ONGC to invest Rs 2 lakh cr to meet net zero carbon emission target

State-owned Oil and Natural Gas Corporation (ONGC) will invest about Rs 2 lakh crore in setting up renewable energy sites and green hydrogen plants and cutting gas flaring to zero to achieve its 2038 net-zero carbon emission goal.

The Oil PSU has released a 200-page document, detailing its path to achieving net zero emissions.

ONGC plans to invest Rs 97,000 crore by 2030 to establish 5 gigawatts of renewable energy capacity, green hydrogen, biogas, a pump storage plant, and an offshore wind project. An additional Rs 65,500 crore will be invested by 2035, mainly in a green hydrogen or green ammonia plant, and the remaining Rs 38,000 crore by 2038, primarily for setting up 1 GW of offshore wind projects.

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These projects will help the firm offset 9 million tonnes of carbon emissions it is directly (Scope-1 emissions) or indirectly (Scope-2 emissions) responsible for. ONGC said it will invest Rs 5,000 crore to cut gas flaring to zero by 2030 through technological intervention.

The company emitted 554 million cubic meters of methane into the atmosphere in 2021-22 (base year). This was primarily due to incidental oil by-products and uneconomical distribution to consumers.

ONGC will spend Rs 30,000 crore in setting up 5 GW solar parks that will convert sunlight into electricity and turbines that will do the same with wind energy. It will add 1 GW of solar and onshore wind capacity by 2035 and 2038 at Rs 5,000 crore each.

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It will invest Rs 40,000 crore by 2030 and a similar amount by 2035 to set up two 1,80,000 tonnes per annum green hydrogen and/or 1 million tonnes of green ammonia projects.

ONGC, which has installations in the Arabian Sea and Bay of Bengal to produce oil and gas from below the seabed, is also looking at installing offshore wind turbines to generate 0.5 GW of electricity by 2030 and double it by 2035. The first 0.5 GW offshore wind project is likely to cost Rs 12,500 crore and the next about Rs 12,000 crore.

By 2038, it will add another 1 GW of offshore wind energy capacity at an investment of Rs 25,000 crore, the document said. The company is also looking at investing Rs 20,000 crore for setting up 3 GW of pump storage plants to meet electricity requirements when renewable sources like sunlight and wind energy are not available. The remaining investment will be in biogas, carbon capture and other clean energy projects.

 

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