The India Oil and Gas market size is anticipated to reach 51.67 billion cubic meter by 2030, at a CAGR of 5.2 per cent until 2030. Oil and gas companies have been one of the largest contributors of carbon emissions & environmental degradation. However, faced with surging regulatory pressures, investor demands, and public scrutiny, most of these organizations are moving towards renewable energy sources. This transition isn't only essential for global sustainability but acts as one of the strategic shift for ensuring long-term profitability in a rapidly changing energy market. In this article let us look at how Oil & Gas Companies are Transitioning to Renewable Energy Sources.
“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,” stated Arun Kumar Singh, Chairman, ONGC.
Many oil and gas companies are investing heavily in renewable energy sources which include solar, wind as well as hydropower. These investments not only help in reducing carbon footprint however diversify their energy portfolio. Companies recognize that a shift away from fossil fuels needs large-scale investments in clean energy projects. Solar as well as wind power specifically have become attractive options owing to reducing costs as well as technological advancements which have enhanced efficiency.
“With emissions-related trade regulations like CBAM expected to take effect soon, understanding the potential for near-term emission reductions is crucial for Indian heavy industries. Renewables-based electrification also offers multiple co-benefits to India’s wider energy ecosystem. It can open up multi-million-dollar private investment opportunities, stimulate India’s clean energy manufacturing sector and propel India towards becoming a global leader in clean energy,” says Aditya Lolla, Asia Programme Director, Ember.
For instance, TotalEnergies committed billions to solar and wind projects, aiming for net-zero emissions by 2050. The organization has expanded its offshore wind farms in the UK and invested heavily in solar power initiatives in the Middle East. These projects help in ensuring a steady transition from fossil fuels to renewable energy, securing long term profitability while also meeting global energy demands sustainably.
“India is a fast-growing country, which is also increasing the use of fossil fuels. Since the country is significantly dependent on imports for its energy needs, there is a very strong business sense for harnessing the power of green hydrogen,” shares Amit Bansal, CEO of Hygenco Green Energies.
Explaining why India needs green hydrogen, he says, “Some of the major factors why we feel India needs green hydrogen include, energy independence, achieving the country’s net zero targets, and creating huge job opportunities. It is also expected to save our forex. The precious foreign exchange saved by reducing fossil fuel imports can be harnessed for social use such as health and education. Further, the country can even target to become a net exporter of ammonia and its derivatives from being a large importer of fossil fuels,” he adds.
Hydrogen and biofuels present promising options in contrast to customary petroleum fuels, especially for industrial applications and heavy transportation sectors. Companies are creating green hydrogen utilizing renewable energy sources, decreasing carbon emissions significantly. Hydrogen fuel can be utilized in fuel cells for generating electricity or as a direct substitute for fossil fuels in numerous sectors.
For instance, Shell plans to invest $10-$15 billion across 2023-2025 to support the development of low-carbon energy solutions including e-mobility, low-carbon fuels, renewable power generation, hydrogen, and carbon capture and storage. In total, Shell invested $5.6 billion in low-carbon solutions in 2023, which was 23% of its capital spending.
Jolt includes supplanting petroleum product subordinate activities with power controlled other options, decreasing discharges in oil and gas tasks. Organizations are progressing to electric-controlled penetrating gear, refining processes, and other functional regions to limit dependence on petroleum derivatives. This shift is especially pertinent in seaward boring and refining, where charge can altogether cut emanations.
The success of industrial electrification and decarbonisation heavily depends on the commercialisation of hydrogen production. In 2023, the Indian government launched the Green hydrogen Mission, aiming to produce 5 million tonnes of green hydrogen powered by 125 GW of renewable energy by 2030. By 2024, the first trance of subsidies for electrolyser manufacturing and green hydrogen production was completed, attracting significant interest from both public and private corporations.
Simultaneously, carbon catch, usage, and capacity (CCUS) advancements are becoming basic in decreasing outflows from continuous non-renewable energy source tasks. CCUS permits organizations to catch CO2 discharges at the source and either store them underground or reuse them for modern applications. For instance, ExxonMobil has put resources into CCUS projects around the world, catching huge number of metric lots of CO2 yearly. The organization is additionally effectively associated with direct air catch research, which intends to eliminate CO2 from the air, further relieving the natural effect of petroleum derivative use.
“There is still much more that needs to be done, especially in emerging areas like industrial decarbonization, hydrogen and carbon capture, in order to reach global net-zero goals. True partnership between the private and public sectors is the only solution to unlock the potential of these technologies,” says Albert Cheung, Deputy CEO of BNEF.
Oil and gas organizations are at urgent crossroads ever. Those that proactively embrace renewables won't just add to a more practical future yet additionally position themselves as pioneers in the new energy economy. Through essential speculations, mechanical headways, and organizations, these organizations are slowly progressing from petroleum products to environmentally friendly power, guaranteeing both ecological and financial maintainability.
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