Fortune 500 India: “Oil will continue to be in focus for a few more decades”

On EV Transition

We have a long way to go before EVs can make a substantial dent in the overall fuel demand. However, it can help in meeting a part of the rapidly- growing energy requirement in the country. There are many factors like availability of electric vehicles, charging eco system, affordability, awareness among consumers, convenience , life cycle economic benefits, etc. for EV sales to pick up. We have set up charging facilities at around 322 retail outlets and will add another 5,000 in the next three years. Oil will continue to be in focus for a few more decades, but things will evolve as new forms of energy start making inroads.

On Green Fuels

It is not only about changing the fuel, but the way we make fuel is also changing, towards more environment-friendly and less carbon-intensive refineries. For example, use of renewable power, green hydrogen, natural gas in operation of refineries, blending of ethanol in petrol, blending of CBG in CNG, etc. Currently, we sell CNG in 800 pumps and plans are to increase this to 5,300 outlets in a few years. We are also looking at dispensing LNG directly as a transportation fuel and are setting up 11 stations on an experimental basis. We will have 5 MMTPA of LNG regasification capacity, which will become one of our future growth drivers. We are also setting up a 2G ethanol biorefinery in Bathinda and a 370-MT pilot plant at our Vizag refinery for production of green hydrogen. In fact, we had set up a green hydrogen plant a year ago at our R&D centre and are using only green hydrogen for all R&D requirements.

On Future Growth Strategy

For at least two decades, demand for oil is not likely to reduce in India. To meet this requirement, we are adding around 17.7 MMTPA of refining capacity with more energy-efficient and less carbon-intensive processes and technologies. Residue upgradation unit being installed at Visakhapatnam is the first of its kind in the country, which will convert bottoms of the barrel to valuable liquid distillates instead of coke. Other opportunities are emerging in new forms of energy like biofuels which include 2G & 1G ethanol, CBG, bio diesel, green hydrogen, electric mobility and renewables. HPCL has also forayed into non-fuel retailing by opening branded convenience stores, HappyShop. We are also working on a digital transformation strategy to leverage new-age technologies.