Oil and Natural Gas Corporation (ONGC), India’s top oil and gas producer, has recently secured the bid to acquire PTC India Ltd’s wind power unit for Rs 925 crore. This move aligns with ONGC’s strategy to expand its renewable energy portfolio alongside its traditional fossil fuel business. ONGC has been actively diversifying its operations over the years, venturing into petrochemicals, power generation, and finding new sources of hydrocarbons.
As part of its renewable energy initiatives, ONGC already operates various wind and solar PV plants with a total capacity of 189 MW. In line with its vision for expansion, the company participated in the bidding process for the acquisition of PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India. The bid, worth Rs 925 crore, has been approved the PTC board and is now subject to the approval of PTC shareholders.
PEL, established in 2008, currently has a renewable energy portfolio of 288.8 MW, comprising wind power projects in Madhya Pradesh, Karnataka, and Andhra Pradesh. The company has long-term agreements with state distribution companies for its entire wind power project portfolio. During the fiscal year 2022-23, PEL recorded a profit of Rs 13.88 crore with a revenue of Rs 296.77 crore.
PTC India, a prominent power trading and financial services provider, stated in a separate filing that the dates for the extraordinary general meeting and the signing of the shareholder’s agreement would be communicated once executed.
ONGC has previously announced its commitment to achieving zero carbon emissions 2038, with an investment of around Rs 2 lakh crore. By 2030, the company aims to set up 10 GW of renewable energy capacity, a green ammonia plant, and offshore wind energy projects, requiring an investment of Rs 1 lakh crore. The remaining investment will focus on achieving Scope 1 and 2 net zero carbon emissions.
While expanding its renewable energy business, ONGC continues its exploration and production activities in the oil and gas sector. Currently, the company has a 189 MW capacity for renewable electricity generation and aims to reach 10 GW 2030. ONGC has also signed a Memorandum of Understanding (MoU) for 5 GW in Rajasthan and is actively seeking similar projects. Additionally, the company plans to establish 25 compressed biogas plants for converting agri-residue into gas, which can be utilized as a fuel for automobiles (CNG) or for electricity and fertilizer production in industries.
ONGC is also exploring opportunities to develop a 1 million tonnes per annum green ammonia plant. The company categorizes emissions into Scope 1 and Scope 2. Scope 1 emissions originate from sources directly owned or controlled the company, while Scope 2 emissions result from the consumption of purchased electricity or energy generated upstream from a company’s operations.
In terms of oil and gas production, ONGC produced 19.584 million tonnes (MT) of oil in 2022-23, with expectations to increase to 20.232 MT in the current fiscal year and 21.265 MT in 2024-25. Natural gas output is projected to rise from 20.636 billion cubic meters (bcm) in 2022-23 to 20.882 bcm in 2023-24, 22.171 bcm in the following year, and 23.708 bcm in 2025-26. ONGC’s endeavors in renewable energy and its continued oil and gas operations highlight the company’s commitment to sustainable and diversified growth.