Sembcorp enters JV with Bharat Petroleum for renewable energy projects

[SINGAPORE] Sembcorp Green Hydrogen India, a wholly owned subsidiary of Sembcorp Industries, has entered a joint venture (JV) deal with Indian oil and gas company Bharat Petroleum for renewable energy and green hydrogen projects across the country. 

The partnership will support India’s energy transition and development goals, said Sembcorp on Wednesday (Apr 9).

It will also support the state-owned oil and gas company’s ambitions to achieve net-zero Scope 1 and 2 emissions by 2040. 

Scope 1 emissions refer to direct greenhouse gas emissions from sources an organisation directly owns or controls, while Scope 2 emissions are those a company causes indirectly, such as through the generation of electricity that it consumes. 

The JV will further consider projects in green ammonia production and bunkering, emissions reductions for port operations and other emerging green fuel technologies, Sembcorp said.

These potential projects will leverage its experience in renewables and Bharat Petroleum’s expertise in the petroleum sector and infrastructure. 

Both companies will work towards decarbonising “hard-to-abate sectors”, said Vipul Tuli, president and chief executive of renewables, west, and CEO of hydrogen business at Sembcorp. 

Sembcorp said Bharat Petroleum aims to build a “robust” renewable energy portfolio with a target of 10 gigawatts. 

The partnership follows earlier discussions about a JV between the Sembcorp unit and the state-owned oil and gas company, announced in September 2024. 

The group said the JV is not expected to have a material impact on its earnings per share and net tangible assets per share for the fiscal year ending December 2025. 

Shares of Sembcorp closed Tuesday 7.6 per cent or S$0.44 higher at S$6.23.