ONGC, NTPC form joint venture to advance renewable, new energy interests

JVC will contribute significantly to India's renewable energy landscape, drive innovation and foster environmental stewardship

Leading public sector undertakings (PSUs) NTPC Limited and Oil and Natural Gas Corporation (ONGC) on Monday announced the formation of a 50:50 joint venture company (JVC) to further promote their interests in the renewable and new energy arena.

 

The JVC between the country’s largest power generating company and largest oil and gas producer has been formed through their green energy subsidiaries – NTPC Green Energy Ltd (NGEL) and ONGC Green Energy Ltd.

 

The new company will venture into various renewable energy and new energy opportunities including solar and wind energy, both onshore and offshore, and green molecules such as green hydrogen, green ammonia, sustainable aviation fuel (SAF), and green methanol.

 

It will also focus on new and emerging technologies in the field such as energy storage including both pump and battery storage, e-mobility, carbon credits and green credits.

 

"The strategic partnership between NGEL and OGL signifies a concerted effort towards advancing sustainable energy initiatives, aligning closely with the nation's ambitious goals for a greener future,” the companies said in a joint statement.

 

“Considering their domain expertise and resources, both entities are poised to contribute significantly to India's renewable energy landscape, driving innovation and fostering environmental stewardship," they said.

 

The JVC will also seek opportunities to acquire renewable energy assets and consider participation in upcoming offshore wind tenders in Tamil Nadu and Gujarat, it added.

 

While both sides had signed the joint venture agreement in February, NGEL had received statutory approvals from the Department of Investment and Public Asset Management and NITI Aayog. NGEL has submitted an application to the Ministry of Corporate Affairs for the incorporation of a 50:50 JVC with OGL.

 

In September, NTPC Limited filed the paperwork for an initial public offering for NGEL. The company plans to raise close to Rs 10,000 crore through the public issue.

 

OGL was incorporated in February 2024, with an authorised capital of Rs 100 crore and subscribed and paid up capital of Rs 1 crore. ONGC aims to acquire more than 1 Gw of renewable energy projects as it aims to enter the clean energy services market.