Indian Oil Corporation (IOCL), India's largest oil marketing company, is planning to set up a new company to house its alternative energy businesses, according to sources aware of the development. IOCL is already present and has ambitious expansion plans in biofuel, biogas, green hydrogen, EV mobility and EV batteries, among others.
It is venturing into green hydrogen production and is targeting 5% of hydrogen produced by it as green hydrogen by 2027-28 and 10% by 2029-30. “The new company will be formed next year. Discussions are in advanced stages with FIIs and other stakeholders on formalizing a structure for the company," said an industry official aware of the matter. IOCL declined to comment on the development.
The state-owned refiner and oil marketing company is also working in alternative energy areas to provide renewable energy solutions such as 2G ethanol from agri waste, fuel cell technology for automobiles, biodiesel production from solar power, and energy storage devices.
“A separate company will not only bring in better valuation for IOCL's renewable assets but also allow the company to rope in strategic partners and monetize assets easily, something it has not been able to do in other segments,” said the second official aware of the development.
