ONGC commits ₹2 Lakh Crore investment for Net-Zero emissions by 2038

10 Jul 2024 , 09:29 AM

State-owned Oil and Natural Gas Corporation (ONGC) plans to invest approximately ₹2 lakh Crore to achieve net-zero carbon emissions by 2038, focusing on renewable energy and green hydrogen initiatives.

ONGC, responsible for two-thirds of India’s crude oil and 58% of natural gas production, outlined its strategy in a detailed 200-page document released on Tuesday. The company aims to enhance its hydrocarbon output while implementing clean energy projects to meet national energy demands.

At the time of writing on July 10, 2024 at 9:27 am shares of ONGC is trading at ₹297 which is a 0.17% surge than the previous close. The stock has gained a total of 83% in the last one year, and 45% since the beginning of the year.

By 2030, ONGC will invest ₹97,000 Crore to establish 5 gigawatts of renewable energy capacity, green hydrogen, biogas, pump storage plants, and offshore wind projects.

An additional ₹65,500 Crore will be allocated by 2035, primarily for green hydrogen and green ammonia facilities, with ₹38,000 Crore earmarked by 2038 for 1 gigawatt of offshore wind projects.

These initiatives aim to offset 9 million tonnes of carbon emissions (Scope-1 and Scope-2) generated directly or indirectly by ONGC.

ONGC plans to invest ₹5,000 Crore by 2030 to eliminate gas flaring through advanced technology, addressing methane emissions. The company will also invest ₹30,000 Crore to develop 5 gigawatts of solar parks and 1 gigawatt each of solar and onshore wind capacity by 2035 and 2038, respectively, at a cost of ₹5,000 Crore each.

By 2030 and 2035, ONGC will invest ₹40,000 Crore each to establish green hydrogen and green ammonia projects, totaling 1,80,000 tonnes per annum.

ONGC aims to install 0.5 gigawatts of offshore wind turbines by 2030 and double capacity by 2035, with an estimated investment of ₹12,500 Crore for the first phase and ₹12,000 Crore for subsequent phases.

Additionally, the company plans to invest ₹20,000 Crore in pump storage plants by 2030 to ensure electricity availability during periods of low renewable energy production.

ONGC will also explore investments in biogas, carbon capture, and other clean energy projects, alongside its ongoing oil and gas exploration activities.

In 2023-24, ONGC produced 21.14 million tonnes of oil and 20.648 billion cubic metres (bcm) of gas, supporting various energy sectors including refining, electricity generation, and transportation fuels.