ONGC to invest  ₹1 lakh cr in energy transition; targets net zero by 2038

India's premier oil and gas producer Oil & Natural Gas Corporation (ONGC) has set a goal to become a net zero carbon emission company by 2038 and is planning to invest over ₹1 lakh crore by 2030 for the transition from oil to chemicals and to set up 10 gigawatts (GW) of green energy.

ONGC has tied up with the Rajasthan Government for setting up 5 GW of solar and wind capacity and is scouting for partners for the remaining 5 GW which includes offshore wind capacity, Arun Kumar Singh, Chairman and CEO, told a press conference in Mumbai, today.

"At present, we have 189 megawatts (MW) of green energy in solar and wind and going forward will aggressively invest in green energy. One initiative as part of the transition will be to set up one MMTPA (million metric tonnes per annum) capacity of green ammonia", explains Arun Kumar.

He noted that as part of India's fossil fuel phasing out plans by 2070, ONGC will diversify from oil to petrochemicals in the long run. Its subsidiaries Mangalore Refinery and Petrochemicals Limited (MRPL) and OPaL( joint venture with GAIL & GSPC) already have petrochemical cracker units and in the near future, plans are to increase capacities and enter into more petrochemical products.

ONGC, with  ₹6,84,829 crore revenues from group operations, contributes 68% to India’s oil and gas production, with 53 Million Metric Tons of oil equivalent (MMToE). An investment of  ₹61,200 crore is being implemented for 14 development and 9 infrastructure projects in new discoveries and to increase the life cycle of existing oil and gas wells to increase output.

ONGC has implemented 15 Clean Development Mechanism (CDM) projects and 2.2 million Certified Emission Reductions having emission reduction potential of 16 lakh tonne CO2e per annum have been implemented. As part of the green transformation initiatives, ONGC is implementing many renewable energy-based projects such as solar, wind (onshore), solar parks, EV value chain, green hydrogen, storage, etc. Other initiatives include Carbon Capture, Utilisation, and Storage (CCUS), offshore wind project, Dynamic Gas Blending (DGB) technology on drilling rigs, a pilot geothermal energy project in Ladakh, etc.