ONGC backs its net zero goal with 2 tn

The firm is charting a roadmap for opportunities in renewables and low-carbon sector, ONGC chairman Arun Kumar Singh said.
The firm is charting a roadmap for opportunities in renewables and low-carbon sector, ONGC chairman Arun Kumar Singh said.

Summary

  • Chairman and CEO Arun Kumar Singh says the firm is focussing on many aspects of energy transition

State-owned ONGC plans to invest around 2 trillion towards its energy transition efforts until 2038, said chairman and chief executive Arun Kumar Singh.

At a press briefing following its annual general meeting, Singh said it is focussing on many aspects of energy transition, including green hydrogen, offshore endeavors, and solar initiatives. The company had announced its plans to invest 1 trillion over the next seven years on energy transition initiatives. “We announced scope 1 and scope 2 transitions by 2038. It requires 2 trillion. 1 trillion will be (invested) by 2030 and it has various parts. Primarily initial expenditure will be to reduce the Scope 1 first and then we go to Scope 2. So there are two parts."

“It has all the components, from green ammonia to solar and hydrogen. It has PSP and then you have offshore. Everything is there," he added.

Addressing the shareholders, he said the firm is charting a roadmap for opportunities in renewables and low-carbon sectors and plans to scale up its renewable portfolio to 10 GW by 2030.

“ONGC is actively exploring collaborations with leading players to leverage various low carbon energy opportunities including renewables, green hydrogen, green ammonia and derivatives of green hydrogen. Moreover, there’s increasing focus on research and development in carbon capture, utilization, and storage technologies to mitigate emissions from the existing processes."

ONGC signed a deal to establish a 5 GW solar power plant in Rajasthan and is scouting for another 5 GW of renewable energy capacity. It also plans to have 25 compressed bio gas plants by FY26. “It makes a strong economic sense in investing in green initiatives with a carbon market in the making."

That said, the company will continue to focus on conventional hydrocarbon exploration and production business. “ONGC has enough financial muscle to carry India’s energy story and the transition story simultaneously for the next 5-10 years," he said.

Further, company officials also informed that the production level of Sakhalin-1, where ONGC Videsh Ltd (OVL) has stake, has reached the level of about 180,000 barrels per day, close to pre-crisis production level of about 200,000 barrels per day.

In case of Mozambique, where OVL is executing its largest project, security situation has continued to improve and construction boots are on the ground. The company expects revocation of force majeure anytime this fiscal.

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