Indian Oil Corporation, the nation's largest oil firm, is targeting to become a $1 trillion company by 2047, combining growth in traditional oil refining and fuel marketing with clean energy avenues like green hydrogen and EV charging, its chairman said.

Indian Oil Corporation (IOC) posted a record net profit of ₹39,619 crore ($4.7 billion) on a revenue of ₹8.66 lakh crore ($104.6 billion) in the 2023-24 (April 2023 to March 2024) fiscal.

IOC to focus on expand oil refining capacity, biofuels and clean mobility

The company will continue to invest in fossil fuels and new energy avenues to have a balanced portfolio that will help achieve net-zero carbon emissions by 2046, company chairman Shrikant Madhav Vaidya said in its latest annual report.

It will expand oil refining capacity, and invest in petrochemical units that will convert crude oil into value-added chemicals directly, while also increasing its focus on gas, biofuels and clean mobility.

“With India’s economy on the rise, the energy needs of the country are growing exponentially. As ‘The Energy of India’, we have been stepping up the pace and expanding our capabilities. We aim to become the nation’s lead energiser, fulfilling 12.5% of India’s energy needs by 2050,” he said.

IOC, Mr. Vaidya said, “embarking on an aspirational journey to become a ‘One Trillion Dollar Giant’ by 2047.”

“Our goal to attain a revenue of $1 trillion is set against the backdrop of India’s vision to transform into an economy of over $30 trillion by 2047,” he added.

IOC will “make significant capital investment in both brownfield and greenfield expansions to ensure uninterrupted energy,” he said.

Petrochemical expansion

“Petrochemical integration will also be a key focus area that will greatly enrich our value chain,” Mr. Vaidya said.

While the first phase of petchem expansions at Panipat in Haryana and Paradip in Odisha is complete, the one at Gujarat refinery is scheduled for commissioning in 2024-25. The firm is also setting up a polypropylene unit at Barauni refinery.

“We are scaling up our capacity, targeting an increase to 13 million tonnes and achieving a petrochemical intensity index of 15% by 2030,” he said.

“By integrating petrochemicals into our refining investments, we are expanding our product range to include niche offerings like speciality chemicals and biopolymers,” he added.

Alongside, it will pursue green initiatives, including hydrogen mobility, hydrogen transportation, biofuels, electric mobility, solar cooktops and minimising water footprint, he said.

"In pursuit of our vision for a greener future, your company has resolved to consolidate its green initiatives under a single umbrella by setting up a wholly-owned subsidiary Terra Clean Limited. This new entity will undertake low carbon, new, clean, and green energy businesses," he said.

By putting all green initiatives under one arm, IOC is looking to optimise resource allocation, enhance innovation, and implement cutting-edge solutions more efficiently.

"As part of its carbon-neutral energy vision, your company plans to establish 1 GW of renewable energy capacity with an investment of over Rs 5,000 crore," the chairman said.

“This green arm will spearhead our initiatives in renewable energy, ensuring that we remain at the forefront of the energy transition and contribute significantly to India’s ambitious renewable energy targets.”

Eye on renewables

The firm aims to enhance its renewable energy capacity to 31 GW by 2030, primarily through solar and wind projects, Mr. Vaidya said, adding that IOC is integrating renewable power into its refinery operations. It is also energising fuel stations and installations with solar power.

IOC has formed a joint venture with Israeli technology company Phinergy for aluminium-air batteries and with Panasonic Energy of Japan for advanced cell manufacturing of lithium-ion batteries in India.

“With a vision to propel ‘Make in India’ for the world, the JV plans to establish a one GWh capacity factory by 2027, with an ambitious expansion to 5 GWh by 2031,” he said on the joint venture with Panasonic.

IOC also has a joint venture with Sun Mobility Pte Ltd to establish one of the largest battery-swapping networks in India by 2030.

In the realm of compressed bioGas (CBG), it plans to set up 30 CBG plants nationwide this year.

On hydrogen, the firm is looking to convert half of its current hydrogen consumption to green by 2030. “Our plan involves setting up green hydrogen plants across all refineries and propelling the advent of hydrogen mobility in the country,” the chairman noted.

IOC is betting big on battery swapping solutions, particularly for the two and three-wheeler segment, with plans to expand this avenue for heavy-duty vehicle applications.