By Preeti Wadhwa
Several oil and gas companies globally are setting ambitious net-zero targets, fundamentally reshaping investment priorities towards renewables, green hydrogen and energy storage technologies. While hydrocarbons will remain a key part of the energy mix in the near term, traditional energy companies recognise that their long-term success depends on investing in clean technologies. Indian oil and gas majors are also leveraging their established infrastructure and expertise to expand into renewable energy and green fuels while simultaneously decarbonising their fossil fuel operations.
Established in 1956, Oil and Natural Gas Corporation Limited (ONGC), India’s largest upstream oil and gas company, is part of this transition. In FY 2025, crude oil output from ONGC-operated blocks stood at 19.598 million metric tonnes (mmt), while natural gas production reached 19.654 biliion cubic metres (bcm), compared to 19.471 mmt and 19.978 bcm in FY 2024. ONGC Limited accounts for about 15 per cent of India’s total refining capacity and contributes over 70 per cent of the country’s domestic oil and gas production. In a bid to diversify, the PSU has set a net zero emissions target for 2038 and established ONGC Green Limited in 2024 to leverage emerging opportunities in renewables. The subsidiary has already built a 2.5 GW renewable portfolio with plans to scale up to 10 GW by 2030. Beyond renewables, ONGC is exploring opportunities in green hydrogen and biofuels, while also taking steps to electrify operations, cut methane emissions and eliminate routine flaring.
Renewable Watch provides an overview of the clean energy and decarbonisation initiatives taken by ONGC, its recent financial performance, future plans and emission reduction potential…
Clean energy and decarbonisation initiatives
According to the company’s integrated annual report 2024-25, ONGC operated a cumulative installed renewable capacity of 189 MW across its operational areas, comprising 39.96 MW of solar capacity and 153.9 MW of wind capacity. A major shift occurred in 2024, when the company created ONGC Green Limited as a dedicated subsidiary to scale up its clean energy portfolio. The subsidiary quickly transitioned from organic growth to acquisitions, beginning with the purchase of PTC Energy Limited, which added 289 MW of wind power across Madhya Pradesh, Karnataka and Andhra Pradesh. In 2025, its joint venture (JV) with NTPC, ONGC NTPC Green Private Limited, acquired Ayana Renewable Power Private Limited in March 2025. The acquisition brought in a portfolio of 4.1 GW of wind and solar assets, of which 2.05 GW has been added to ONGC’s share. With this, ONGC’s renewable energy portfolio has increased to 2.5 GW.
Parallel to its renewable build-out, ONGC has identified green hydrogen as a key pathway for deep decarbonisation. It has launched pilot projects using renewable power for electrolysis, aimed at testing production, storage and blending with existing gas infrastructure. In December 2024, ONGC partnered with Powergrid to explore opportunities in green hydrogen and clean energy. In January 2025, the PSU signed an MoU with BHEL to explore opportunities across the green hydrogen value chain, including electrolyser manufacturing, hydrogen-fired turbines, storage and fuel cells. In addition, the company is examining the biofuels space. Notably, ONGC has formed an equal JV with EverEnviro Resource Management to develop 10 compressed biogas plants across India. The collaboration aims to reduce around 750,000 tonnes of carbon emissions per year by utilising various feedstocks such as agricultural waste, agro-industrial waste, energy crops and municipal solid waste.
The scale-up of renewable power has led ONGC to focus on storage and integration solutions to ensure round-the-clock supply. In February 2024, the company commissioned a microgrid system at one of its facilities, combining a 750 kWp solar plant with a 1 MWh lithium-ion battery energy storage system. In February 2025, ONGC signed an MoU with Tata Power Renewable Energy to collaborate on battery energy storage systems (BESSs) for grid stability and renewable integration.
A key lever in ONGC’s net zero strategy is carbon capture, utilisation and storage (CCUS). With access to depleted oil and gas fields, the company is well positioned to develop storage reservoirs. Pilot studies are under way to assess geological storage potential and utilisation pathways. The PSU has established a CCUS laboratory at the Keshava Deva Malaviya Institute of Petroleum Exploration in Dehradun.
