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Business News/ Industry / Energy/  IOC to invest 2 tn for net-zero carbon goal
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IOC to invest ₹2 tn for net-zero carbon goal

Company has multi-pronged strategy to achieve 2046 target, says CMD
  • With crude oil prices easing, the retail fuel prices might also reduce going ahead
  • Indian Oil Corp. chairman and managing director Shrikant Madhav Vaidya. .Premium
    Indian Oil Corp. chairman and managing director Shrikant Madhav Vaidya. .

    NEW DELHI : State-run Indian Oil Corp. Ltd (IOC) will invest 2 trillion in phases to achieve the net-zero carbon emission target by 2046, chairman and managing director Shrikant Madhav Vaidya said at the 63rd annual general meeting of the company.

    Vaidya said the company had made a detailed plan to implement measures for lower emissions and reach carbon neutrality. Speaking to reporters after the meeting, Vaidya indicated that with crude oil prices easing, the retail fuel prices might also reduce going ahead.

    “As we embark on the net-zero journey in the right earnest, we already have a well-crafted blueprint in place. It adopts a multipronged approach to take us gradually towards the net zero destination. We have envisaged that an investment of over 2 trillion will be required to achieve the target by 2046," Vaidya said, adding that the investment would be made in a phased manner.

    Noting that Indian Oil has been pursuing a plan to steer the country’s green energy transition, Vaidya said the company is working on several emission mitigation pathways such as green hydrogen, biofuels, renewables, carbon offsetting through ecosystem restoration and carbon capture utilization and storage (CCUS).

    The company plans to achieve two-thirds of the targeted emission reduction through energy efficiency, electrification and fuel replacement efforts, and the rest through CCUS, nature-based solutions and the purchase of carbon credits.

    Currently, IOC’s greenhouse gas emission, emanating from refining operations, stands at 21.5 million tonnes of carbon dioxide equivalent per annum. Out of the total emissions, 96% are on account of direct fuel burning for deriving energy from heat, steam, electricity and cooling that are part of operations. These constitute the Scope-1 emissions. The balance 4% is on account of sourcing electricity from the grid, which constitutes Scope-2 emissions.

    Current initiatives of the company for lowering emissions include audits of the efficiency of projects undertaken to reduce emissions and increasing the adoption of natural gas in refineries in place of liquid fuels.

    The oil refining and retailing major is also installing 5 kilo tonnes per annum (ktpa) and 2 ktpa units of green hydrogen at its refineries and is also involved in carbon capture, utilization and storage project along with Oil and Natural Gas Corp. Ltd.

    The company also made an investment of 577 crore for research and development in renewable energy, bio-energy, fuel cell, and greener products, among others. It is also pursuing partnerships with NTPC Ltd and Larsen and Toubro Ltd, among others.

    The company’s presentation showed its carbon emission would increase till 2030, with new capacities being added, and would then take a downtrend till reaching carbon neutrality by 2046.

    The company has excluded Scope-3 emissions, such as end use of products, emission from product distribution and retail network, from its net-zero target so far.

    On the stagnant petrol and diesel prices, despite volatility in global oil prices, Vaidya said it was a deliberate and calibrated decision not to increase retail fuel prices.

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    Rituraj Baruah
    Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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    Updated: 26 Aug 2022, 12:51 AM IST
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