India’s top state-owned oil explorer, Oil and Natural Gas Corporation (ONGC) has agreed to form a 50:50 joint venture for green energy projects with Greenko, the country’s leading renewable energy company.
As part of an ambitious decarbonization drive, ONGC and its partners will reportedly invest USD 6.2 billion (Rs 50,000 crore) in green energy projects to produce carbon-free hydrogen and green ammonia.
Following the agreement, the JV will establish 5.5-7 gigawatts of solar and wind power projects. The generated electricity will be used to split water in an electrolyzer to produce green hydrogen. It will then be utilized to manufacture green ammonia.
Apparently, the renewable plants, in combination with the pump storage power generation system of Greenko will generate 1.4 GW of endless electricity which will be utilized for producing 0.18 million tons of green hydrogen per year. This hydrogen when mixed with nitrogen will further produce 1 million tons of green ammonia each year. It will then be exported to Europe, Japan, and Korea in the initial years for domestic use as the market develops.
It is also reported that the renewable energy component of the chain will cost approximately USD 5 billion, while the hydrogen and ammonia plant will cost approximately USD 1.2 billion. ONGC expects to begin production in 2026 by setting up the hydrogen and ammonia plants on the west coast near Mangalore, where it also operates an oil refinery.
However, if the land is not available, the project may be relocated to Gujarat.
ONGC, the country’s largest crude oil and natural gas producer, is pursuing carbon-free hydrogen alongside Reliance Industries Ltd and the Adani group. The two private companies have announced multibillion-dollar projects, as part of India’s net-zero goals.
For the unversed, India is also aiming the production of 5 million tons of green hydrogen per year by 2030.