By Preeti Wadhwa
A number of oil and gasoline firms globally are setting bold net-zero targets, basically reshaping investment priorities in direction of renewables, inexperienced hydrogen and power storage applied sciences. Whereas hydrocarbons will stay a key a part of the power combine within the close to time period, conventional power firms recognise that their long-term success is determined by investing in clear applied sciences. Indian oil and gasoline majors are additionally leveraging their established infrastructure and experience to develop into renewable power and inexperienced fuels whereas concurrently decarbonising their fossil gasoline operations.
Established in 1956, Oil and Pure Fuel Company Restricted (ONGC), India’s largest upstream oil and gasoline firm, is a part of this transition. In FY 2025, crude oil output from ONGC-operated blocks stood at 19.598 million metric tonnes (mmt), whereas pure gasoline manufacturing reached 19.654 biliion cubic metres (bcm), in comparison with 19.471 mmt and 19.978 bcm in FY 2024. ONGC Restricted accounts for about 15 per cent of India’s whole refining capability and contributes over 70 per cent of the nation’s home oil and gasoline manufacturing. In a bid to diversify, the PSU has set a web zero emissions goal for 2038 and established ONGC Inexperienced Restricted in 2024 to leverage rising alternatives in renewables. The subsidiary has already constructed a 2.5 GW renewable portfolio with plans to scale as much as 10 GW by 2030. Past renewables, ONGC is exploring alternatives in inexperienced hydrogen and biofuels, whereas additionally taking steps to impress operations, reduce methane emissions and get rid of routine flaring.
Renewable Watch gives an summary of the clear power and decarbonisation initiatives taken by ONGC, its latest monetary efficiency, future plans and emission discount potential…
Clear power and decarbonisation initiatives
In keeping with the corporate’s built-in annual report 2024-25, ONGC operated a cumulative put in renewable capability of 189 MW throughout its operational areas, comprising 39.96 MW of photo voltaic capability and 153.9 MW of wind capability. A serious shift occurred in 2024, when the corporate created ONGC Inexperienced Restricted as a devoted subsidiary to scale up its clear power portfolio. The subsidiary rapidly transitioned from natural progress to acquisitions, starting with the acquisition of PTC Energy Restricted, which added 289 MW of wind energy throughout Madhya Pradesh, Karnataka and Andhra Pradesh. In 2025, its three way partnership (JV) with NTPC, ONGC NTPC Inexperienced Non-public Restricted, acquired Ayana Renewable Energy Non-public Restricted in March 2025. The acquisition introduced in a portfolio of 4.1 GW of wind and photo voltaic property, of which 2.05 GW has been added to ONGC’s share. With this, ONGC’s renewable power portfolio has elevated to 2.5 GW.
Parallel to its renewable build-out, ONGC has recognized inexperienced hydrogen as a key pathway for deep decarbonisation. It has launched pilot tasks utilizing renewable energy for electrolysis, geared toward testing manufacturing, storage and mixing with current gasoline infrastructure. In December 2024, ONGC partnered with Powergrid to discover alternatives in inexperienced hydrogen and clear power. In January 2025, the PSU signed an MoU with BHEL to discover alternatives throughout the inexperienced hydrogen worth chain, together with electrolyser manufacturing, hydrogen-fired generators, storage and gasoline cells. As well as, the corporate is analyzing the biofuels area. Notably, ONGC has shaped an equal JV with EverEnviro Useful resource Administration to develop 10 compressed biogas vegetation throughout India. The collaboration goals to scale back round 750,000 tonnes of carbon emissions per yr by utilising varied feedstocks resembling agricultural waste, agro-industrial waste, power crops and municipal stable waste.
The size-up of renewable energy has led ONGC to concentrate on storage and integration options to make sure round the clock provide. In February 2024, the corporate commissioned a microgrid system at one among its services, combining a 750 kWp photo voltaic plant with a 1 MWh lithium-ion battery power storage system. In February 2025, ONGC signed an MoU with Tata Energy Renewable Vitality to collaborate on battery power storage programs (BESSs) for grid stability and renewable integration.
