NTPC, ONGC announces collaboration forgreen energy

NTPC Green Energy and ONGC Green Energy are forming a Joint Venture Company to fast-track renewable initiatives, underscoring their commitment to sustainable development.

NTPC and ONGC, two Maharatna public sector undertakings (PSUs) of India, announced a landmark collaboration to establish a Joint Venture Company (JVC) through their respective green energy subsidiaries—NTPC Green Energy Ltd. (NGEL) and ONGC Green Energy Ltd. (OGL). This alliance, aimed at accelerating renewable and new energy initiatives, reflects a significant strategic shift for both companies toward sustainable development and green energy adoption. The venture underscores the government’s ambition to transition India’s energy sector towards cleaner alternatives and reduce its carbon footprint in alignment with global climate commitments.

The journey of this joint venture began with the signing of a Joint Venture Agreement on February 7, 2024, during India Energy Week. After securing necessary approvals from the Department of Investment and Public Asset Management (DIPAM) and the NITI Aayog, NGEL has now submitted an application to the Ministry of Corporate Affairs to officially incorporate the 50:50 Joint Venture Company with OGL. 

The new JVC is set to explore and invest in a wide array of renewable energy (RE) and new energy technologies. These include solar power and both onshore and offshore wind energy, marking an ambitious foray into diverse green energy sources. Energy storage, another critical component of the clean energy transition, will also be part of their initiatives, with plans for both pumped storage and battery-based storage systems. The aim is to enhance grid stability and support large-scale renewable energy integration, helping manage energy intermittency and providing reliable power solutions.

One of the unique aspects of the collaboration is its focus on emerging green molecule technologies, such as green hydrogen, green ammonia, and green methanol. These sustainable fuels have the potential to decarbonise hard-to-abate sectors, such as aviation, shipping, and heavy industry. The JVC intends to explore opportunities in the production of Sustainable Aviation Fuel (SAF), which is crucial for reducing emissions in the aviation industry. These technologies not only hold promise for achieving zero-emission targets but also for establishing India as a major hub for green fuel production, capable of serving both domestic and international markets.

Further extending its sustainability goals, the JVC plans to explore opportunities in carbon and green credits, which are mechanisms designed to reduce greenhouse gas emissions. By generating and trading these credits, the JVC will contribute to India’s climate commitments, create value through emissions reduction, and foster a market-driven approach to environmental responsibility.

In addition to pursuing organic growth in renewable energy, the JVC will seek opportunities to acquire existing renewable energy assets, enabling it to quickly expand its portfolio. It will also participate in upcoming offshore wind energy tenders in Tamil Nadu and Gujarat, regions with high potential for wind energy generation. This move aligns with India’s vision to establish offshore wind as a major contributor to the national energy mix.

This strategic partnership between NGEL and OGL highlights a shared commitment to advancing India’s sustainable energy goals, driven by the unique strengths and resources each entity brings to the table. NTPC and ONGC’s expertise in power generation and energy production respectively, paired with their financial and operational capabilities, makes this JVC a formidable player in India’s green energy transition. The collaboration is expected to not only drive innovation but also set a benchmark in environmental stewardship, demonstrating a large-scale industrial shift towards a low-carbon future. This joint venture represents a significant step in India’s journey towards a greener and more sustainable energy landscape, fostering an environment where traditional energy companies are transforming to meet the demands of a sustainable tomorrow.