ONGC will set up a new unit to house its gas business and clean energy projects such as green hydrogen, towards its plan to foray into new areas. The Ministry of Petroleum and Natural Gas (MoPNG) has approved the formation of a subsidiary company of the firm for green energy and gas business.

The wholly-owned subsidiary company will be for value-chains of energy business comprising green hydrogen, hydrogen blending, renewable energy solar, wind and hybrid as well as biofuels, biogas business and LNG. The proposed name of the company is 'ONGC Green' which is subject to the approval of the Ministry of Corporate Affairs, Government of India (GoI).

The company's Board has also accorded its in-principle approval for the formation of a joint venture company (JVC) with NTPC Green Energy, and the JVC will be engaged in the area of offshore wind energy and other renewable energy.

The gas producer plans to spend Rs one lakh crore on installing 10 GW of RE capacity, and setting up two million tonne of green ammonia annual production capacity by 2035, as part of its decarbonisation strategy.

India committed to a five-part 'Panchamrit' pledge at COP26 held in 2021, which included reaching 500 GW of non-fossil electricity capacity, and reducing emissions by one billion tonne by 2030.