HPCL Plans Major Refinery Upgrades and Green Energy Investments

Hindustan Petroleum plans to invest ₹90,000 crore by 2030, focusing on refinery expansions and clean energy. The company is also securing crude supply deals, including potential partnerships with US firms.

HPCL’s Expansion Plans and Future Strategies

Hindustan Petroleum Corporation Limited (HPCL) is set to invest ₹90,000 crore by 2030, with a significant portion of 30%-35% allocated to clean energy projects, as per news reports. 

This move aligns with its broader strategy of increasing refinery capacity, diversifying crude sourcing, and strengthening its green energy portfolio.

Managing Crude Supply Amid Geopolitical Shifts

HPCL had relied on Russian crude for 35%-40% of its total imports. However, with US sanctions affecting supply and Russian discounts narrowing, the company has adjusted its procurement strategy. 

HPCL has already secured its crude requirements until May 2025 and will continue evaluating opportunities, including potential long-term deals with US entities, as per news reports.

Investment and Expansion Plans

For FY26, HPCL has earmarked ₹12,000-14,000 crore in capital expenditure. Its broader ₹90,000 crore investment plan includes major refinery expansions. 

The Mumbai refinery now operates at 9.8 million tonnes, while the Vizag refinery has been expanded from 8.3 million to 15 million tonnes, with plans for a further 20% capacity increase.

HPCL is also setting up a ₹4,700 crore lube expansion project at its Mumbai refinery and a deasphalting plant to boost bitumen production, reducing imports and increasing margins by approximately $3 per barrel.

Renewable Energy Goals

HPCL aims to scale up its renewable energy capacity significantly. From 200 MW in FY24, the company targets 400 MW by FY25 and expects to cross 1 GW in FY26. 

By 2030, it plans to establish 10 GW of renewable energy capacity and expand its biofuels production to 1 million tonnes. With a total refining capacity reaching nearly 50 million tonnes.

Conclusion

HPCL’s ambitious ₹90,000 crore investment plan underscores its commitment to strengthening India’s energy sector through refinery expansions and a significant push toward clean energy. 

By diversifying crude sourcing and securing strategic partnerships, including potential US deals, the company is ensuring a stable supply chain despite geopolitical uncertainties.

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