Nuclear, Hydrogen, Data: IOCL's Diversified Energy Play

Indian Oil Corporation (IOCL) has laid out an ambitious strategy to achieve USD 1 trillion in revenue and reach net-zero emissions by 2047, as part of its 'Imagining Tomorrow' vision.

To realize this target, IOCL plans to diversify beyond traditional energy into emerging sectors such as data centers, nuclear energy, lithium-ion battery manufacturing (5 GWh capacity), mining, and green energy. The roadmap also includes a significant push to expand its core refining and petrochemicals businesses, with refining capacity expected to grow from 81 million tonnes per annum (MTPA) to 100 MTPA and petrochemicals output to increase to 13 MTPA by FY28.

In the clean energy segment, IOCL aims to scale up its green hydrogen production to 80 kilotonnes per annum and grow its green energy capacity from the current 247 MW to 31 GW. Natural gas trading and distribution are also set to double, reaching 16.5 MT.

To support execution and manage capital efficiently, IOCL will leverage a combination of internal accruals, debt financing, and strategic collaborations, including Special Purpose Vehicles (SPVs). Maritime logistics will be enhanced in partnership with the Shipping Corporation of India, including investment in Very Large Crude Carriers (VLCCs).

Additionally, IOCL is advancing a joint venture with the Nuclear Power Corporation of India to develop two 700 MW nuclear power units, with site selection currently underway. The company is also undertaking a restructuring of its pipeline business to drive profitability and operational efficiency.

News by Rahul Yelligetti.