Indian Oil Corporation (IOC), the nation's top oil firm, will invest Rs 2 lakh crore to achieve net-zero operational carbon emissions by 2046, its chairman Shrikant Madhav Vaidhya said on Thursday.

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The target set is in line with India's aim to reach net-zero emissions by 2070.

IOC, which refines crude oil into fuel and manufactures petrochemicals, will use a combination of energy efficiency measures, electrification of processes and fuel replacement.

"The company is embarking on a decarbonisation journey that will be crucial not only for the company's destiny but also for the planet," Vaidya said. "On the 99th year of India's independence (2046), IndianOil will be operationally independent of emissions."

The investment of over Rs 2 lakh crore will help mitigate emissions to about 0.7 billion metric tonnes of carbon dioxide a year by then.

Currently, IOC's greenhouse gas (GHG) emission, emanating majorly from the company's refining operations, is 21.5 million tonnes of carbon dioxide equivalent (MMTCO2e) per annum. This will rise to 40.44 MMTCO2e by 2030 after considering the expansions planned and taking the emissions of its subsidiaries into account.

"We have a well-crafted blueprint in place (for net zero). It adopts a multi-pronged approach to take us gradually towards the net zero destination. We have envisaged that an investment of over Rs. 2 lakh crore will be required to achieve the target by the year 2046," he said.

The company plans to use natural gas in refineries in place of liquid fuels as well as replace grey hydrogen with green one that is manufactured from renewable power.

Vaidya said IOC is also looking at carbon offsetting through ecosystem restoration and Carbon Capture Utilisation and Storage (CCUS), among others.

"IOC plans to achieve two-thirds of emission reduction through energy efficiency, electrification and fuel replacement efforts, while about a third of the total emission would be mitigated through options such as CCUS, nature-based solutions and purchase of carbon credits," he said.

Out of its current emissions, 96 per cent are on account of processes like direct fuel burning for deriving energy from heat, steam, electricity and cooling, which are part of operations. 
These constitute the Scope-1 emissions. The balance 4 per cent is on account of sourcing electricity from the grid which constitutes Scope-2 emissions.

Vaidya said IOC has prepared a roadmap to achieve net zero Scope 1 and 2 emissions -- that is, emissions produced from its crude refining operations and energy consumption.

To cut emissions, the firm will use renewable energy to fuel its capacity expansion and is setting up green hydrogen plants at its Panipat and Mathura refineries.

It plans for green hydrogen to account for 25 per cent of its overall hydrogen output by in 5-10 years and 100 per cent by 2040.

Vaidya also said IOC will have electric vehicle charging facilities at 10,000 fuel stations in two years.