Oil and Natural Gas Corporation (ONGC) has secured a bid to acquire PTC India Ltd’s wind power unit for Rs 925 crore as part of its strategy to expand its renewable energy portfolio. The state-owned company aims to balance its traditional fossil fuel business by diversifying into the petrochemicals, power, and renewable energy sectors.
ONGC, India’s leading oil and gas producer, stated in a stock exchange filing that it has already taken several steps towards renewable energy power generation. It currently operates solar PV and wind plants with a combined capacity of 189 megawatts (MW) across different locations.
The company participated in the bidding process to acquire a 100% equity stake in PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited. ONGC’s bid was approved by the PTC board, subject to the shareholders’ approval. PEL holds a renewable energy portfolio of 288.8 MW, consisting of wind power projects in Madhya Pradesh, Karnataka, and Andhra Pradesh. It has also entered into long-term agreements with state distribution companies for its entire wind power project portfolio.
During the fiscal year 2022-2023, PEL reported a profit of Rs 13.88 crore on a revenue of Rs 296.77 crore. PTC India, a prominent power trading and financial services solutions provider, announced that the dates for the extraordinary general meeting and the signing of the shareholder’s agreement will be communicated once they are executed.
ONGC has committed to investing around Rs 2 lakh crore to achieve zero carbon emissions by 2038. By 2030, the company plans to set up 10 gigawatts of renewable energy capacity, a green ammonia plant, and offshore wind energy projects with an investment of Rs 1 lakh crore. The remaining investment will be directed towards achieving net zero carbon emissions under Scope 1 and 2.
Meanwhile, ONGC continues to focus on its core business of oil and gas exploration and production. The company currently has a capacity of 189 MW to generate electricity from renewable sources and aims to reach 10 GW by 2030. It has already signed a memorandum of understanding for 5 GW in Rajasthan and is actively seeking similar-sized projects. Additionally, ONGC plans to establish 25 compressed biogas plants utilizing agricultural residue to generate gas for automobile use and industrial electricity and fertilizer production. The company is also exploring opportunities to set up a 1 million tonnes per annum green ammonia plant.
Scope 1 emissions refer to emissions directly emitted by a company, while Scope 2 emissions are attributed to the consumption of purchased electricity, steam, or other energy sources. In terms of oil and gas production, ONGC expects its output to increase from 19.584 million tonnes in 2022-2023 to 20.232 million tonnes in the current fiscal year and further to 21.265 million tonnes in 2024-2025. Natural gas production is projected to rise from 20.636 billion cubic metres in 2022-2023 to 20.882 billion cubic metres in 2023-2024, 22.171 billion cubic metres in the following year, and 23.708 billion cubic metres in 2025-2026.
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