India’s ONGC Outlines $24.2 Billion Investment to Meet Net-Zero Emissions Target

India’s state-controlled Oil & Natural Gas Corporation (ONGC) is planning to invest 2 trillion rupees ($24.2 billion) on multiple clean energy projects, as it aims to achieve net-zero emissions by 2038, its chief executive, Arun Kumar Singh, has said.

The Indian state giant is the largest oil & gas producer in the country and is now swiftly scaling up its renewable capacity and aims to invest in multiple low-carbon projects.

“ONGC is actively exploring collaborations with leading players to leverage various low-carbon energy opportunities including renewables, green hydrogen, green ammonia and other derivatives of green hydrogen,” Singh said this week at a shareholder’s meeting in New Delhi, according to a Reuters report.

The company earlier said it is “charting a roadmap for opportunities in renewable energy and low-carbon sectors” aimed at scaling up its renewable portfolio to 10 gigawatts by 2030.

ONGC has 189 megawatts of electricity generation capacity from renewables, and its new target of 10 GW capacity by 2030 could prove to be an ambitious one, sources have said.

The Indian state-giant is building a 5 GW solar energy project in Rajasthan and has laid down plans to set up offshore wind energy plants, Singh noted, according to Reuters.

The company is also scouting for a partner to set up a 1 million tonnes per year green ammonia project, local media reports have claimed.

“We have financial muscle to invest both in hydrocarbon and new energy,” Singh said, according to Reuters.

CCUS plans

ONGC also earlier stated that it was ramping up its focus “on research and development in carbon capture, utilisation and storage (CCUS) technologies to mitigate emissions from existing processes”.

The company has aligned itself with India’s ambitious goals to “curtail carbon emissions by 1 billion tonnes and simultaneously reduce carbon intensity by 45% by 2030”.

However, ONGC had reiterated that oil and gas exploration and production “will remain the cornerstone of its energy business”.

“Extensive exploration in known basins as well as frontier plays, sustained production from existing fields and exploitation of deep-water fields remain the central areas of emphasis,” it previously noted.

Reducing emissions

ONGC has said it has cut the carbon emissions intensity of its operations by more than 12% since 2016.

India’s public-sector enterprises are under pressure from the government to scale down emissions and reduce their carbon footprints in line with global practices.

The government earlier unveiled a proposal that could compel oil refineries and fertiliser plants to use green hydrogen.

While ONGC has been predominantly focusing on its oil and gas operations, it has registered 15 clean development mechanism (CDM) projects with the United Nations Framework Convention on Climate Change under the Kyoto Protocol as a part of its sustainability drive.

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