Beyond Barrels: IOCL Plots Bold Leap Into Data Centres and Clean Tech for $1 Trillion Revenue Surge

Indian Oil Corporation Ltd (IOCL), the country's largest fuel retailer and refiner, has set a bold target to reach a revenue of $1 trillion by 2047. IOCL will venture out of its core business of oil and gas into high-growth areas like data centre, nuclear power generation, battery manufacturing, and mining of strategic minerals in its long-term plan.

 

In its core business, IOCL will raise refining capacity by 25%-from 81 million metric tonnes a year (mmtpa) to date to 100 mmtpa in FY28-and more than three-fold petrochemical production to 13 mmtpa. IOCL's natural gas distribution and trading business are also set to be raised more than two-fold to 16.5 million metric tonnes from 8 mmt.

 

Green energy will be a focus area, with IOCL expecting to develop 31 GW of capacity (from 247 MW of current capacities), 80 kilo tonnes per year of green hydrogen production, and five gigawatt hours of lithium-ion cell battery production. The data centre business can take advantage of IOCL's dormant fibre assets and land holdings, and synergies with green energy will potentially offer operational benefits.

 

In order to facilitate its growth, IOCL is reorganizing its pipeline business to improve its efficiency and profitability and enhancing maritime logistics by forging partnerships, including negotiations with Shipping Corporation of India to acquire Very Large Crude Carriers (VLCCs). Foreign expansion is also on the anvil with the intention of establishing import-export infrastructure on both coasts and entering new overseas retail markets. IOCL's diversification is part of its overall vision to be a net zero emissions company by 2047. The firm is working with strategic partners and will fund these endeavors with a combination of internal accrual and debt and strive to be a future-proofed energy major guiding India's energy transition.

 

Source: The Economic Times