Indian Oil Corp (IOC.NS), the country’s largest refiner, expects to invest more than $25 billion to achieve net-zero emissions from its operations by 2046, according to its chairman S. M. Vaidya, who spoke at the company’s annual shareholders meeting on Thursday. India, one of the world’s largest greenhouse gas polluters, aims to achieve net-zero emissions by 2070.
“The company is embarking on a decarbonisation journey that will be crucial not only for the company’s destiny but also for the planet,” Vaidya explained.
“On the 99th year of India’s independence (2046), Indian Oil will be operationally independent of emissions,” he stated.
IOC intends to invest more than 2 trillion rupees ($25 billion) to reduce carbon dioxide emissions to around 0.7 billion metric tonnes per year by then.
According to Vaidya, IOC has developed a path to reach net zero Scope 1 and 2 emissions, which include emissions from its crude refining operations and energy usage.
He stated that the majority of IOC’s efforts will be directed toward decarbonizing its refineries and petrochemical complexes, which account for 97% of its operations.
IOC, along with its subsidiary Chennai Petroleum Corp (CHPC.NS), controls around one-third of India’s refining capacity of 5 million barrels per day (bpd).
Vaidya stated that IOC intends to grow its refining capacity by one-third to 2.14 million bpd by 2024/25, as well as increase the proportion of petrochemicals produced from each barrel of oil to 15% by 2030, in order to fulfill rising local demand and improve fuel exports.
To reduce emissions, IOC intends to fuel capacity expansion with renewable energy and is constructing green hydrogen plants at its Panipat and Mathura refineries.
Green hydrogen is expected to account for around 5% of IOC’s total hydrogen output by 2027-28, and 10% by 2029-30.
Vaidya further stated that IOC will have electric vehicle charging stations at 10,000 petrol stations within the next two years.