New Delhi: Oil and Natural Gas Corporation (ONGC) has successfully secured the acquisition of PTC India Ltd’s wind power unit for Rs 925 crore, as part of its ongoing efforts to expand its renewable energy portfolio alongside its conventional fossil fuel operations.
ONGC revealed in a stock exchange filing that it has diversified over the years into petrochemicals and power in addition to its core hydrocarbon exploration business. The company is actively involved in renewable energy generation and already possesses a 189-megawatt (MW) capacity from wind and solar PV installations located in various regions.
“With a vision to expand its business in renewable energy, the company had participated in the bidding process for acquisition of 100 percent equity stake of PTC Energy Limited (PEL), a wholly-owned subsidiary of PTC India Limited (PTC),” the filing said.
It also added that the PTC board approved ONGC’s offer to acquire a 100 percent equity stake in PEL at an equity value of Rs 925 crore, pending approval by PTC shareholders.
PEL, established on August 1, 2008, boasts a renewable energy portfolio of 288.8 MW, comprising 50 MW wind power projects in Madhya Pradesh, 50 MW wind power projects in Karnataka, and 188.8 MW wind power projects in Andhra Pradesh. The company has entered into long-term agreements with state distribution companies for its entire 288.8 MW wind power project portfolio.
During the 2022-23 fiscal year (April 2022 to March 2023), PEL reported a profit of Rs 13.88 crore with a revenue of Rs 296.77 crore.
In a separate filing, PTC India, a power trading and financial services provider, stated that the date for an extraordinary general meeting and the signing of the shareholder’s agreement will be communicated upon execution.
ONGC previously announced a significant investment of approximately Rs 2 lakh crore to achieve zero carbon emissions by 2038. The company plans to invest Rs 1 lakh crore by 2030 to establish 10 gigawatts of renewable energy capacity, a green ammonia plant, and offshore wind energy projects. The remaining investments will be directed toward achieving Scope 1 and 2 net-zero carbon emissions.
While pursuing its renewable energy goals, ONGC continues its oil and gas exploration and production activities. Currently, the company has a 189 MW capacity for electricity generation from renewable sources and aims to reach 10 GW by 2030. ONGC has already signed a memorandum of understanding (MoU) for 5 GW in Rajasthan and is actively seeking projects of a similar scale. Additionally, the company intends to establish 25 compressed biogas plants for converting agricultural residue into gas for use in automobiles (CNG) or for electricity and fertiliser production.
ONGC is also exploring opportunities to set up a green ammonia plant with an annual capacity of 1 million tonnes.
Scope 1 emissions pertain to direct emissions from sources owned or controlled by a company, while Scope 2 emissions are associated with the consumption of purchased electricity, steam, or other energy sources generated upstream from a company’s operations.
In terms of its oil and gas production, ONGC extracted 19.584 million tonnes (MT) of oil in 2022-23, with expectations of increasing to 20.232 MT in the current fiscal year (April 2023 to March 2024) and further to 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 the following year, and 23.708 bcm in 2025-26.
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