ONGC to setup a new subsidiary for its gas business and clean energy projects
The public sector firm has asserted the approval of the Ministry of Petroleum and Natural Gas for the formation of a wholly–owned subsidiary company for the mentioned green projects and subsequently entertaining to bring fossil substitutions.
New Delhi: The Oil refinery public sector unit, Oil and Natural Gas Corporation (ONGC) is going to set up a new subsidiary unit to accommodate its gas business and clean energy projects such as green hydrogen.
The public sector firm has asserted the approval of the Ministry of Petroleum and Natural Gas for the formation of a wholly–owned subsidiary company for the mentioned green projects and subsequently entertaining to bring fossil substitutions.
The name of the new subsidiary is claimed to be ONGC Green Limited, which is subject to seeking the approval of the Ministry of Corporate Affairs. The company has also stated that the board has accorded in-principle approval for the formation of a joint venture company either directly or through an affiliation with NTPC Green Energy Ltd, a wholly-owned subsidiary of NTPC Ltd.
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The company has stated the joint venture company shall be engaged in the business of offshore wind energy and other renewable energy and will be value for value-chains of energy business such as green hydrogen, hydrogen blending, renewable energy, biofuels/ biogas business and LNG, ONGC.
The incumbent firm is planning to spend Rs 1 lakh crore on installing 10 GW of renewable energy capacity and setting up two million tonnes of green ammonia annual production capacity by 2035 as part of its decarbonisation strategy.
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The company is aiming, meanwhile, to add 10 GW of renewable power to its portfolio by 2040.
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