New Delhi: Hindustan Petroleum Corporation Ltd. (HPCL) is focusing on increasing investments in renewable energy, biofuels and other clean projects to achieve net-zero emissions by 2040, reports Business Standards.
According to an investor presentation, green energy-related projects will make up about 36% of the company’s planned capital spending, amounting to nearly Rs 28,000 crore over the five-year period ending 2027–28. During the same period, HPCL expects its total capital expenditure to be around Rs 77,000 crore.
Under the plan, 15% of spending will go toward gas projects, 8% toward renewables, 4% toward biofuels, 3% toward electric vehicle and alternative fuel initiatives, and 6% toward net-zero-related projects. The remaining funds will be spread across other segments, including 7% for non-fuel businesses and 5% for petrochemicals, while 52% will continue to be directed toward core petroleum operations.
The increased focus on clean energy marks a clear shift in HPCL’s spending pattern. In the previous five years up to 2023–24, the company spent less than 2% of its capital budget on expanding biofuel and renewable capacity, and about 5% on developing its city gas distribution network.
As part of its net-zero roadmap, HPCL aims to raise its biofuel production capacity to 300 thousand metric tonnes by 2027–28, from 12.06 thousand metric tonnes in 2024–25. One of the key projects includes a second-generation ethanol refinery with a capacity of 100 kilolitres per day at Bathinda in Punjab, which is expected to cost ₹1,421 crore.
The country’s third-largest refiner also plans to expand its renewable power capacity to 2,400 megawatts by 2027–28, compared with 224 megawatts at the end of March 2025. A solar power project at Galiveedu in Andhra Pradesh is currently under construction at a cost of ₹682 crore.
In the green hydrogen segment, HPCL is planning a sharp increase in capacity to 9,670 tonnes per year by 2027–28, from 3.5 tonnes per year in 2024–25. The company has already commissioned a 370-tonne-per-year green hydrogen plant at its Visakh refinery in Andhra Pradesh. Additional projects include a 5,000-tonne-per-year unit at the same refinery and a 4,300-tonne-per-year project at its Rajasthan refinery.
The company plans to invest about ₹60,000 crore toward its net-zero initiatives by 2040, reinforcing its long-term shift toward cleaner energy and lower emissions.
