ONGC commits Rs 2 Lakh crore for carbon neutrality – EQ
The company is poised to expand its presence in renewable energy and green hydrogen initiatives, marking a significant shift in its long-term strategy.
State-owned Oil and Natural Gas Corporation (ONGC) has unveiled an ambitious plan to invest Rs 1 lakh crore by the end of the decade to propel its transition towards a low-carbon energy landscape. The company is poised to expand its presence in renewable energy and green hydrogen initiatives, marking a significant shift in its long-term strategy.
The company’s transformation strategy envisions a comprehensive roadmap to elevate its low-carbon energy portfolio to a substantial scale. By aligning itself with India’s aggressive emission reduction targets, ONGC aims to contribute to the nation’s goals of reducing carbon emissions by 1 billion tonnes and decreasing carbon intensity by 45 % by 2030.
Years of dedicated efforts have led to notable emission reductions. Scope-1 and Scope-2 emissions have seen a 17 % decrease over five years, while a 2.66 % emission reduction was achieved in FY23.
ONGC is committed to furthering its environmental efforts by intensifying investments in green initiatives, with the ultimate aim of achieving net-zero emissions for the Scope-1 and Scope-2 categories by 2038.
The company is actively forging collaborations with prominent players in the energy sector to capitalize on opportunities in renewables, green hydrogen, green ammonia, and other derivatives of green hydrogen. Plans are underway for the establishment of two green-field O2C (Oil to Chemicals) plants within India, with more details to be revealed. ONGC’s forward-looking approach encompasses research and development into carbon capture, utilization, and storage (CCUS) technologies, which play a pivotal role in mitigating emissions from existing processes.
While the focus on oil and gas exploration and production remains integral to ONGC’s energy business, the company is embracing a transformative vision for the future. Under its ‘Future Exploration Strategy,’ ONGC has set forth an ambitious goal to expand active exploration to cover 5 lakh square kilometers, acquiring one lakh square kilometers annually and dedicating Rs 10,000 crore per year to exploration by 2025.
