IndianOil To Invest Rs 1,660 Crore In JV With NTPC To Set Up Renewable Energy Projects

Earlier this year, both IOC and NTPC formed a 50:50 JV company, namely the IndianOil NTPC Green Energy Pvt Ltd, to set up renewable energy projects to cater to the increasing power demand.

Currently, IOC’s renewable energy portfolio stands at 239 MW. It is working with NTPC to enhance it’s renewable energy capacity by nearly 2.8 GW, ( Image Source :Getty )

The Indian Oil Corporation (IOC) announced that it will enter a joint venture (JV) with energy major NTPC Ltd to set up renewable power plants. IOC, India’s biggest oil company, stated that it would invest Rs 1,660.14 crore as equity into the new JV to set up renewable energy projects to cater to the increasing power demand of the refineries of the oil company. 

IOC, via a regulatory filing, said that it’s board in a meeting on Friday, approved the investment plan of the joint venture company and authorised the equity contribution of up to Rs 1,660.15 crore towards Indian Oil’s share of 50 per cent in the equity share capital of the JV, reported PTI. Notably, earlier in June this year, both IOC and NTPC formed a JV company with equal partnership, namely the IndianOil NTPC Green Energy Pvt Ltd. 

The firm earlier in June noted, “IOC incorporated the joint venture company (JVC) with NTPC Green Energy Limited, (a wholly-owned subsidiary of NTPC Limited). IndianQil NTPC Green Energy Private Limited will develop renewable energy-based power projects (viz. solar PV, wind, any other renewable energy, energy storage or any combination of the same), to meet the round-the-clock (RTC) power requirements of new projects of IndianQOil Refineries.”

This JV was created with an objective to create a minimum capacity of 650 MW of round-the-clock renewable energy to cater the energy needs of IOC refineries. NTPC also set a target of developing a renewable generation portfolio of 60 GW over the next ten years to ‘aggressively pursue its green energy business’. 

Notably, IOC announced earlier in March this year that is consolidating it’s green assets under one umbrella. The firm noted that it planned to build a portfolio of 3 GW renewable energy and 0.6 million tonnes of biofuels by 2025. The company stated that it would expand it’s renewable energy portfolio to 35 GW by the end of the decade and 200 GW by 2050. Additionally, the oil major said that it intends to increase capacity to generate biofuels from agri and municipal waste to 7 million tonnes and biogas to 9 million tonnes by 2050. 

Currently, IOC’s renewable energy portfolio stands at 239 MW, which is being increased through new wind, solar, hydel and pumped hydro projects. IOC is also working with NTPC to enhance it’s renewable energy capacity by nearly 2.8 GW, the report said. To achieve this, IOC is also solarising 20,705 petrol pumps with an installed capacity of 121 MW. 

The oil producing company has also joined hands with Israeli start-up Phinergy for a battery JV. In the green hydrogen sector, the company entered into collaboration with ReNew Power Private Limited (ReNew) and Larsen & Toubro Limited (L&T), and a 7 kilo-tonnes per annum green hydrogen capacity plant is in the works at the Panipat refinery of the firm.