ONGC Invests Billions in Green Hydrogen for a Sustainable Future

2025-07-01 investment

New Delhi, Tuesday, 1 July 2025.
ONGC plans a $10.2 billion investment to produce two million tonnes of green hydrogen by 2035, marking a major step in sustainability efforts in the energy sector.

Transformative Green Hydrogen Venture

The Oil and Natural Gas Corporation Ltd (ONGC) is taking a bold leap into the future with an ambitious investment of ₹800-850 billion, equating to around $9.6-10.2 billion. This substantial fund will develop a green hydrogen production capacity of two million tonnes by 2035, positioning ONGC as a significant player in India’s green hydrogen sector [3].

Driving Sustainable Energy Transition

This investment is more than just financial—it marks a critical shift towards sustainability and decarbonisation amid pressing climate challenges. With energy use projected to grow at least 25% by 2030, green hydrogen provides a clean alternative to conventional fossil fuels [1]. The plan aligns with India’s greater push to transform into a major global producer and exporter of green hydrogen by the end of the decade [1][6].

Aligning with National Green Goals

Part of a broader national initiative, ONGC’s venture supports the National Green Hydrogen Mission, with government budget allocations for green hydrogen doubling to ₹600 crore in 2025 [1]. This synchronises with India’s commitment to producing five million metric tonnes annually by 2030, signifying ONGC’s role in crucial energy transition strategies [1][5].

Impact on ONGC’s Financials and Operations

Despite a 24.88% year-on-year decrease in investment activities, ONGC allocated a significant portion towards this green initiative [3]. The company sees this as a strategic pivot from its traditional roles as an exploration and production giant in the face of declining crude and natural gas production domestically. It’s a beautiful play of adapting to lower oil prices while ensuring a future-ready company [2][4].

The Road Ahead

By embracing green hydrogen, ONGC is tapping into a renewable resource that can transform energy landscapes. The multi-billion-dollar investment not only shows commitment but integrates ONGC into the wider global trend of energy transition. It’s a clear reminder that even the most oil-focused companies can innovate for the future without losing their edge. The stakes are high, and the impacts could be monumental [3][6].

Bronnen

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