HPCL bets big on biofuels & others renewables under new plan

State-owned refiner Hindustan Petroleum Corporation Limited (HPCL) is significantly scaling up investments in renewable energy, biofuels and green hydrogen as part of its roadmap to achieve net-zero carbon emissions by 2040. The company has earmarked a substantial share of its capital expenditure towards green energy projects over the next five years.

According to an investor presentation, HPCL plans to invest around Rs 77,000 crore during the five-year period ending 2027-28, with nearly 36%—about Rs 28,000 crore—allocated to green energy and net-zero initiatives. This includes investments across renewables, biofuels, electric mobility, alternative fuels and decarbonisation projects.

Renewable energy alone will account for 8% of the planned capex, while biofuels will receive 4%. Gas projects will see 15% of investments, supporting India’s energy transition, and net-zero initiatives will attract another 6%. HPCL also plans to invest in EV infrastructure and alternative fuels, reflecting a broader diversification beyond conventional petroleum operations.

As part of its renewable energy expansion, HPCL aims to increase its installed renewable capacity to 2,400 MW by 2027-28, a sharp rise from 224 MW at the end of March 2025. A major solar power project is currently under construction at Galiveedu in Andhra Pradesh, with an investment of Rs 682 crore.

The company is also aggressively expanding its biofuel portfolio. HPCL plans to raise biofuel production capacity to 300 thousand metric tonnes by 2027-28, compared to just over 12 TMT in 2024-25. A key project includes a 100 kilo litres per day second-generation ethanol bio-refinery at Bathinda, Punjab, with a capital outlay of Rs 1,421 crore.

Green hydrogen is another major pillar of HPCL’s clean energy strategy. The company targets green hydrogen capacity of 9,670 tonnes per annum by 2027-28, up from 3.5 TPA in 2024-25. Projects are already being developed at HPCL Visakhapatnam and Rajasthan refineries.

Overall, HPCL plans to invest nearly Rs 60,000 crore towards its net-zero transition by 2040, marking a decisive shift towards renewable and low-carbon energy solutions.