State-owned Oil India Ltd (OIL) has unveiled plans to invest Rs 25,000 crore in clean energy projects as part of its strategy to achieve net zero carbon emissions by 2040, according to Chairman Ranjit Rath. The comprehensive initiative aims to balance the company’s traditional oil and gas operations with a growing focus on renewable and sustainable energy sources.
OIL’s net zero roadmap includes reducing gas flaring and commercializing stranded gas fields—currently untapped reserves—while also expanding into the renewable energy sector. Key projects under this plan involve the establishment of solar and wind power generation facilities, the development of green hydrogen plants, and the construction of biogas and ethanol production units.
Rath emphasized that these initiatives are part of a larger, integrated approach to align the company with global decarbonization efforts, while simultaneously boosting production of traditional energy resources. “We are not only focusing on reducing emissions but are also taking significant steps to increase our crude oil and natural gas output,” Rath said during a press conference.
Oil India aims to raise its production of crude oil and natural gas to 9 million tonnes of oil equivalent (MTOE) by the 2025-26 fiscal year, up from the 6.5 million tonnes produced in the year that ended March 31, 2024. This represents a nearly 40% increase in output, driven by enhanced exploration and development activities.
The company’s commitment to green hydrogen is particularly significant, as it represents a shift toward low-carbon energy solutions. Hydrogen, produced using renewable electricity, could play a critical role in reducing emissions in sectors that are difficult to decarbonize, such as heavy industry and transportation.
In addition to green hydrogen, OIL is also venturing into the biogas and ethanol sectors. These renewable fuels not only offer cleaner alternatives to conventional fossil fuels but also help reduce waste and promote a circular economy.
This substantial investment aligns OIL with India’s broader energy transition goals, which are part of the government’s strategy to achieve net zero emissions by 2070. Rath noted that OIL’s net zero plan fits into the larger national framework for sustainable growth, contributing to both energy security and environmental sustainability.
By pursuing this ambitious agenda, OIL is positioning itself as a leader in the energy transition, with a diversified portfolio that spans both traditional and renewable energy sources. “We are committed to achieving net zero by 2040 while ensuring that we continue to meet the country’s energy needs efficiently and sustainably,” Rath concluded.