Indian Oil Corporation Unveils Ambitious Roadmap for Reaching $1 Trillion in Revenue and Achieving Net-Zero Emissions by 2047

Strategic Insights -

Indian Oil Corporation (IOCL), the country's largest refiner, has outlined a comprehensive plan to achieve a revenue of $1 trillion and net-zero emissions by 2047. The plan, presented in IOCL's 'Imagining Tomorrow' document, focuses on diversification into new sectors, expansion of core refining and petrochemical businesses, and investments in green energy, nuclear power, and other initiatives. IOCL aims to boost its refining capacity to 100 million tonne per annum (mtpa), expand petrochemical capacity, and significantly increase green energy and green hydrogen production. The company will utilize a mix of internal funds, debt, and strategic partnerships to execute this ambitious plan.

Key Takeaways:

  • IOCL plans to achieve a revenue of $1 trillion and net-zero emissions by 2047 through diversification into new sectors, including data centres, nuclear power, battery manufacturing, mining, and green energy.
  • The company aims to boost its refining capacity to 100 million tonne per annum (mtpa) from the current 81 MTPA by FY28.
  • Petroleum chemical capacity is expected to expand to 13 MTPA from the current level.
  • IOCL plans to increase natural gas trading and distribution to 16.5 MT from 8 MT.
  • The green energy capacity is projected to increase to 31 GW from 247 MW, and green hydrogen capacity will reach 80 kilo tonnes per annum.
  • IOCL will produce 5 GWh of lithium-ion cell batteries.
  • The company will use a mix of internal accruals, debt, and strategic partnerships, including Special Purpose Vehicles (SPVs), to ease execution and manage capital expenditure.
  • IOCL will collaborate with Shipping Corporation of India on maritime logistics and strengthen VLCCs.
  • In the nuclear space, IOCL is progressing on a joint venture with Nuclear Power Corporation of India to build two 700 MW units, with site identification underway.
  • IOCL is restructuring its pipeline business to enhance profitability.

Statistics:

  • Refining capacity: 81 MTPA (current) to 100 MTPA (target by FY28).
  • Petrochemical capacity: 10 MTPA (current) to 13 MTPA (target).
  • Natural gas trading and distribution: 8 MT (current) to 16.5 MT (target).
  • Green energy capacity: 247 MW (current) to 31 GW (target).
  • Green hydrogen capacity: 80 kilo tonnes per annum (target).
  • Lithium-ion cell battery production: 5 GWh (target).
  • VLCCs: IOCL will collaborate with Shipping Corporation of India to strengthen VLCCs.

Sources:

  • IOCL's 'Imagining Tomorrow' presentation.