BPCL Board approves joint ventures with Sembcorp Green Hydrogen India & GPS Renewables to meet net-zero goals

Bharat Petroleum Corporation Limited (BPCL) is poised to enhance its presence in the renewable energy sector through two significant joint ventures. The state-owned company's Board of Directors has approved partnerships with Sembcorp Green Hydrogen India Pvt. Ltd. and GPS Renewables Pvt. Ltd.

The board's approval, announced in an exchange filing on Thursday, September 12, marks a strategic move for BPCL as it aims to transition towards sustainable energy solutions and achieve its net-zero targets.

Key Details of the Joint Ventures:

Sembcorp Green Hydrogen India Pvt. Ltd. (SGHIPL):

Objective: Develop, build, and operate renewable energy and green hydrogen projects across India.

Operations: The venture will involve the sale of renewable energy and green hydrogen.

Regulatory Approvals: The agreement is subject to approvals from regulatory bodies such as NITI Aayog and DIPAM.

GPS Renewables Pvt. Ltd.:

Objective: Construct, operate, and maintain compressed biogas (CBG) plants across India.

Operations: This includes the sale of compressed biogas and its derivatives.

Regulatory Approvals: Similar to the Sembcorp venture, this agreement also requires regulatory approvals from NITI Aayog and DIPAM.

BPCL will hold a 50% share in both joint ventures, aligning with its strategic objective to transition towards renewable energy and meet its net-zero goals.

Context and Background:

Financial Performance: In the first quarter of FY25, BPCL reported a significant 73.3% decrease in net profit, recording ₹2,841.55 crore compared to ₹10,644.30 crore in the same quarter the previous year.

Recent Developments: On August 21, Tamil Nadu Chief Minister MK Stalin laid the foundation for Sembcorp’s Green Ammonia plant in Tuticorin, which has an estimated cost of ₹36,000 crore.

Previous Ventures: In June, GPS Renewables entered a joint venture with Indian Oil Corporation (IOC) to promote sustainable energy solutions in India.

These joint ventures represent BPCL's commitment to expanding its footprint in the renewable energy sector and reducing its carbon footprint in line with global sustainability goals.