BPCL to invest ₹1.5 trillion in transformative initiative, net-zero roadmap

'Project Aspire' is structured around two themes: nurturing the core and Future Big Bets. Under 'Nurturing the Core,' BPCL will enhance its refining, marketing,

New Delhi: Bharat Petroleum Corporation Limited (BPCL) on Monday announced an investment of Rs 1.5 lakh crore over the next five years towards its transformational initiative 'Project Aspire'.

During the 70th Annual General Meeting, BPCL Chairman G. Krishnakumar emphasized the company's commitment to growth, sustainability and a net-zero future. 

“As an oil major, we recognize the immense responsibility that comes with our role in boosting economies and transforming India's Aatmanirbhar in the domain of energy by the year 2047... We are also aware of the need for a global effort to curb global warming and the nation's goal of achieving net zero emissions by 2070. Accordingly, we have set a goal for our company to achieve net zero Scope 1 and Scope 2 emissions of greenhouse gases (GHG) by 2040.” Krishnakumar said.

'Project Aspire' is structured around two themes: nurturing the core and Future Big Bets. Under 'Nurturing the Core,' BPCL will enhance its refining, marketing, and upstream operations. Krishnakumar highlighted the company's goal of improving refining capabilities, with a particular focus on North India, where the expected shortfall of the product is expected to be around 10 million metric tons per annum by 2030.

The merger of Bharat Oman Refineries Limited (BORL) into BPCL during the year provided a significant boost to the company's refining capabilities.

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BPCL is also expanding the capacity of the Bina refinery from 7.8 MMTPA to 11 MMTPA, thereby securing its markets in northern and Central India.

In the marketing sector, BPCL plans to elevate its brand value and customer experience by harnessing technology and analytics. Investments of approximately Rs 27.53 billion will be directed towards setting up petroleum oil and Lubricants and lube oil base stock installations at Rasayani to ensure a continuous supply of products.

Upstream activities will continue to be in focus, and BPCL intends to monetize discoveries in Mozambique and Brazil, contributing significantly to the country's energy landscape.

BPCL's " Future Big Bets" covers five key areas: gas, non-fuel retailing, petrochemicals, green energy businesses, and digital ventures.

In the gas sector, BPCL is cultivating a comprehensive gas ecosystem, including strategic sources, import terminals, regasification facilities, and expansion of CGD networks with a capital plan of over INR 375 billion. Merger with Bharat Gas Resources Limited (BGRL) boosts BPCL's gas portfolio.

In the non-fuel retail business, BPCL is expanding its presence in the FMCG segment, particularly in rural markets, with the operation of run-down and leaky convenience stores in rural India. The company is setting up environmental centers in villages and training rural women to become entrepreneurs at the village level.

Petrochemicals play a crucial role in BPCL's growth strategy, as a major investment of Rs 490 billion has been approved for an ethylene cracking project at Bina. This project aims to increase the share of petrochemicals in the company's product portfolio to approximately 8%.

BPCL's green energy initiatives include providing electric vehicle charging facilities at 7,000 energy stations, progressing towards achieving higher ethanol blending, setting up renewable energy projects, and producing compressed biogas (CBG) from various sources.

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