ONGC Green pioneering India’s power transition

New Delhi: Established as a wholly owned subsidiary of state-owned Oil & Natural Gas Corporation (ONGC), ONGC Green Ltd is at the forefront of power transformation as India accelerates its transition toward renewable energy. The company is focused on achieving 10 GW of renewable energy capacity by 2030 while exploring innovative solutions in green hydrogen, compressed biogas, solar, and wind energy.

In an exclusive interview with the Millennium Post, Sanjay Kumar Mazumder, CEO of ONGC Green Ltd, discussed the company’s strategic vision, its role in reducing carbon emissions, and how it plans to evolve from being a national oil company to a national energy company.

What are the key initiatives under ONGC Green, and how do they align with India’s renewable energy goals?

ONGC Green Limited has been established to support India’s renewable energy goals by committing to 10 gigawatts (GW) of renewable power as part of its Energy Vision 2040. The company aims to achieve this target by 2030 through a diverse portfolio that includes solar, wind, compressed biogas, green hydrogen, and green ammonia. To ensure a structured transition, ONGC Green has categorized its initiatives into three phases, with an initial focus on mature and low-risk renewable technologies such as solar and wind energy. Recognizing the growing need for advanced solutions, the company is also exploring solar energy with integrated storage for enhanced efficiency and reliability.

ONGC Green is pursuing both organic and inorganic growth strategies to accelerate progress. While organic expansion takes time, strategic acquisitions enable rapid scaling. The company has recently signed Share Purchase Agreements with Ayana and PT Synergy, with the latter deal expected to close by the end of FY25.

How is ONGC leveraging green hydrogen, solar, and wind energy to transition toward sustainable energy solutions?

ONGC Green is leveraging green hydrogen, solar, and wind energy to drive its transition toward sustainable energy solutions. In line with India’s target of producing 5 million tonnes (MT) of green hydrogen by 2030, ONGC Green is adopting a strategic and measured approach to this sector. The high production cost—currently around $6–7 per kg, more than double that of grey hydrogen—combined with an uncertain market for off-takers, presents a challenge for large-scale investments.

To build expertise and assess commercial viability, ONGC Green is undertaking pilot projects in green hydrogen production. One such project is being developed in Nandasar, while another is underway in Tathapaka. Once these pilots demonstrate scalability, ONGC Green will take over their full implementation. Unlike refineries and steel plants, ONGC does not have captive hydrogen requirements, so all production must be sold in the open market. In addition to green hydrogen, ONGC Green is focusing on solar and wind energy, prioritizing mature and low-risk technologies. The company is also exploring advanced solutions such as solar with integrated storage to enhance efficiency and ensure a stable supply of renewable power. These initiatives align with ONGC Green’s broader goal of accelerating India’s transition to a sustainable and cleaner energy future.

What role does ONGC Green play in reducing the company’s carbon footprint, and what are its long-term sustainability targets?

ONGC Green plays a crucial role in reducing ONGC’s carbon footprint by driving the company’s transition towards renewable energy. As part of ONGC’s sustainability strategy, the company has set a net-zero target for Scope 1 emissions by 2030 and Scope 2 emissions by 2038.

All carbon credits generated through ONGC Green’s renewable energy initiatives will be owned by the parent company and can be utilized either for offsetting emissions or for trading. The broader vision is to transform ONGC from a national oil company into a national energy company, ensuring that its growth is aligned with India’s long-term sustainability commitments and carbon reduction targets.

ONGC Green actively collaborates with various companies, government agencies, and international organizations to advance clean energy projects. Strategic partnerships play a crucial role in accelerating renewable energy adoption and leveraging complementary expertise. One key collaboration is with NTPC Green, where both companies are working together on acquisitions and future joint ventures.

Offshore wind energy is a major focus, with ONGC Green utilizing its offshore expertise while NTPC contributes its deep understanding of the power sector. Similarly, a MoU has been signed with NHPC to develop pumped hydro storage projects, capitalizing on NHPC’s experience in the hydro sector.

For emerging technologies like green hydrogen, ONGC Green is open to partnerships with companies specializing in production and securing off-takers. In the compressed biogas (CBG) sector, the company has a mandate to install 25 plants and is in advanced discussions with three to four partners to integrate technology and execution expertise. Additionally, ONGC Green has signed MoUs with Tata Power for battery storage solutions and with Power Grid for green hydrogen initiatives. These collaborations align with ONGC Green’s strategy of combining industry expertise, advanced technology, and strategic investments to drive India’s clean energy transition.

What is ONGC Green’s future projection in the renewable energy sector?

Our immediate commitment is 10 GW of renewable capacity by 2030, but we are confident that we can achieve this target by 2027–28. Beyond this, our growth will depend on market evolution and technology advancements. Pumped storage projects and green hydrogen will play a crucial role as the market matures. Over the next few months, we expect to announce major tenders for solar and battery storage projects. Our progress so far has been commendable, and as the CEO, I can confidently say that our appetite for growth is high.

What are the major challenges ONGC faces in its green energy transition, and how does it plan to overcome them?

ONGC views its green energy transition not as a challenge but as an opportunity to contribute to India’s growing energy needs sustainably. As a National Oil Company, ONGC has been a key player in fueling the country’s energy demands for decades. Now, through ONGC Green, the company aims to evolve into a National Energy Company by expanding its focus on renewable.

The transition comes with key hurdles such as high capital requirements, technology adoption, and market uncertainties.

However, ONGC Green is well-positioned to overcome these through its strong financial backing, proven execution capabilities, and strategic acquisitions. By acquiring renewable energy platforms, the company enhances both capacity and capability, ensuring rapid growth in the sector.

Additionally, collaborations with industry leaders and technology providers help ONGC Green stay ahead in the evolving clean energy landscape. With a clear vision, financial strength, and strategic partnerships, ONGC Green is confident in driving India’s sustainable energy future.

How would you summarize ONGC Green’s vision for the future?

ONGC Green envisions a future where it plays a pivotal role in India’s transition to clean energy. More than just an extension of ONGC, it represents a strategic shift towards sustainability, energy security, and innovation.

By investing in key renewable sectors, leveraging financial strength, and fostering strong partnerships, ONGC Green is well-positioned to lead India’s renewable energy transition.