New Delhi: State-run Bharat Petroleum Corporation Limited (BPCL) is set to form two joint ventures with private entities to expand its footprint in Renewable Energy (RE), Green Hydrogen and Compressed Biogas (CBG). At a board meeting held on Thursday, the company’s Board of Directors approved two proposals for BPCL to enter into joint venture agreements with Sembcorp Green Hydrogen India Pvt Ltd (SGHIPL) and GPS Renewables Pvt Ltd, BPCL told the bourses in a regulatory filing.
According to the regulatory filing, the shareholding pattern of the two JV companies will be 50:50. BPCL said that through the JV with Sembcorp, it will develop, construct, operate renewable energy projects and green hydrogen (and its derivatives) projects across India, including sale of renewables energy and green hydrogen and its derivatives.
On the other hand, through the JV with GPS Renewables, the PSU will construct, operate and maintain CBG plant across India, including sale of CBG and its derivatives (subject to regulatory approvals from NITI Aayog, DIPAM etc). The state-run company said that the JV companies will further its plan to diversify its operations to support energy transition and the net zero commitment of the company.
In addition, the JV for undertaking CBG projects will allow the PSU to meet the CBG blending obligation mandated by the government. In November 2023, the government mandated City Gas Distribution (CGD) entities to blend CBG with Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). While the obligation is voluntary until the end of the current financial year. Starting next year, CGD entities will have to mandatorily achieve CBG blending of 1 percent in FY2025-26 and increase it to 3 percent in FY2026-27, 4 percent in FY2027-28 and 5 percent in FY2028-29. In order to meet this obligation, oil marketing companies (OMCs) are expanding their presence in the CBG sector.
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