Indian Oil Corporation’s (IOCL) board of directors has approved an additional equity investment of ₹10.86 billion (~$129.44 million) in its wholly owned subsidiary, Terra Clean, to develop 4.3 GW renewable energy capacity. This decision adds to the previously approved 1 GW capacity.

Terra Clean was incorporated on March 15, 2023. In April 2024, it received an initial equity investment of ₹13.03 billion (~$155.28 million) to develop its first 1 GW renewable energy capacity.

The company’s formation was part of IOCL’s strategy to consolidate its green energy efforts. Terra Clean established a dedicated entity to streamline resources and foster innovation in renewable energy.

IOCL plans to install 1 GW of renewable energy projects, including standalone ground-mounted solar, standalone onshore wind, or wind-solar hybrid systems, at a cost of ₹52.15 billion (~$625.38 million).

The company is integrating its existing green assets and expanding into segments such as biofuels, carbon offset mechanisms, carbon capture, and green hydrogen.

It has a renewable energy portfolio of 238.70 MW comprising 167.6 MW of wind and 71.10 MW of solar capacity. The company plans to install 31 GW of renewable energy capacity by 2030 and achieve net zero operation emissions by 2046.

As part of its long-term targets, IOCL aims to produce 0.6 million metric tons (MMT) biofuel by 2025, 4 MMT biofuel and 1 MMT biogas by 2030, and 7 MMT biofuel and 9 MMT biogas by 2050.

To support this growth, Terra Clean issued a tender in February this year for land, power evacuation, and balance of plant package for a 275 MW inter-state transmission system-connected wind project.

In December 2024, Terra Clean floated tenders for the land and connectivity approval packages for a cumulative 600 MW of interstate transmission system-connected solar power projects.