FILE PHOTO: A technician is pictured inside a desalter plant of Oil and Natural Gas Corp (ONGC) on the outskirts of Ahmedabad, India, September 30, 2016. REUTERS/Amit Dave/File Photo
| Photo Credit: AMIT DAVE

State-owned Oil and Natural Gas Corporation (ONGC) will invest about ₹2 lakh crore in setting up renewable energy sites and green hydrogen plants and cutting gas flaring to zero to achieve its 2038 net-zero carbon emission goal.

The company, which produces about two-thirds of India’s crude oil and about 58% of natural gas, on July 9 released a 200-page document, detailing its path to achieving net zero emissions.

It listed clean energy projects even as it looks to boost its hydrocarbon output to meet the country’s energy needs.

ONGC will invest ₹97,000 crore by 2030 in setting up 5 gigawatts of renewable energy capacity, green hydrogen, biogas, pump storage plant and offshore wind project, according to the document.

Another ₹65,500 crore will be invested by 2035, mostly in a green hydrogen or green ammonia plant, and the remaining ₹38,000 crore by 2038, primarily in setting up 1 GW of offshore wind projects.

These projects will help the firm offset 9 million tonnes of carbon emissions it is directly (Scope-1 emissions) or indirectly (Scope-2 emissions) responsible for.

ONGC said it will invest ₹5,000 crore to cut gas flaring to zero by 2030 through technological intervention. The firm released into the atmosphere 554 million cubic metres of methane in 2021-22 (base year), mostly because it was an incidental by-product of oil or the quantity was not economical enough to pipe it to consumers.

ONGC will spend ₹30,000 crore in setting up 5 GW solar parks that will convert sunlight into electricity and turbines that will do the same with wind energy. It will add 1 GW of solar and onshore wind capacity by 2035 and 2038 at a cost of ₹5,000 crore each.

It will invest ₹40,000 crore by 2030 and a similar amount by 2035 to set up two 1,80,000 tonnes per annum green hydrogen and/or 1 million tonnes of green ammonia projects.

ONGC, which has installations in the Arabian Sea and Bay of Bengal to produce oil and gas from below the seabed, is also looking at installing offshore wind turbines to generate 0.5 GW of electricity by 2030 and double it by 2035. The first 0.5 GW offshore wind project is likely to cost ₹12,500 crore and the next about Rs 12,000 crore.

By 2038, it will add another 1 GW of offshore wind energy capacity at an investment of ₹25,000 crore, the document said.

The company is also looking at investing ₹20,000 crore for setting up 3 GW of pump storage plants to meet electricity requirements when renewable sources like sunlight and wind energy are not available.

The remaining investment will be in biogas, carbon capture and other clean energy projects. All this while it continues to hunt and produce more oil and gas.

Crude oil, which companies like ONGC pump out from below the seabed and from underground reservoirs, is a primary source of energy. It is processed in oil refineries to produce petrol, diesel and jet fuel. With the world looking to transition away from fossil fuels, companies around the globe are looking at new avenues to use crude oil.

Gas produced in a similar fashion is used to generate electricity, produce fertiliser or convert into CNG to power automobiles or into PNG to fire kitchen stoves.

Scope 1 emissions are from directly emitting sources that are owned or controlled by a company. Scope 2 emissions are from the consumption of purchased electricity, steam, or other sources of energy generated upstream from a company’s direct operations.

ONGC produced 21.14 million tonnes of oil in 2023-24 (April 2023 to March 2024) and 20.648 billion cubic metres (bcm) of gas.

New Delhi:

Adani Group on Thursday said it has formed a 50:50 joint venture with Japanese conglomerate Kowa Group for sale of green hydrogen in Japan, Taiwan and Hawaii markets.

Billionaire Gautam Adani-led conglomerate is investing up to USD 50 billion over the next 10 years in setting up a fully integrated green hydrogen ecosystem in India. This includes the production of 1 million tonne of green hydrogen in the initial phase which will be ramped up to 3 million tonne later.

“Adani Global Pte Ltd, Singapore, a step-down wholly owned subsidiary of Adani Enterprises Ltd, announced a 50:50 joint venture (JV) with Kowa Holdings Asia Pte Ltd, Singapore for sales and marketing of green ammonia, green hydrogen and its derivatives. The JV will concentrate on marketing of products in Japan, Taiwan and Hawaii,” the group said in a statement.

Hydrogen is a clean energy source. It is mainly used in the refining and chemical sectors and produced using fossil fuels such as coal and natural gas. Green hydrogen is produced by using electricity from renewable sources such as solar, to power an electrolyzer that splits the hydrogen from water molecules.

Adani already is the largest renewable energy producer and for the green hydrogen project, it plans to expand its solar module manufacturing capabilities at Mundra SEZ in Gujarat to up to 10 GW per annum. The Mundra factory would manufacture metallurgical grade (mg) silicon, polysilicon, ingots, wafers, cells and the module itself that are used to generate electricity from solar energy.

Sea water will be desalinated before using its electrolyzers to produce low-cost green hydrogen.

“The JV with Kowa for green hydrogen marketing is a natural and strategic extension of Adani Group’s long-standing marketing and trading relationship with Kowa,” the statement said.

Adani New Industries Ltd (ANIL), the green hydrogen platform of Adani Group, is developing end-to-end solutions to produce globally competitive green hydrogen and its associated sustainable derivatives at scale.

“The first project of ANIL of 1 million metric tonne per annum (MMTPA) green hydrogen is being implemented in phases in Gujarat. The initial phase is expected to start production by FY2027. Depending on market conditions, ANIL aims to increase capacity to up to 3 MMTPA of green hydrogen in the next 10 years, with an investment of about USD 50 billion,” it said.

After hydrogen is produced, it can either be transported directly (which is a risky and costly affair) or converted to ammonia, often referred to as ‘green ammonia’.

Clean hydrogen can help decarbonise a range of sectors, including long-haul transport, chemicals, and iron and steel, where it has proven difficult to reduce emissions. Hydrogen-powered vehicles would improve air quality and promote energy security as it produces just water on being burnt in an engine.

ANIL is a wholly-owned subsidiary of the group’s flagship Adani Enterprises Limited (AEL).

“ANIL’s strategy is focused on development of an integrated hydrogen ecosystem with three business streams – manufacturing of supply chain products (i.e. solar- polysilicon, ingot, wafer, cell & module, wind turbine generator, electrolyzers and ancillary items), green hydrogen generation, and production of downstream derivative products (i.e. green ammonia, green methanol, sustainable aviation fuel and others),” the statement said.

The combined strength of Adani Group’s experience in renewable equipment manufacturing, setting up large scale generation projects, building grid infrastructure, and proven project execution capabilities gives it a significant competitive advantage while building the green hydrogen ecosystem in India, it said.

“ANIL is well positioned to realise its targets and provide green molecules and sustainable fuels at globally competitive cost. Mundra ports’ proximity to global supply chain enables export opportunity of green hydrogen and derivatives, especially considering availability of jetty for shipment of cryogenic products,” it added. PTI ANZ ANZ ANU ANU

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)