Oil and Natural Gas Corporation (ONGC) will set up a new unit to house its gas business and clean energy projects such as green hydrogen, as it looks to fast-track foray into new areas.
[Representational Photo : iStock]
Oil and Natural Gas Corporation (ONGC) will set up a new unit to house its gas business and clean energy projects such as green hydrogen, as it looks to fast-track foray into new areas.
In a stock exchange filing, the public sector firm said that last month it received approval of the Ministry of Petroleum and Natural Gas for the formation of a wholly-owned subsidiary company for gas business and clean energy projects.
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“The proposed name of the company is ‘ONGC Green Limited’ subject to approval of the Ministry of Corporate Affairs, Government of India,” the company said.
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The company board at its meeting on Tuesday approved the formation of the wholly-owned subsidiary for green energy and gas business.
It plans 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.
ONGC said the wholly-owned subsidiary company will be for value-chains of energy business such as green hydrogen, hydrogen blending, renewable energy, biofuels/biogas business and LNG.
The company also said in its filing that its board has accorded in-principle approval for formation of a joint venture company either directly or through an affiliate with NTPC Green Energy Ltd.
“The said joint venture company shall be engaged into the business of offshore wind energy and other renewal energy,” it said.
Notably, the state-owned company has a renewable portfolio of 176 MW comprising 153 MW wind power and 23 MW of solar. It is aiming to add 10 gigawatt of renewable power to its portfolio by 2040.
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