Sembcorp & BPCL Form JV for Renewable Energy & Green Hydrogen in India

New Delhi, Apr 8 (PTI) Sembcorp will form a 50:50 joint venture with Bharat Petroleum Corporation Ltd (BPCL) to develop renewable energy and green hydrogen projects across India.

Sembcorp Green Hydrogen India Private Limited, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), and BPCL on Tuesday entered into a joint venture (JV) agreement to explore renewable energy and green hydrogen projects across India, the firms said in a statement.

This strategic partnership aims to support India's energy transition and development goals.

The collaboration will focus on the production, operation, and sale of renewable energy and green hydrogen, along with its derivatives.

"The JV will also consider projects in green ammonia production and bunkering, emissions reduction for port operations and other emerging green fuel technologies," it said. "The potential projects will leverage Sembcorp's renewables experience and BPCL's expertise in the petroleum sector and infrastructure."

Vipul Tuli, President & CEO, Renewables, West, and CEO, Hydrogen Business, Sembcorp, said, "Sembcorp's collaboration with BPCL seeks to support renewable energy and green hydrogen development in India. With Sembcorp's renewables expertise and BPCL's strength in the petroleum sector, we look forward to identifying opportunities to help decarbonise hard-to-abate sectors. Sembcorp is committed to delivering scalable, low-carbon solutions for a sustainable future."

Sembcorp is pursuing the use of green hydrogen and ammonia as key decarbonisation pathways. With 6 GW of renewable assets in India, Sembcorp is well-positioned to enable large-scale, low-cost green hydrogen production.

The signing of this JV agreement is not expected to have a material impact on the earnings per share and net tangible assets per share of Sembcorp for the financial year ending December 31, 2025.

Speaking about the partnership, G Krishnakumar, chairman and managing director of BPCL, said, "BPCL's collaboration with Sembcorp marks a significant milestone in our journey towards a sustainable tomorrow. BPCL will leverage its combined aspirations, expertise and resources, to jointly explore the development of innovation-led, best-in-class renewable energy and green hydrogen solutions for supporting India's ambitious climate goals and our own aspiration to achieve net zero emissions by 2040."

BPCL is committed to building a robust renewable energy portfolio, with a target of 10 GW, to meet the energy needs of tomorrow and become a net zero energy company by 2040, he added.