ONGC's recent 2 lakh crore investment in renewable energy and green hydrogen projects aligns with India’s broader climate objectives. During his last tenure, Prime Minister Modi announced India's commitment to achieving Net Zero emissions by 2070 at the COP26 summit in Glasgow. This ambitious target necessitates transitioning from fossil fuels to renewable energy sources, and we look at ONGC's recent investment as a crucial component of this transition.
Rationale of the Investment
Renewable Energy Capacity: ONGC's commitment to adding 5 GW of renewable energy capacity by 2030 and an additional 1 GW by 2038 directly supports the government's target of 450 GW of renewable energy capacity by 2030. This includes solar and wind energy investment, which are critical gears of India's renewable energy strategy.
Green Hydrogen and Ammonia Projects: The massive investment in green hydrogen and ammonia projects align with the National Hydrogen Mission, launched in 2021, which aims to make India a global hub for green hydrogen production and export.
Key Measures
The planned offset of 9 million tonnes of carbon emissions through renewable energy and green hydrogen projects will lower ONGC's carbon footprint, contributing to the national goal of reducing greenhouse gas emissions. Further, by addressing direct (Scope 1) and indirect (Scope 2) emissions, ONGC intends to ensure comprehensive reduction strategies, which are equally important for our fight against climate change and sustainability.
Lowering Carbon Emissions
ONGC’s goal of achieving net-zero carbon emissions by 2038 through various clean energy projects contributes to the national agenda of reducing carbon intensity. This is essential for meeting India’s commitments under the Paris Agreement, which includes reducing emissions intensity of GDP by 33-35% from 2005 levels by 2030.
Intervention of Technology to Eliminate Gas Flaring
The Investment of Rs 5,000 crore to cut gas flaring to zero by 2030 reflects a strategic move to improve environmental performance. Gas flaring is a significant source of methane emissions, potent greenhouse gases with a global warming potential significantly higher than carbon dioxide.
Integration of Offshore Wind Energy
Investing in offshore wind turbines to generate 0.5 GW of electricity by 2030 and doubling it by 2035 is a strategic step towards leveraging India’s vast coastline for renewable energy production.
Contribution to the National Hydrogen Mission
The National Hydrogen Mission aims to produce 5 million tonnes of green hydrogen annually by 2030, reducing dependence on fossil fuels and promoting clean energy alternatives. We strongly believe that ONGC’s investment in green hydrogen will play a crucial role in achieving these targets.
Economic and Employment Opportunities
The transition to renewable energy and green hydrogen will generate significant economic and employment opportunities. The renewable energy sector is labour-intensive, and large-scale projects will create more and more jobs in manufacturing, installation, and maintenance.
Linkage with Modi 3.0 Government’s Stance, Plans and Vision
First of all, India is a signatory to the Global Methane Pledge, which aims to reduce global methane emissions by 30% from 2020 by 2030. ONGC's efforts to eliminate gas flaring directly support this pledge, enhancing India's credibility in global climate initiatives. Secondly, the Ministry of New and Renewable Energy (MNRE) has outlined policies to promote offshore wind energy, with a potential target of 30 GW by 2030. ONGC's projects align with this policy, contributing to India's energy mix diversification. Thirdly, as discussed above, government’s vision of a green economy includes creating millions of jobs in the renewable energy sector, supporting economic growth, and enhancing livelihoods. ONGC’s projects will contribute to this vision by providing employment and fostering sustainable development.
Conclusion
ONGC's comprehensive investment strategy in renewable energy, green hydrogen, and technological advancements to reduce emissions aligns with the Indian government's net-zero initiatives. These efforts are pivotal for achieving India's climate goals, enhancing energy security, and promoting sustainable economic growth. Integrating these projects will mitigate environmental impacts and position India as a leader in the global clean energy transition. As a strategic example for other industries and organizations, ONGC's investment in renewable energy and green hydrogen can catalyse the overall decarbonisation of the Indian economy, helping the country meet its ambitious climate targets. The global shift towards net-zero emissions linked with government support, indicates that India's transition to a low-carbon future is well-achievable, with ONGC playing a major role.
Kishore is an alumnus of XISS and holds a doctorate in Strategic CSR from Santiniketan. Vyas is an alumna of XIM-B. The authors work for HPPI, New Delhi. Views expressed are personal.
