Industrial gases supplier BOC India is planning to capitalise on the increasing demand for hydrogen in the petroleum refining sector for the production of value-added and eco-friendly low-sulphur products.
Hydrogen is a catalytic agent used across the refining process, including in the desulphurisation processes involved in the production of Euro-III and IV grade fuels.
talks
The wholly-owned subsidiary of the Germany-based Linde Group is currently in talks with IOC, BPCL and HPCL to secure contracts for supply of hydrogen gas.
“We will participate in tenders floated by these companies,” Mr Pawan Marda, Assistant V-P and Company Secretary, said after the company's AGM.
He, however, did not mention the volume or size of business that the company was expecting from the sector.
Interestingly, BOC earlier attempts to get into the refinery gas segment a few years back had failed as most of the PSU refiners run captive hydrogen units.
According to him, the steel sector contributed more than 50 per cent of BOC's total business of Rs 1,036 crore in 2010.
Other areas such as glass and solar photovoltaic cell manufacturing also contribute to its revenues.
On Linde's proposed de-listing of BOC shares from the stock exchanges, he said the share buy-back offer (from BOC) did not receive due response and was abandoned.
As things stand, the promoters (Linde) may either dilute their holding to 75 per cent (from close to 90 per cent) in line with the listing norms or come out with a fresh share buyback offer.
Investments
The company is also planning to invest nearly Rs 1,000 crore to set up air separation units (ASUs) at Tata Steel's facility in Jamshedpur and another Rs 500 crore for SAIL's Rourkela Steel Plant.
A part of the project finances — nearly 120 million Euros (Rs 840 crore) — would be through external commercial borrowings (ECBs) from the Linde Group.
The two ASUs are expected to be commissioned by March 2012.
BOC will also set up ASUs in Kalinganagar (Orissa) and Taloja (Maharastra), the funding for which would be through internal accruals and bank loans.
The company is also in talks with JSW Bengal Steel for its proposed steel plant at Salboni in West Bengal.