BPCL pioneers hydrogen-powered future with key partnerships and investments 

Bharat Petroleum Corporation Limited (BPCL) is making a decisive push toward hydrogen-based mobility and energy innovation through strategic collaborations aimed at transforming aviation, public transport, and startup ecosystems. Partnering with BluJ Aerospace, KPIT Technologies, Cochin International Airport Limited (CIAL), and the Agency for New and Renewable Energy Research and Technology (ANERT), BPCL is laying the groundwork for a hydrogen-powered future. These initiatives align with India’s ambition to achieve net-zero emissions by 2070 and position BPCL as a leader in the global clean energy transition.

How Is BPCL Revolutionizing Hydrogen Aviation with VTOL Technology?

BPCL has embarked on an ambitious project to develop the world’s first hydrogen-powered vertical take-off and landing (VTOL) aircraft ecosystem in collaboration with BluJ Aerospace, ANERT, and CIAL. Signed in Kochi on March 12, 2025, this quadripartite agreement represents a critical step in the decarbonization of urban and regional air mobility.

The VTOL aircraft, powered by green hydrogen fuel cells, will offer quiet, high-efficiency, and zero-emission air transport. Hydrogen as an aviation fuel has gained traction globally, as it eliminates carbon emissions and significantly reduces noise pollution compared to traditional jet fuels. Countries like the United States, Japan, and Germany are already investing in hydrogen-powered aviation, and BPCL’s initiative positions India at the forefront of this evolving sector.

BPCL’s role in this ecosystem is multifaceted. The company will establish hydrogen refueling infrastructure at its forthcoming Hydrogen Refueling Stations (HRS) in Kochi and Trivandrum, ensuring a sustainable supply chain for VTOL aircraft. Additionally, BPCL is engaging in research and development to design an Indigenous Proton Exchange Membrane (PEM) Hydrogen Fuel Cell with high power density to facilitate vertical lift capabilities, a crucial factor in making hydrogen-based aviation feasible at scale.

The collaboration brings together leading experts in renewable energy, aviation, and fuel cell technology, with government backing reinforcing the project’s national importance. BPCL’s Chairman & Managing Director, G. Krishnakumar, emphasized that green hydrogen will be a game-changer for aviation and urban mobility, reaffirming BPCL’s commitment to pioneering practical and scalable clean energy solutions.

What Role Does BPCL Play in Hydrogen-Powered Public Transport?

As part of its hydrogen expansion strategy, BPCL has also signed an agreement with KPIT Technologies to introduce hydrogen fuel cell electric buses between Kochi and Trivandrum. The MoU, signed at the Global Hydrogen and Renewable Energy Summit, aligns with the National Green Hydrogen Mission and aims to establish a hydrogen-powered public transport corridor in Kerala.

Hydrogen fuel cell buses offer several advantages over battery-electric and diesel-powered vehicles. Unlike battery-electric buses, which require long charging times, hydrogen fuel cell buses can refuel in minutes, making them highly suitable for long-distance and high-frequency routes. Additionally, hydrogen-powered buses emit only water vapor, making them a zero-emission alternative for sustainable urban transit.

BPCL’s role in this initiative is to develop and operate hydrogen refueling stations in Kochi and Trivandrum. The company is also investing in the production of high-purity (>99.99%) green hydrogen, ensuring a reliable fuel supply for the project. KPIT Technologies, on the other hand, will contribute indigenously developed fuel cell technology, advancing India’s Aatmanirbhar Bharat (Self-Reliant India) initiative by reducing dependency on imported hydrogen technologies.

The pilot program will provide real-world data on fuel cell bus performance under Kerala’s unique climatic conditions, including high humidity, temperature fluctuations, and monsoons. This data will be instrumental in refining fuel cell technology for broader public transport adoption across India.

How Is BPCL Supporting Hydrogen and Energy Startups?

Beyond aviation and public transport, BPCL is investing in energy innovation through its BPCL Ankur Fund, which has launched the ‘Emerge’ cohort to support startups focused on Energy Efficiency and City Gas Distribution (CGD).

Since 2016, BPCL’s Ankur Fund has provided ₹28 crores in grants to 30 startups, reinforcing its commitment to fostering clean energy and digital transformation within the oil and gas sector. The newly launched ‘Emerge’ initiative seeks to identify and fund early-stage startups developing energy optimization, AI-driven metering, predictive maintenance, and hydrogen storage solutions. Selected startups could receive up to ₹5 crores in investment through equity or convertible preference shares.

This initiative is strategically aligned with BPCL’s Net Zero Roadmap, which includes scaling hydrogen mobility, developing energy-efficient infrastructure, and integrating AI-driven solutions for sustainable energy management.

How Does BPCL’s Hydrogen Strategy Impact Its Stock and Market Sentiment?

BPCL’s aggressive push into hydrogen energy comes at a time when the company is navigating market fluctuations and refining margin pressures. As of March 18, 2025, BPCL’s stock is trading at ₹262.18 per share, reflecting a 9.95% decline over the past year. However, its three-year return stands at 43.98%, outperforming the Nifty 100 index, which gained 31.16% in the same period.

Technical indicators suggest a bearish sentiment, with moving averages, Bollinger Bands, and MACD pointing to short-term volatility. BPCL’s 8.01% dividend yield remains attractive for income-focused investors, while its 28.2% compound annual profit growth over five years signals long-term stability.

In its latest financial results, BPCL reported a 37% year-over-year increase in net profit, reaching ₹46.49 billion in Q3 FY25. However, this was below analyst expectations of ₹48.52 billion, due in part to a decline in gross refining margins, which dropped from $14.72 per barrel to $5.95 per barrel.

Market analysts hold mixed views on BPCL’s stock. Refinitiv data indicates that 59% of analysts recommend a ‘Buy’, 24% suggest ‘Hold’, and 17% advise ‘Sell’. While BPCL’s hydrogen investments offer long-term growth potential, near-term stock movements may be influenced by global oil price fluctuations and refining margins. Investors considering BPCL should closely monitor its hydrogen projects and policy support for green energy expansion.

How Is BPCL Positioning Itself as a Leader in Hydrogen Energy?

BPCL’s hydrogen strategy is a multi-pronged approach that integrates aviation, public transport, and startup ecosystems into a unified clean energy roadmap. Its VTOL aircraft ecosystem, hydrogen-powered buses, and Ankur Fund investments reflect a bold vision for India’s hydrogen economy.

With global governments increasing regulatory incentives for hydrogen energy, BPCL’s investments position it as a key player in the global clean fuel transition. As the company accelerates its hydrogen infrastructure rollout, its role in reducing India’s reliance on fossil fuels and decarbonizing key sectors will be closely watched by investors, policymakers, and industry leaders.