ONGC commits $10 bn by 2030 for a greener future

Oil and Natural Gas Corp. Ltd (ONGC) plans to invest up to ₹1 trillion (about $10 billion) in green energy initiatives and scale up with its renewable portfolio to 10GW by 2030, the state-run company said.

The oil explorer is looking for tie-ups to leverage low-carbon energy opportunities, including renewables, green hydrogen, green ammonia, and other derivatives of green hydrogen, it said in a statement.

ONGC said it has “crafted a robust roadmap to scale up its low-carbon energy portfolio significantly”, and added that it is planning to set up two green-field oil-to-chemical plants in India.

While there is an increasing focus on research and development in carbon capture, utilization, and storage technologies to mitigate emissions from existing processes, the company said, oil and gas exploration and production (E&P) will remain the cornerstone of its energy business.

Explaining its carbon-reduction strategies, ONGC said, “Integrating sustainable practices into core operations have enabled a reduction in Scope-1 and Scope-2 emissions by 17% in the last five years.”

Scope-1 refers to direct release of emissions from sources owned or controlled by the company, such as burning fuel in vehicles or furnaces. Scope-2 involves the indirect release from using purchased energy such as electricity in the company’s facilities.

“ONGC has reduced its emissions by 2.66% in FY23 and plans to significantly increase its spending on green initiatives to reduce its carbon footprint as a broader effort to achieve net-zero for Scope-1 and Scope-2 emissions by 2038,” it said.

The company said that under its ‘Future Exploration Strategy’, it has set up an ambitious target to bring 500,000 sq. km under active exploration by acquiring 100,000 sq. km every year, spending ₹10,000 crore annually on exploration by 2025.

“ONGC is dynamically evolving to meet changing realities. While maintaining our immediate focus on E&P, we are also crafting a future-ready ONGC that exemplifies resilience, agility, and adaptability,” the statement said.