Crude Oil Refining Company Entered into Joint Venture with GPS Renewables Pvt Ltd to Set Up Compressed Bio-Gas Plants
The stock is up by 31.2 per cent from its 52-week low of Rs 234.15 per share.
Bharat Petroleum Corporation Limited (BPCL) and GPS Renewables Private Limited have formalised their commitment to establishing Compressed Biogas (CBG) plants across India through a newly signed Joint Venture (JV) agreement. This announcement follows their initial agreement disclosed on September 13, 2024, and marks a significant stride in bolstering India's energy transition efforts while directly contributing to BPCL's ambitious Net Zero targets. The collaborative endeavour underscores the dedication of both organisations to championing sustainable energy solutions in alignment with both national and global imperatives for climate action.
The core focus of this joint venture lies in the conversion of organic biomass waste into Compressed Biogas, a clean and renewable energy source. By deploying cutting-edge waste-to-energy technologies, the initiative seeks to tackle pressing environmental concerns. These include providing a sustainable solution for managing agricultural residue, thereby mitigating the detrimental practice of stubble burning and its associated air pollution and soil degradation. Furthermore, the project aims to significantly reduce greenhouse gas emissions, contributing to the broader fight against climate change, and foster sustainable rural development by establishing a structured value chain for agricultural residue procurement, thus generating supplementary income for farmers.
Looking ahead, the Joint Venture has outlined plans to establish between 8 to 10 CBG plants in states with substantial agricultural biomass potential, including Bihar, Odisha, Punjab, Uttar Pradesh, and West Bengal, over the coming years. This strategic geographical focus aligns with BPCL’s existing city gas distribution network, promising to optimise logistics and operational efficiency. Beyond environmental benefits, this initiative is poised to enhance India’s energy security by lessening reliance on imported fossil fuels. It also actively supports key governmental initiatives such as the GOBARdhan scheme, the SATAT scheme, and the CBG Blending Obligation, demonstrating a powerful synergy between public and private sector leadership in driving India towards a sustainable, low-carbon future.
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About the Company
Bharat Petroleum Corporation Ltd. (BPCL), a Fortune Global 500 company and the second-largest Indian Oil Marketing Company, is a Maharatna status integrated energy company involved in refining crude oil and marketing petroleum products across the upstream and downstream sectors. As of August 31, 2024, BPCL boasts a combined refining capacity of 35.3 MMTPA across its Mumbai, Kochi, and Bina refineries, supported by an extensive marketing and distribution network including over 23,000 fuel stations and 6,250 LPG distributorships. Committed to sustainability, BPCL aims to become a Net Zero Energy Company by 2040 for Scope 1 and 2 emissions and plans to establish EV charging stations at around 7,000 fuel stations in the next five years, while also actively engaging in community development initiatives aligned with its core purpose of 'Energising Lives' and its vision to be an admired global energy company.
The company has a market cap of Rs 1.3 lakh crore and the President of India owns a 52.98 per cent stake in the company. The company has been maintaining a healthy dividend payout of 34.2 per cent and has delivered good profit growth of 28.2 per cent CAGR over the last 5 years. The stock is up by 31.2 per cent from its 52-week low of Rs 234.15 per share. Investors should keep an eye on this multibagger Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.