:: Technical --- ID :: 19333
Oil and gas companies setting up net-zero targets
Oil and gas companies setting up net-zero targets

Oil and gas companies setting up net-zero targets

State-run oil and gas firms Indian Oil NSE -1.28 %, HPCL NSE -1.01 %, GAIL NSE -1.46 % and BPCL NSE -1.63 % are preparing roadmaps for net-zero emissions as they aim to shore up the nation's commitment to deal with the climate challenge.

The oil ministry has been proactive in pushing these firms into drawing up plans for increased induction of renewable energy and green hydrogen to offset emissions from operations, as well as to get them ready for an energy transition that could eat into traditional fuel sales business.

Net-zero for a company means achieving a balance between the quantum of greenhouse gases it places into the atmosphere and the amount it takes out. Indian oil companies are aiming to achieve net-zero for emissions released from their operations and not from their suppliers or customers.

BPCL is aiming to achieve net-zero emissions by 2040, while Indian Oil has said it will announce its target soon. HPCL and GAIL are working out details and a feasible target.

All four companies are expected to ready their roadmap by March. Their top executives have made presentations to officials in the oil ministry, offering a glimpse of what they intend to do, according to several people familiar with the matter.

"We will have a net-zero target and a detailed action plan in place soon," HPCL chairman MK Surana told ET. "We must align ourselves with the national commitment on climate."

Among state-run oil and gas firms, HPCL's decision in September to set up 5,000 EV charging stations over three years set off a chain reaction, prompting Indian Oil and BPCL to unveil their own plans of 10,000 and 7,000 charging stations, respectively.

BPCL, GAIL and Indian Oil have also begun the process to set up green hydrogen plants at their facilities.

The Economic Times 26-11-2021