India Oil and Natural Gas Corp. aims to invest 1 trillion rupees ($12.1 billion) by 2030 to try to balance its fossil fuel-heavy energy portfolio with green projects.
The state-controlled driller that produces more than half of the nation’s oil and gas plans to increase its renewable energy portfolio to 10,000 megawatts by 2030 from 189 megawatts at the end of March, Chairman Arun said Kumar Singh during a press conference in Mumbai on Monday. It will also focus on using clean energy to produce ammonia and other technologies that can provide 24-hour generation.
“India will continue to grow in demand for fossil fuels until 2040, but at the same time we need to step up our efforts for green energy,” Singh said. “We have to do this so that the two worlds can coexist.”
ONGC joins Indian Oil Corp. and privately held Reliance Industries as the country’s leading fossil fuel powerhouses that have announced major investments in carbon-free energy. Singh also said the company will try to reduce its direct emissions, but not those from the oil and gas it sells, by 2038. Prime Minister Narendra Modi has set a national goal to become net zero in 2070.
“Because we have cash flow, possibly compared to others it will be easier for us to do,” Singh said. “We can take a slightly riskier stance.”
The company has no plans to stop investing in fossil fuels. Its capital expenditure plan of Rs 301.25 billion for the current fiscal year is almost all devoted to exploration and development of its oil and gas blocks. Its overseas unit, ONGC Videsh Ltd, is considering bidding for blocks in Guyana and is also looking at acquisition opportunities in Africa and Latin America, OVL managing director Rajarshi Gupta said during the same briefing.
