ONGC and NTPC Team Up for Global Green Energy Push

Two of India’s energy giants, ONGC and NTPC, are joining forces to tap into renewable energy opportunities, both within India and internationally. Their green energy subsidiaries have partnered to explore fresh projects and evaluate acquisitions, creating a joint venture called ONGC NTPC Green. This announcement came on November 18.

NTPC confirmed that the Power Ministry gave the green light to this joint venture back in August, and now the partnership has officially been set up.

The timing couldn’t be more strategic, as NTPC Green’s IPO (initial public offering) is just around the corner, launching on November 19. The partnership’s game plan is to develop renewable energy projects worldwide, focus on acquiring assets, and seal power sales through options like TBCB (Tariff-Based Competitive Bidding) tenders. They’re also diving into innovative areas like energy storage, electric mobility, and ESG (Environmental, Social, and Governance) projects.

NTPC Green Energy, NTPC’s renewable energy-focused subsidiary, is gearing up for a massive ₹10,000 crore IPO on November 19. As part of the new JV, there are plans to explore offshore wind energy projects in India—a bold move toward greener horizons.

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The scope of the joint venture isn’t just limited to greenfield projects. They’re also eyeing domestic and international renewable energy assets and opportunities tied to carbon and green credits.

A recent Reuters report highlighted the growing ambitions of this partnership. The ONGC-NTPC duo emerged as top bidders for Ayana Renewable Power, offering approximately $650 million. This bid reflects their strong commitment to renewable energy. Notably, the two companies inked their joint venture agreement earlier this year, in February 2024, to establish an equal partnership.

ONGC NTPC Green (ONGPL) was officially established on November 18, 2024, as a 50:50 joint venture between NTPC Green Energy Limited (NGEL), a fully-owned subsidiary of NTPC, and ONGC Green Energy Limited (OGL), wholly owned by the Oil and Natural Gas Corporation (ONGC).

According to NTPC's regulatory filing, ONGPL's primary focus will be on developing and operating renewable energy (RE) projects and assets through both Greenfield initiatives and acquisitions. Additionally, ONGPL will explore the feasibility of offshore wind energy projects alongside other related ventures.

The fluctuation in NTPC's share price corresponds with the company's strategic growth initiatives, particularly as its renewable energy subsidiary, NTPC Green Energy, begins its initial public offering (IPO) today. Through this IPO, NTPC Green Energy aims to raise ₹3,000 crore by issuing 925,925,926 fresh shares.

As India’s largest power utility, NTPC boasts an installed capacity of 72,254 MW (including joint ventures). Recognized as a Maharatna company, NTPC has set an ambitious target of achieving 130 GW capacity by 2032. The company focuses on the generation and bulk sale of power and has outlined a comprehensive technology roadmap to integrate high-efficiency equipment, such as supercritical and ultra-supercritical machines, in its upcoming plants.

ONGC Reports Strong Financial Performance

Meanwhile, ONGC is riding high on a financial upswing. The company reported a 17% boost in consolidated net profit for the quarter ending September 30, 2024, totaling ₹11,984 crore. For context, the standalone net profit for the same period last year was ₹10,238 crore.

On top of that, ONGC announced a first interim dividend of ₹6 per share, representing 120% for FY 2024-25. November 20, 2024, has been set as the record date to determine which shareholders are eligible for this payout.

New Oil Wells Boost Production

In other news, ONGC is ramping up oil production in its deepwater operations. Three oil wells in the KG-DWN-98/2 block’s A-field went online on October 30, 2024, bringing daily oil production to around 25,000 barrels from eight wells in Cluster-II. ONGC plans to activate the remaining five wells soon, further increasing output.