To future-proof its operations, BPCL is investing heavily in green energy, petrochemicals, and refining, with plans to meet growing energy demands and achieve net-zero emissions by 2040
Bharat Petroleum Corporation Limited (BPCL) has unveiled plans to invest Rs 1.7 lakh crore over the next five years in expanding its core refining and marketing businesses while venturing into green energy and petrochemicals. This significant investment is part of BPCL's 'Project Aspire', a strategic framework designed to nurture its existing operations and explore future growth avenues.
BPCL Chairman G. Krishnakumar outlined the company's vision, stating, "Our mid-term strategy is on a continuum. While we remain committed to growing our core businesses, which include refining and marketing petroleum products and upstream operations, we are equally focused on our big bets comprising petrochemicals, gas, green energy, non-fuel retail, and digital. Project Aspire, with a planned capital expenditure of Rs 1.7 lakh crore over five years, will enable us to create long-term value for our stakeholders while preserving our planet for future generations."
BPCL currently controls approximately 25 percent of India's fuel retailing network and 14 percent of the country's oil refining capacity. The company is now looking to expand into new markets while bolstering its existing businesses. According to BPCL's latest annual report, 'Project Aspire' is the first phase of the company's long-term aspirational journey, focusing on 'Nurturing the Core' and 'Investing in Future Big Bets'. Additionally, BPCL has committed to achieving net-zero carbon emissions from its operations by 2040, a goal that will require phased capital investments of around Rs 1 lakh crore.
Krishnakumar emphasised BPCL's commitment to growth, noting that India's expanding economy is expected to drive a 4-5 percent annual increase in demand for energy and petroleum products, alongside a 7-8 percent annual growth in demand for major petrochemical products. In line with this, BPCL is implementing new petrochemical projects at two of its three oil refineries. The Bina refinery in Madhya Pradesh is currently developing a Rs 49,000 crore ethylene cracker project, with plans to boost its annual oil refining capacity from 7.8 million tonnes to 11 million tonnes by 2029. Similarly, a polypropylene plant is set to become operational at the Kochi refinery in Kerala by 2027.
The company is also exploring options for additional integrated refining and petrochemical capacities within the next 5-7 years. Although Krishnakumar did not disclose specific investments or project locations, Andhra Pradesh is being speculated as a potential site, following the electoral victory of Prime Minister Narendra Modi’s BJP and the regional TDP in the state. The TDP has been advocating for a refinery-cum-petrochemical complex, promised as part of the state’s reorganisation over a decade ago.
In the realm of renewable energy, BPCL is targeting the development of 2 gigawatts (GW) of renewable energy capacity by 2025 and 10 GW by 2035. The company is investing nearly Rs 1,000 crore in two 50 MW captive wind power plants in Maharashtra and Madhya Pradesh, which will support its Mumbai and Bina refineries. Additionally, BPCL has established over 3,000 electric vehicle (EV) charging stations, including fast chargers for cars and two-wheelers, across 120 highway corridors. The company aims to install 4-wheeler fast chargers at approximately 6,000 retail outlets along 400 highway corridors over the next five years.
On the biofuels front, BPCL offers petrol with a 20 percent ethanol blend at 4,279 of its over 22,000 petrol pumps. The company is also developing compressed biogas plants that convert municipal waste into gas suitable for use as compressed natural gas (CNG) in vehicles.
BPCL's efforts in this area, along with the upcoming commissioning of a bio-ethanol refinery, position the company as a key player in India's transition to a greener fuel mix.
Looking ahead, BPCL is aligning itself with India's vision of becoming a $30 trillion developed economy by 2047, as part of the 'Viksit Bharat @2047' initiative. This ambitious goal will necessitate a nearly fourfold increase in primary energy demand, with India expected to account for roughly 12 percent of global energy consumption by 2047. The country aims to achieve net-zero emissions by 2070, with BPCL aspiring to meet 7-10 percent of India’s primary energy demand by 2047.