ONGC to invest Rs 2 lakh crore to achieve net-zero emission target

ONGC produces about two-thirds of India’s crude oil and about 58% of natural gas. The state-owned firm will invest Rs 97,000 crore by 2030 to establish 5 gigawatts of renewable energy capacity, green hydrogen, biogas, a pump storage plant, and an offshore wind project.

State-owned Oil and Natural Gas Corporation (ONGC) will invest approximately Rs 2 lakh crore in renewable energy projects and green hydrogen plants to achieve net-zero carbon emissions by 2038. The company, which contributes to two-thirds of India’s crude oil and 58% of its natural gas production, outlined its path to net-zero in a detailed 200-page document. (ONGC produced 21.14 million tonnes of oil in 2023-24 (April 2023 to March 2024) and 20.648 billion cubic metres (bcm) of gas.)

By 2030, ONGC plans to invest Rs 97,000 crore to develop 5 gigawatts of renewable energy capacity, including green hydrogen, biogas, pump storage plants, and offshore wind projects. By 2035, an additional Rs 65,500 crore will be allocated, mainly for green hydrogen and ammonia plants. The remaining Rs 38,000 crore will be invested by 2038, focusing on 1 GW of offshore wind projects. These initiatives aim to offset 9 million tonnes of carbon emissions (Scope-1 and Scope-2).

To eliminate gas flaring by 2030, ONGC will invest Rs 5,000 crore in technological advancements. In 2021-22, the firm released 554 million cubic meters of methane due to it being an incidental by-product or economically nonviable to pipe to consumers.

The company plans to spend Rs 30,000 crore on 5 GW of solar parks and wind turbines. By 2035 and 2038, an additional 1 GW each of solar and onshore wind capacity will be added, with a combined cost of Rs 10,000 crore.

For green hydrogen and green ammonia projects, ONGC will invest Rs 40,000 crore by 2030 and another Rs 40,000 crore by 2035. Offshore wind projects will also see significant investment, with Rs 12,500 crore for an initial 0.5 GW by 2030 and Rs 12,000 crore to double the capacity by 2035. Another 1 GW of offshore wind energy will be added by 2038 at Rs 25,000 crore. Additionally, Rs 20,000 crore will be spent on 3 GW of pump storage plants, along with investments in biogas, carbon capture, and other clean energy projects.