ONGC to invest Rs 2 lakh crore to meet net-zero emissions goal

ONGC aims to invest $12.08 billion by 2030 to own 10 gigawatts of renewable energy capacity. The company is currently constructing a 5 gigawatts solar energy project and has plans for offshore wind energy plants. ONGC is also exploring collaborations for low-carbon energy opportunities such as renewables, green hydrogen, and green ammonia.

ET Bureau

Updated On Aug 30, 2023 at 08:54 AM IST

Oil and Natural Gas Corporation (ONGC) will need to invest Rs 2 lakh crore to reach its net zero emissions target by 2038, said its chairman Arun Singh.

Half of the required Rs 2 lakh crore investment will be made by 2030, Singh said on Tuesday, adding that funding these projects won't be difficult as the company has very low debt levels and can access green bonds where cost of borrowing is much lower than others.

The company plans to invest in a range of green projects, including green ammonia, hydrogen, solar and offshore wind.

ONGC will begin oil production from its KG basin field from October, said Pankaj Kumar, director (offshore).

The company is yet to receive about $130 million of dividend from its Russian projects, said ONGC Videsh managing director Rajarshi Gupta. Most of these dividends will be used in ONGC's project expenditure in Russia itself, he said.

Force majeure at the ONGC's mega gas project in Mozambique may end “anytime this year”, Gupta said. ONGC-led Indian consortium of oil companies has a 30% stake in Mozambique field, which is operated by France's Total.