India's ONGC Eyes 100-Fold Growth in Clean Energy Spend

India’s Oil and Natural Gas Corporation (ONGC) is making ambitious plans to significantly expand its investment in clean energy. The goal is to increase the company's spending on projects such as solar and wind energy by a hundredfold by the end of this decade. This initiative is part of ONGC’s broader aim to reduce its carbon footprint and contribute to India’s transition toward a more sustainable energy future.

Investment Goals

ONGC intends to invest around 1 trillion rupees, equivalent to approximately $11.5 billion, by 2030. This investment will help the company to establish a renewables portfolio targeting a capacity of 10 gigawatts. In contrast, the company only allocated 10 billion rupees in the current fiscal year for similar projects, marking a dramatic increase in their commitment.

Rationale for Transition

Vivek Chandrakant Tongaonkar, ONGC’s finance director, noted that the shift towards green energy is driven by India’s growing energy needs alongside fossil fuels. Tongaonkar emphasized that venturing into renewable sources of energy is a logical step for the company as it seeks to balance energy production with environmental responsibilities.

Comparisons with Global Trends

While many international oil and gas companies are pulling back on investments in clean energy due to concerns about profitability and shareholder pressures, ONGC is opting for a different path. The aim is to ensure energy security for India, which boasts the world’s largest and fastest-growing population.

Project Highlights

Currently, ONGC has about 193 megawatts of renewable energy generation through solar and wind disciplines. The company plans to expand this by funding additional projects, including 25 biogas plants, several hydroelectric projects, and a production capacity of 1 million tons of green ammonia along with 180,000 tons of green hydrogen.

Current Developments

The company has already issued a tender for the construction of 1 gigawatt of combined solar and wind power capacity. In addition, ONGC is actively seeking opportunities to acquire existing renewable energy plants to expedite its capacity expansion.

Financial Strategy

ONGC is in a solid financial position due to the cash flows generated from its oil and gas operations, which will help fund its transition into clean energy. The company is also considering raising debt to finance these upcoming projects.

India, Energy, Investment