Oil and Natural Gas Corp (ONGC), India’s largest oil and gas producer, is set to venture further into the renewable energy sector through a strategic partnership with EverEnviro Resource Management Pvt Ltd. The two companies have signed a preliminary agreement to establish an equal joint venture aimed at constructing 10 compressed biogas (CBG) plants, according to a statement released by EverEnviro on Thursday.
This collaborative initiative seeks to leverage a variety of feedstocks, including agricultural waste, agro-industrial waste, energy crops, and municipal solid waste (MSW), to produce biogas. The partnership aims to significantly reduce carbon emissions, mitigating approximately 7.5 lakh tons of CO2 equivalent annually.
“By harnessing diverse feedstocks such as agri waste, agro-industrial waste, energy crops, and municipal solid waste, the partnership aims to mitigate approximately 7.5 lakh tons of CO2 equivalent annually,” EverEnviro’s statement detailed.
While the statement did not specify the financial investments involved in the establishment of the CBG plants, it highlights ONGC’s strategic move towards non-fossil fuel ventures. This shift is part of ONGC’s broader objective to set up solar, wind, and biofuel facilities both independently and through collaborations, as the company positions itself to achieve net zero emissions by 2038.
“ONGC recognizes the urgency of transitioning to clean energy by utilizing agro-industrial waste and municipal solid waste,” commented Satyan Kumar, Executive Director, Chief Corporate Strategy at ONGC. “Our commitment to sustainability is reflected in our strategic investments in renewable energy projects.”
EverEnviro, established in 2019 by Eversource Capital, provides comprehensive waste management solutions. Eversource Capital itself is an equal joint venture between investment manager Everstone Group and Lightsource BP. Currently, EverEnviro is executing more than 20 CBG projects with an investment of about Rs 2,000 crore and has ambitious plans to develop over 100 CBG plants nationwide.
“Our collaboration with ONGC represents a significant milestone in our journey toward advancing renewable energy production in India,” stated Deepak Agarwal, Executive Director of Business Development and Strategy at EverEnviro.
The Indian government has been actively encouraging both state-owned and private entities to invest in the CBG sector, recognizing its potential to reduce reliance on imported natural gas. Presently, India imports nearly half of its gas consumption, underscoring the critical need for domestic alternatives like CBG.
This joint venture between ONGC and EverEnviro aligns with the government’s vision of enhancing energy security and promoting sustainable development. As ONGC expands its renewable energy portfolio, this partnership marks a pivotal step in its evolution from traditional fossil fuels to a diversified energy mix.
The planned CBG plants will not only contribute to environmental sustainability but also bolster local economies by creating job opportunities and supporting the agricultural sector through the utilization of agri-waste.
The initiative underscores a growing trend in the energy sector where traditional energy companies are increasingly investing in renewable projects to meet global sustainability goals. ONGC’s foray into the biogas sector exemplifies this shift, highlighting the importance of innovative solutions in addressing climate change and energy security challenges.
As ONGC and EverEnviro move forward with this ambitious project, they set a benchmark for other companies in the industry, showcasing the potential of public-private partnerships in driving the renewable energy agenda and achieving a greener, more sustainable future for India.
