Stock Market update: BPCL shares surges by 1.46% as the company plans to invest Rs 25,000 crore in renewable energies

The company will build a portfolio of one gigawatt, driven primarily by solar power, by 2025 with an investment of Rs 5,000 crore and close some acquisition deals soon.

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Shares of State-run Bharat Petroleum Corporation Limited (BPCL) have jumped up to 1.46 per cent about 05.90  points in an intra-day session trading at Rs 402.90 at the NSE, the company said on Thursday. The company is setting aside Rs 25,000 crore to build its renewable energy portfolio by 2040 so that it will cut its net-zero carbon emission by the year.

The privatisation bound company said they are going to build 10 gigawatts (GWs) of renewable energy by 2040 through different organic and inorganic methods. The company currently generated 45 megawatts (MWs) of electricity. Across the world, the oil companies have been investing heavily in the renewable sector like wind, solar as they chart a course of transition towards clean sources of energy.

The company is been investing in clean fuel and building refineries, improving its efficiency and reducing its carbon emissions. BPCL is a little late to the party as conglomerates like Adani, Reliance and Tata Group have already made their presence and footprint in building the capacity in the renewable energy sector. The company might face competition from independent players like ReNew Power and Azure Power Global which are backed by private equity firms.

While commenting on the investment, Amit Garg, Executive Director, Renewable Energy, BPCL said, “We at BPCL are committed to Scope 1 and 2 and aim to become net-zero by 2040. This strategic business is a part of it. We are seeing a shift from fossil fuels to renewable energy. India would be among the countries which will continue to grow in fossil fuels, but we understand that it has to eventually move to clean energy.”