ONGC Outlines Rs 1 Lakh Crore Capex for Green Energy Transition

ONGC's Ambitious Green Energy Roadmap

Oil and Natural Gas Corporation Ltd. (ONGC) unveils its strategic plan to invest Rs 1 lakh crore in green energy initiatives over the next four to five years. As part of this roadmap, ONGC aims to develop five gigawatts of solar generation capacity within the next two to three years. In an interview, Arun Kumar Singh, chairman and CEO of ONGC, emphasizes the availability of sufficient land in Rajasthan and other regions for the solar project.

However, the challenge lies in establishing round-the-clock solar generation capabilities. The company is actively exploring solutions to enable continuous solar power production.

Wind Generation Capacity Expansion

In addition to solar power, ONGC intends to set up a gigawatt capacity for wind generation. The company's ability to pursue this goal depends on the success of bids in government auctions. By venturing into wind energy, ONGC aims to further diversify its green energy portfolio and contribute to India's renewable energy targets.

Green Ammonia Plant and Sustainable Production

ONGC is also planning to establish a 1 million metric tonnes per annum (MMTPA) green ammonia plant in collaboration with a private player. The company is exploring options such as green renewable power or pumped hydro storage to produce environmentally friendly ammonia. Coastal areas are being considered as potential locations for setting up the plant, emphasizing ONGC's focus on sustainability and the utilization of renewable resources.

ONGC's Commitment to Fossil Fuel Production

Continued Importance of Fossil Fuels

While ONGC is actively pursuing its green energy transition to comply with Scope 1 and Scope 2 emission targets by 2038, the company acknowledges the ongoing significance of fossil fuels. Singh reiterates that fossil fuels will remain the base fuel until 2040. ONGC remains committed to expanding its oil and gas production and emphasizes its exploration activities currently underway.

Contribution to India's Energy Demand

ONGC anticipates contributing approximately 24% of India's demand for oil and gas by the end of FY24. With ONGC Videsh Ltd. expected to return to its projected production levels, the company aims to reach 16 million tonnes in FY24, accounting for the loss incurred in FY23 due to the Russia-Ukraine war. Combining OVL production with conservative estimates of ONGC's domestic production, the company's output will constitute a significant portion of India's total energy demand.

Conclusion 

ONGC unveils its ambitious plans to invest in green energy, including solar and wind power capacities, as well as a green ammonia plant. Simultaneously, the company emphasizes its commitment to fossil fuel production until 2040, highlighting its role in meeting India's energy demands. ONGC's comprehensive approach showcases its dedication to sustainable development while acknowledging the evolving energy landscape.

ONGC's green energy initiatives represent a significant shift towards renewable sources, reflecting the company's recognition of the need to address climate change and reduce carbon emissions. By investing in five gigawatts of solar generation capacity and exploring opportunities for wind power expansion, ONGC aims to contribute to India's renewable energy targets and foster a cleaner and more sustainable energy mix.

The establishment of a 1 MMTPA green ammonia plant further exemplifies ONGC's commitment to sustainable production. Green ammonia, produced using renewable energy sources, holds immense potential as a clean and versatile energy carrier. By leveraging either green renewable power or pumped hydro storage methods, ONGC seeks to produce green ammonia while minimizing its environmental impact. The consideration of coastal areas for the plant's location demonstrates ONGC's focus on utilizing regional advantages and optimizing resources.

While ONGC embraces the transition towards renewable energy, it also recognizes the continued importance of fossil fuels in meeting India's energy demands. The company's commitment to expanding its oil and gas production and the ongoing exploration activities underline its dedication to ensuring energy security and supporting the nation's growth. ONGC's projected contribution of approximately 24% to India's oil and gas demand by the end of FY24 demonstrates its pivotal role in the country's energy landscape.

ONGC's comprehensive approach to energy transition aligns with global sustainability goals and underscores the company's vision for a greener and more resilient future. By combining investments in green energy with responsible fossil fuel production, ONGC aims to strike a balance between environmental stewardship and meeting the immediate energy needs of a growing economy.

As ONGC embarks on this transformative journey, it is poised to play a crucial role in shaping India's energy sector, driving innovation, and contributing to a sustainable and prosperous future for the nation.