ONGC to spend ₹2 lakh crore on clean energy projects

ONGC, India's largest oil company, will invest ₹2 lakh crore (just above $24 billion) on clean energy projects Chairman Arun Kumar Singh told the company's annual general meeting on Tuesday.

Of this, Rs 1 lakh crore would be invested by 2030, by when the company hopes to own 10 GW of renewable energy capacity, Singh said. The investments will enable ONGC to meet its target of achieving net-zero carbon emissions by 2038.

ONGC, which is responsible for about two-thirds of India's oil production and more than half the country's gas output, is looking to strengthen its clean energy presence even as it seeks to boost hydrocarbon output.

Singh told the gathering the company has been seeking partnerships with other players to leverage low-carbon opportunities in renewables, green hydrogen, green ammonia and other derivatives of green hydrogen.

ONGC, which is looking for a partner to set up a 1 million tonnes per year green ammonia project, is also building a 5 GW solar project in Rajasthan. The company is looking for opportunities for an additional 5 GW and has plans to set up offshore wind farms, it said.

Further, it will bring 25 compressed bio-gas plants online by the financial year ending March 31, 2026.

ONGC also reported in its Chairman's letter to shareholders that there was an increasing focus on carbon capture technologies, especially related to utilization and storage.

The company said it has integrated sustainable practices into its operations, which had allowed the company to lower Scope 1 and Scope 2 emissions by 17 percent over the last five years.

In FY23, the company reduced emissions by 2.66 percent to 8.89 million metric tons of CO2 equivalent.