ONGC, NTPC Green tie up for domestic and international renewable energy projects

State-run Oil and Natural Gas Corporation (ONGC) on Tuesday inked a memorandum of understanding (MoU) with NTPC Green Energy Limited (NGEL) to develop renewable energy projects.

A statement from ONGC said that the MoU will primarily explore the feasibility and setting up of renewable energy projects in various domains.

It envisages collaboration of the two mega entities in renewable power projects in India and overseas through offshore wind projects and exploring opportunities in the storage, e-mobility, carbon credits and green credits, nuclear, green hydrogen business and its derivatives including green ammonia and green methanol.

In another development, ONGC on Tuesday also announced that it has inked the crude oil sales agreement (COSA) with Mangalore Refinery and Petrochemicals Limited (MRPL) which is the largest single-location PSU refinery in the country.

The agreement has been signed by the two entities for the sale and purchase of crude oil. The current agreement between ONGC and MRPL will be applicable till March 31, 2024.

Over the years ONGC, apart from its core exploration and production business, has diversified its business in petrochemicals, power, and SEZ development through joint venture routes. Going forward into diversification, ONGC has taken initiatives for renewable energy power generation and installed around 189 MW capacity including wind and solar PV plants spread across various locations, said the company statement.

The oil and gas major intends to achieve 10 GW renewable energy capacity by 2030 and has set a net zero target including both scope 1 and scope 2 by 2038.

The state-run company plans to invest about ₹2 trillion in energy transition till 2038, said its CMD Arun Kumar Singh last month. The company had earlier announced to invest ₹1 trillion in energy transition initiatives by 2030.

There are also plans to set up 25 compressed biogas (CBG) plants by FY26.

The CMD had said that it makes strong economic sense to invest in green initiatives with a carbon market in the making. ONGC has already signed a deal to set up 5 GW of solar power capacity in Rajasthan and is scouting to add another 5 GW of renewable energy capacity.

Shares of ONGC on the BSE closed at ₹187.25, lower by 0.27% from its previous close.