Indian Government-backed Oil and Natural Gas Corporation (ONGC) has committed to spending Rs2trn ($24.16bn) to achieve net-zero emissions goals by 2038, reported PTI via the Economic Times.

In a press briefing at the company’s annual general meeting, ONGC chairman Arun Kumar Singh said that by 2030, the energy company will invest Rs1trn in offshore wind energy, green ammonia plants and ten gigawatts of renewable energy capacity.

The remaining funds will be allocated to scope 1 and 2 net-zero carbon emissions targets by 2038.

ONGC will invest in green initiatives while continuing to explore and produce more oil and gas.

“It is not an ‘or’ strategy. It is an ‘and’ story. ONGC will continue to invest in oil and gas exploration and production and also in energy transition projects,” Singh said, adding that “ONGC has enough heft, financial muscle to do both.”

ONGC stated that it has outlined a “road map to significantly expand its low-carbon energy portfolio.”

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In the last five years, scope 1 and 2 emissions have been reduced by 17%, and in financial year 2023, ONGC cut its emissions by 2.66%.

“ONGC plans to significantly increase its spending on green initiatives to reduce its carbon footprint as a broader effort to achieve net-zero for scope 1 and scope 2 emissions by 2038,” Singh added.

The company is in advanced talks with energy industry players for a range of low-carbon energy projects such as renewable energy, green hydrogen, green ammonia, and other derivatives of green hydrogen.

It is also building two greenfield oil-to-chemical plants.

Singh, however, stated that the cornerstone of the company’s energy business will continue to be oil and gas exploration and production.

The major areas of focus still include deepwater field operations, sustained production from current assets, and extensive exploration in both known basins and frontier plays, he added.