A key lever in ONGC’s web zero technique is carbon seize, utilisation and storage (CCUS). With entry to depleted oil and gasoline fields, the corporate is effectively positioned to develop storage reservoirs. Pilot research are underneath solution to assess geological storage potential and utilisation pathways. The PSU has established a CCUS laboratory on the Keshava Deva Malaviya Institute of Petroleum Exploration in Dehradun.
Alongside CCUS, ONGC is pursuing power financial savings, electrification of processes, flaring discount and methane leak detection programs. In FY25, its energy-saving initiatives helped keep away from 0.24 mmtCO2e of emissions.
ONGC additionally goals to exchange diesel automobiles throughout its operations with electrical automobiles (EVs). In FY 2025, the PSU deployed 65 EVs, which now make up 23 per cent of its fleet, together with 193 compressed pure gasoline automobiles that changed petrol- and diesel-operated items. With these measures, almost 90 per cent of ONGC’s whole fleet is powered by clear mobility options, contributing to its Scope III emission discount and long-term web zero technique.
Monetary efficiency
As per the chairman’s speech on the thirty second AGM on August 29, 2025, the corporate demonstrated sturdy monetary resilience throughout FY 2025, recording income from operations of Rs 1,378.46 billion in comparison with Rs 1,384.02 billion within the earlier yr, regardless of a difficult international atmosphere characterised by volatility in crude oil costs and gasoline markets. It maintained profitability, with a revenue after tax of Rs 356.1 billion in FY 2025, although this was decrease than the earlier yr’s Rs 405.26 billion, primarily as a result of diminished exploratory write-offs. ONGC continued its concentrate on shareholder returns, declaring a complete dividend payout of Rs 154.11 billion, representing a payout ratio of 43.27 per cent. In the meantime, within the first quarter of 2025-26, its consolidated web revenue rose by 18.2 per cent to Rs 115.54 billion, in comparison with Rs 97.76 billion within the corresponding quarter of the earlier yr.
The best way ahead
ONGC has dedicated to investing Rs 1 trillion by 2030 and Rs 2 trillion by 2038 in renewable and low-carbon tasks. The PSU has set an bold goal of scaling up its renewable power portfolio to 10 GW by 2030, aligned with its goal of attaining web zero by 2038. Efforts are already underneath solution to construct a diversified clear power portfolio.
The corporate is prioritising analysis and growth throughout floating photo voltaic, offshore wind, digital monitoring and waste-to-power options. Complementing its home initiatives, ONGC Videsh is pursuing worldwide collaborations in upstream oil and gasoline, liquified pure gasoline buying and selling and low-carbon applied sciences. In FY 2025, ONGC Videsh entered the important minerals area by signing an MoU with the UAE-based Worldwide Sources Holding RSC Restricted, in partnership with Oil India Restricted and Khanij Bidesh India Restricted.
By 2038, ONGC plans to scale up inexperienced hydrogen manufacturing to 0.15 mmt yearly, whereas its biofuel programme is concentrating on 444 million metric normal cubic metres of compressed biogas and 41.7 kilotonnes of biodiesel. The PSU can be working to get rid of routine flaring by 2030, a transfer anticipated to scale back emissions by 1.98 mtCO2e, alongside measures to curb fugitive methane emissions by 0.53 mtCO2e via superior monitoring and leak detection. Moreover, the PSU has set a goal of deploying 16.6 GWh of BESSs by 2038. As well as, it’s accelerating its EV transition by changing diesel automobiles throughout operations, which carries an emission discount potential of 0.66 MTCO2e.
Web, web, it’s encouraging to see a legacy fossil gasoline PSU resembling ONGC stepping as much as the problem of decarbonisation and actively aligning itself with India’s clear power transition. By setting a web zero goal for 2038, making a devoted renewables subsidiary, and investing in rising areas resembling inexperienced hydrogen, biofuels and carbon seize, ONGC has acknowledged its duty in shaping a lower-carbon future.
That mentioned, the PSU can do extra. Regardless of latest acquisitions, its renewable power footprint stays small, in comparison with its hydrocarbon-heavy portfolio. Additional, initiatives resembling CCUS are nonetheless at a nascent stage and have to be fast-tracked.
Nonetheless, ONGC’s willingness to embrace the transition is a constructive signal. With progress in direction of its bold local weather targets, sooner execution of initiatives and better investments, the corporate can place itself as a frontrunner in India’s net-zero journey.
