Maharatna, Oil and Natural Gas Corporation Limited (ONGC) signed a Memorandum of Understanding (MoU) on 26 July 2022 to enter into a Joint Venture with one of India’s leading renewable energy companies M/s Greenko ZeroC Private Limited. Inked by ONGC Director (Onshore) Anurag Sharma and Greenko CEO & Managing Director Anil Kumar Chalamalasetty, in the Shastri Bhawan in the presence of the Union Minister of Petroleum and Natural Gas (MoP&NG) & Urban Affairs Hardeep Singh Puri, Petroleum Secretary Pankaj Jain, ONGC CMD Dr Alka Mittal, along with ONGC Director (Finance)-I/c BDJV Pomila Jaspal, other senior officials from MoP&NG. The MoU is in line with National Hydrogen Mission launched by Hon’ble Prime Minister Narendra Modi to make India a Green Hydrogen hub. The MoU envisages ONGC and Greenko to jointly pursue opportunities in Renewables, Green Hydrogen, Green Ammonia and other derivatives of green hydrogen, the MoU is valid for two year.
Minister Puri evinced keen interest in the project, while Secretary Jain was immensely curious about the same.
The ONGC-Greenko MoU signed in the presence of Union Minister of Petroleum and Natural Gas
The MoU is in line with National Hydrogen Mission launched by Hon’ble Prime Minister Narendra Modi
The project will be instrumental in achieving India’s target production of 5 million tonnes of Green Hydrogen by the year 2030, the MoU will emerge as a stepping stone for ONGC to achieve renewable energy targets as per its Energy Strategy 2040. Driven by cost competitiveness, climate change awareness and strong regulatory push, there is a rise of the share of renewables in the energy mix. By moving into renewable space, ONGC aims to meet its objectives such as de-risking of portfolio against long term disruptions and reducing carbon footprint.
This strategic partnership allows both the companies to form a joint venture to setup a 1.3 GW Green Hydrogen plant to produce 1 MMTPA of Green Ammonia. This also makes way for them to jointly develop around 6-7 GW of Solar and Wind capacity. This will be done by utilizing Greenko’s pumped hydro storage platform and Energy Storage Cloud to supply Round-The-Clock RE (RE RTC) power to the electrolyzes plant to produce green Hydrogen-based Ammonia. The first production is expected around the year 2026. The project will envisages investment of around USD 6 Billion over 3-4 years.
With a net worth of USD 30 Billion, ONGC is India’s largest crude oil and natural gas company. Its strategic partnership with India’s leading energy transition company, the Greenko Group, would leverage Greenko’s exclusive partnership with John Cockerill, world’s largest alkaline electrolyzer manufacturer. Set to be one of the largest RE projects in the world, this pioneering endeavor will require about 6-7 GW of Solar and Wind RE Power coupled with Greenko’s path-breaking Pumped-Hydro Energy Storage platform to generate 1.4 GW of Round-the-Clock RE Power (RE RTC).
The Union Minister and senior officials of MoP&NG and ONGC deliberating on the ONGC-Greenko MoU
Jointly owned and funded by ONGC and Greenko, the project will combine both their strengths to collaborate in all aspects of product design and market development. The Green Ammonia produced from the project is intended to be sold at international markets where there is high demand for alternative molecules derived from green energy as the source. While aiding in India’s Green Hydrogen Mission, the project will cater to the country’s urgent need for providing indigenous green energy solutions and contribute toward the country’s deep decarbonization efforts.
The MoU being exchanged between ONGC Director (Onshore) Anurag Sharma and Greenko CEO & MD Anil Kumar Chalamalasetty, in the presence of Minister Puri, Secretary Jain and ONGC CMD Dr Alka Mittal
As India’s leading Energy Transition Company, Greenko Group has an installed capacity of 7.3 GW across solar, wind and hydro assets spread over more than hundred projects across 15 states. Greenko delivers more than 20 billion units of renewable energy annually.
ED-Chief BD&JV Debdulal Adhikari and his team along with ED-Chief Marketing Sanjay Kumar, CGM (Marketing) Pankaj Manchanda and CM (Marketing) Anu Abraham are working tirelessly to take up this new hydrogen business initiative under the leadership of Director (Onshore) Anurag Sharma and Director (Finance)-I/c BDJV. The project is expected to be finalized soon to produce the lowest-cost Green Ammonia and green molecules to catalyze India’s and the world’s decarbonization efforts.
ONGC and Greenko team with Joint Secretary, MoPNG
ED Chief Marketing Sanjay Kumar, who took the major role in this hydrogen initiatives said that it is an important strategic milestone of ONGC to enter into renewable energy business through a large project. Green Hydrogen is expected to play a key role as an energy carrier in future energy systems of the world. Green hydrogen, produced with renewable electricity (solar and/ or wind), is projected to grow rapidly in the coming years as fossil-fuel supplies become undesirable due to environmental concerns. Further, green Hydrogen-based Ammonia will play a key role to transport the green energy around the globe in an economical and safe way and is likely to become a potential principal chemical energy carrier.