FACOR and Indian Oil forge landmark MoU to transition from furnace oil to sustainable LPG

THEBUSINESSBYTES BUREAU

BHADRAK, SEPTEMBER 11, 2025

Ferro Alloys Corporation Ltd. (FACOR) has announced the signing of a Memorandum of Understanding (MoU) with Indian Oil Corporation Ltd. (IOCL) to transition its operations from furnace oil to liquefied petroleum gas (LPG). This landmark agreement marks a significant milestone in FACOR’s commitment to sustainability, promising substantial reductions in carbon emissions while reinforcing its pivotal role in India’s green energy transition.

As part of the MoU, IOCL will supply LPG as a cleaner alternative fuel, facilitating the phased elimination of furnace oil in FACOR’s industrial processes. This transition is expected to significantly mitigate the environmental and health impacts typically associated with high-emission fuel sources.

The switch to LPG is forecasted to result in a dramatic reduction in carbon emissions — cutting annual CO₂ emissions from furnace oil consumption from approximately 3,020 tCO₂e to around 252 tCO₂e. This represents an estimated reduction of 2,768 tCO₂e, underscoring FACOR’s robust commitment to aggressive decarbonization efforts.

“Switching to LPG from conventional furnace oil is a strategic step in reducing our environmental footprint,” said Pankaj Sharma, CEO of FACOR. “This MoU with IOCL not only accelerates our industrial sustainability goals but also aligns with India’s broader climate ambitions and its vision for a cleaner, greener future.”

The agreement comes amid an increasing regulatory focus on reducing industrial emissions across India. By embracing LPG as a sustainable fuel alternative, FACOR solidifies its leadership in eco-friendly manufacturing and demonstrates significant progress toward its goal of achieving net-zero carbon emissions by 2050.

FACOR and IOCL are currently finalizing implementation timelines, with plans to initiate the phased integration of LPG in the coming weeks. This collaboration reflects both companies’ commitment to innovation, environmental stewardship, and the continued advancement of India’s sustainable industrial future.