ONGC's Shift Towards Green Energy: Investing in Solar and Green Hydrogen Plants
Key Ideas
- ONGC prioritizes green energy investments with a focus on solar energy priced attractively at ₹2 per kWh compared to fossil fuels at ₹10 per kWh.
- The company is committed to eliminating methane emissions and avoidable flaring as a COP 28 signatory, allocating ₹1 lakh crore for green energy investments by 2030 and planning green hydrogen plants by 2030 if feasible.
- ONGC plans to boost oil production this year through enhanced resource utilization, including AI interventions, and expanding output from existing oilfields and new wells.
- Despite a recent production dip, ONGC's new oil well in Krishna-Godavari basin is gradually ramping up to produce 1,100 barrels of oil per day, with gas from new wells poised to fetch 12% of crude prices.
The Oil and Natural Gas Corporation (ONGC) in India is making significant strides towards green energy by investing in solar energy and potentially green hydrogen plants. Describing solar energy as a cost-effective alternative, ONGC aims to reduce methane emissions and avoidable flaring in line with its COP 28 commitments. With a substantial investment of ₹1 lakh crore earmarked for green energy by 2030, ONGC plans to allocate a portion of these funds towards green hydrogen plants between 2028 and 2030, contingent on market viability. The company is also leveraging digitalization and AI interventions to optimize oil and gas production. Despite a temporary decline in production, ONGC is gearing up to increase oil production by focusing on existing fields and new wells, exemplified by the recent opening of a fifth oil well in Krishna-Godavari basin. ONGC's gas production, set at 15 BCM, is expected to benefit from new wells capturing 12% of crude prices. The company commended government policies supporting elevated oil production to counter natural declines, while anticipating potential changes in gas allocation policies. Additionally, while ONGC is not constructing small LNG plants, Indian Oil Corporation Ltd (IOCL) is exploring this possibility to facilitate the transport of ONGC's gas production to the market.
Topics
Green Hydrogen
Renewable Energy
Government Policies
Technology
Sustainability
Market Trends
Investments
Oil And Gas Production
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