NEW DELHI: State-run ONGC is likely to come out with an initial public offering (IPO) for its green energy subsidiary ONGC Green Ltd in the next financial year 2025-26, according to the company’s Director (Exploration), Sushma Rawat.
“That (IPO for ONGC Green) will not take too long but I think some homework needs to be done,” Rawat told FE.
The company has been diversifying into renewable energy including solar, wind, and green hydrogen given the country’s target of achieving net zero by 2070. The company aims to curtail carbon emissions by 1 billion tonnes and simultaneously reduce carbon intensity by 45% by 2030. It had earlier revealed its plans of investing around Rs 1 trillion by the end of 2030 on its multiple green initiatives and is planning to scale up its renewable portfolio to 10 GW.
Moreover, the company is also focusing on downstream integration and expanding its petchem business. “Petchem is the next profitable area for any company with our kind of background and expertise to move into as even if we don’t produce as much, there is always going to be availability of crude worldwide,” Rawat said.
ONGC is also in advanced stages of discussions with various domestic and international leading players in the energy sector for collaboration in renewables, green hydrogen, green ammonia and other derivatives of green hydrogen.
“We are already doing geothermal. Other than that, we have started mapping the sweet spots in geothermal areas. In addition to solar and wind energy, we have also targeted to set up 25 CBG (compressed biogas) plants by FY25 of which 20 have already been set up.
The director said that the company wants to retain its core business in the oil and gas industry as a major explorer while undertaking renewable energy projects through its wholly owned green subsidiary, ONGC Green. The oil major has earlier said that it plans to increase its green energy portfolio by acquiring renewable energy assets.
ONGC Green had recently signed a share purchase agreement with PTC India Ltd for acquisition of 100% equity stake in PTC energy Limited (PEL). PEL has an aggregate operational wind generation capacity of 288.80 MW located in Andhra Pradesh, Madhya Pradesh, and Karnataka.
The company has also formed a joint venture with NTPC Green to carry out various green energy projects including offshore wind, storage, e-mobility, green hydrogen, and its derivatives while keeping an eye for asset acquisition.
The government, lately, has been emphasizing the public sector companies to list their green energy subsidies given the increased interest in the space. Recently, state-run integrated power utility NTPC also listed its green subsidiary NTPC Green.
Source: The Financial Express
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