The state-run Oil and Natural Gas Corporation (ONGC) has taken a significant step towards renewable energy expansion by signing a memorandum of understanding (MoU) with NTPC Green Energy Limited (NGEL). The MoU, announced on Tuesday, aims to explore and develop renewable energy projects across various domains.
According to ONGC, this collaboration between the two major entities envisions their participation in renewable power projects, not only in India but also internationally. The projects will encompass offshore wind initiatives and explore opportunities in storage solutions, e-mobility, carbon credits, green credits, nuclear energy, green hydrogen production, and its derivatives, including green ammonia and green methanol.
In another development, ONGC has also revealed a crude oil sales agreement (COSA) with Mangalore Refinery and Petrochemicals Limited (MRPL), the largest single-location PSU refinery in India. This agreement pertains to the sale and purchase of crude oil and will remain in effect until March 31, 2024.
ONGC, traditionally known for its core exploration and production activities, has been diversifying its business interests in petrochemicals, power generation, and SEZ development through joint ventures. As part of its diversification strategy, ONGC has already installed approximately 189 MW of renewable energy capacity, including wind and solar PV plants at various locations.
The company has set an ambitious target to achieve 10 GW of renewable energy capacity by 2030 and is committed to achieving a net-zero carbon footprint by 2038, encompassing both scope 1 and scope 2 emissions. To support these endeavors, ONGC plans to invest about ₹2 trillion in energy transition initiatives by 2038, as announced by its CMD Arun Kumar Singh.
Furthermore, ONGC is actively engaging in the emerging carbon market, having already secured a deal to establish 5 GW of solar power capacity in Rajasthan and exploring opportunities to add an additional 5 GW of renewable energy capacity.
ONGC’s shares on the BSE closed at ₹187.25, marking a marginal decrease of 0.27% compared to the previous close. The company’s strategic diversification into renewable energy and its commitment to sustainability align with the global shift towards cleaner and greener energy solutions.
