of interest for the design, manufacturing, and commissioning of electrolyzers and related items for the production of green hydrogen at its refinery in Tamil Nadu.

In November 2021, IOC issued a global tender to develop green hydrogen generation facilities on a build, own, and operate basis at its refineries in Uttar Pradesh and Haryana.