A private security guard stands in front of the regional head office of oil refiner Bharat Petroleum Corp (BPCL) in Kolkata, India, November 28, 2019.
The agreement aligns with India’s broader efforts to shift away from fossil fuels and expand its renewable energy capacity. The country has set a goal to achieve at least 500 gigawatts (GW) of clean energy by 2030, a substantial increase from its current capacity of 165 GW. This joint venture supports that ambition by focusing on innovative technologies like green hydrogen, which is produced using renewable sources and emits no carbon during its creation.
BPCL, traditionally a key player in India’s oil refining sector, is adapting to global energy trends by partnering with firms like Sembcorp. The latter brings considerable expertise, with its Indian subsidiary, Sembcorp India Energy, managing a wind and solar portfolio of approximately 5.8 GW across the nation. Earlier this year, Sembcorp also signed an agreement with Odisha, a state in eastern India, to establish a green hydrogen plant and industrial park, highlighting its growing presence in the region’s sustainable energy landscape.
India’s clean energy targets are ambitious. By 2030, the country aims to produce 5 million tonnes of green hydrogen annually, a process requiring 125 GW of renewable energy capacity. The collaboration between BPCL and Sembcorp is poised to contribute to this effort, leveraging the strengths of both companies. BPCL offers its extensive infrastructure and market reach, while Sembcorp provides technical know-how and experience in renewable projects.
This joint venture reflects a broader shift among India’s state-run oil companies, which are increasingly seeking partnerships to diversify into greener alternatives. The projects under consideration—ranging from green ammonia to emissions reduction in ports—demonstrate a commitment to sustainable development. As these initiatives progress, they are expected to play a vital role in helping India meet its 2030 renewable energy and hydrogen production goals, fostering a cleaner and more sustainable energy future.