Alongside CCUS, ONGC is pursuing energy savings, electrification of processes, flaring reduction and methane leak detection systems. In FY25, its energy-saving initiatives helped avoid 0.24 mmtCO2e of emissions.
ONGC also aims to replace diesel vehicles across its operations with electric vehicles (EVs). In FY 2025, the PSU deployed 65 EVs, which now make up 23 per cent of its fleet, along with 193 compressed natural gas vehicles that replaced petrol- and diesel-operated units. With these measures, nearly 90 per cent of ONGC’s total fleet is powered by clean mobility solutions, contributing to its Scope III emission reduction and long-term net zero strategy.
Financial performance
As per the chairman’s speech at the 32nd AGM on August 29, 2025, the company demonstrated strong financial resilience during FY 2025, recording revenue from operations of Rs 1,378.46 billion compared to Rs 1,384.02 billion in the previous year, despite a challenging global environment characterised by volatility in crude oil prices and gas markets. It maintained profitability, with a profit after tax of Rs 356.1 billion in FY 2025, though this was lower than the previous year’s Rs 405.26 billion, primarily due to reduced exploratory write-offs. ONGC continued its focus on shareholder returns, declaring a total dividend payout of Rs 154.11 billion, representing a payout ratio of 43.27 per cent. Meanwhile, in the first quarter of 2025-26, its consolidated net profit rose by 18.2 per cent to Rs 115.54 billion, compared to Rs 97.76 billion in the corresponding quarter of the previous year.
The way forward
ONGC has committed to investing Rs 1 trillion by 2030 and Rs 2 trillion by 2038 in renewable and low-carbon projects. The PSU has set an ambitious target of scaling up its renewable energy portfolio to 10 GW by 2030, aligned with its target of achieving net zero by 2038. Efforts are already under way to build a diversified clean energy portfolio.
The company is prioritising research and development across floating solar, offshore wind, digital monitoring and waste-to-energy solutions. Complementing its domestic initiatives, ONGC Videsh is pursuing international collaborations in upstream oil and gas, liquified natural gas trading and low-carbon technologies. In FY 2025, ONGC Videsh entered the critical minerals space by signing an MoU with the UAE-based International Resources Holding RSC Limited, in partnership with Oil India Limited and Khanij Bidesh India Limited.
By 2038, ONGC plans to scale up green hydrogen production to 0.15 mmt annually, while its biofuel programme is targeting 444 million metric standard cubic metres of compressed biogas and 41.7 kilotonnes of biodiesel. The PSU is also working to eliminate routine flaring by 2030, a move expected to reduce emissions by 1.98 mtCO2e, alongside measures to curb fugitive methane emissions by 0.53 mtCO2e through advanced monitoring and leak detection. Furthermore, the PSU has set a target of deploying 16.6 GWh of BESSs by 2038. In addition, it is accelerating its EV transition by replacing diesel vehicles across operations, which carries an emission reduction potential of 0.66 MTCO2e.
Net, net, it is encouraging to see a legacy fossil fuel PSU such as ONGC stepping up to the challenge of decarbonisation and actively aligning itself with India’s clean energy transition. By setting a net zero target for 2038, creating a dedicated renewables subsidiary, and investing in emerging areas such as green hydrogen, biofuels and carbon capture, ONGC has acknowledged its responsibility in shaping a lower-carbon future.
That said, the PSU can do more. Despite recent acquisitions, its renewable energy footprint remains small, compared to its hydrocarbon-heavy portfolio. Further, initiatives such as CCUS are still at a nascent stage and need to be fast-tracked.
Nonetheless, ONGC’s willingness to embrace the transition is a positive sign. With progress towards its ambitious climate targets, faster execution of initiatives and higher investments, the company can position itself as a leader in India’s net-zero journey.
