BPCL and Sembcorp form a joint venture to develop renewables, green hydrogen in India

Bharat Petroleum Corporation, an Indian refiner, signed a joint-venture agreement on Tuesday with Singapore's Temasek backed Sembcorp for the development of green hydrogen and renewable projects in India.

According to the companies, the joint venture will also look at projects in green ammonia bunkering and production, emission reduction for port operations, as well as other green fuel technology.

Why it's important

The deal is made at a moment when India wants to reduce its dependence on fossil fuels, and increase investments in renewable energies to reach its goal of having 500 gigawatts of clean energy capacity by 2030.

CONTEXT

State-run oil refining companies such as BPCL have been forming partnerships in order to shift away from fossil fuels and towards greener alternatives.

Sembcorp signed an agreement with the Indian state of Odisha in eastern India earlier this year to develop a green hydrogen plant and industrial park.

By the Numbers

India aims to produce 5,000,000 tonnes of green hydrogen annually by 2030. This process will require 125GW of renewable electricity.

By 2030, the country aims to increase its non-fossil energy capacity from 165 GW.

Sembcorp India Energy is the Indian division of Sembcorp. It operates a portfolio of wind and solar power of approximately 5.8 GW in the country. $1 = 85.9000 Indian Rupees (Reporting and editing by Shreya Biwas in Bengaluru)

(source: Reuters)