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

Bharat Petroleum Corporation Limited (BPCL) is set to expand its presence in the renewable energy sector through two new 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., respectively.

The company said in an exchange filing on Thursday, September 12, that the Board of Directors approved the two joint ventures.

The joint venture with Sembcorp Green Hydrogen India aims to develop, build, and operate renewable energy and green hydrogen projects across India, including selling renewable energy and green hydrogen.

Agreements subject to approvals

Both agreements are subjected to approval by regulators.

“Entering into a joint venture agreement with Sembcorp Green Hydrogen India Pvt. Ltd (SGHIPL) in the domain of Renewable Energy and Green Hydrogen, subject to regulatory approvals from NITI Aayog, DIPAM etc,” the exchange filing noted.

Bharat Petroleum aims to construct, operate and maintain compressed biogas plants across India, including the sale of compressed biogas and its derivatives.

“Entering into a joint venture agreement with M/s. GPS Renewables Pvt. Ltd (GPS) for setting up of Compressed Biogas (CBG) plants across India, subject to regulatory approvals from NITI Aayog, DIPAM etc,” the exchange filing said.

BPCL will have a 50 per cent shareholding in both joint ventures.

According to the exchange filing, BPCL aims to transition to energy and achieve its net zero targets through these joint ventures.

In the previous quarter, Q1FY25, BPCL reported a 73.3 per cent dip in its net profit. The public sector company’s net profit was at ₹2,841.55 crore in the April-June quarter compared to a profit of ₹10,644.30 crore in the same quarter the previous year.

On August 21, Tamil Nadu Chief Minister MK Stalin laid the foundation for Sembcorp’s Green Ammonia plant in Tuticorin. According to reports, the plant costs around ₹36,000 crore.

In June, GPS Renewables entered into a joint venture with Indian Oil Corporation (IOC) to foster sustainable energy solutions in India.