ONGC’s Green Energy Subsidiary Approved by Ministry

The Ministry of Petroleum and Natural Gas has given its approval for the establishment of a subsidiary company by Oil and Natural Gas Corporation Limited (ONGC), focusing on green energy and gas ventures. The newly formed company, proposed to be named ONGC Green Limited, will engage in businesses related to green hydrogen, hydrogen blending, renewable energy including solar, wind and hybrid, bio-fuels and bio-gas business and LNG.

ONGC is India’s largest oil and gas producer and has been exploring new avenues of growth in the energy sector. The company has received the approval from the ministry on 5th December 2023, after announcing its intention to form a wholly-owned subsidiary company in February 2021. The formation of the subsidiary company is subject to the approval of the Ministry of Corporate Affairs, government of India.

The subsidiary company will leverage ONGC’s expertise and experience in the oil and gas sector, as well as its existing infrastructure and assets, to create value-added products and services in the green energy domain. The company will also collaborate with other stakeholders such as NTPC Green Energy Limited, with whom ONGC has received an in-principle approval to form a joint venture company for offshore wind energy and other renewable energy projects.

ONGC’s move to form a green energy subsidiary is in line with India’s ambitious commitments at COP26 held in 2021, where the country pledged to reach 500 GW of non-fossil electricity capacity, generate half of all energy requirements from renewables, reduce emissions by 1 billion tonnes by 2030, reduce the emissions intensity of GDP by 45 per cent, and achieve net-zero emissions by 2070.

ONGC’s green energy subsidiary is expected to play a significant role in India’s transition to a low-carbon economy and contribute to the country’s energy security and sustainability