New Delhi: Oil & Natural Gas Corporation’s (ONGC) green subsidiary, ONGC Green Limited (OGL), has signed a Share Purchase Agreement (SPA) for the acquisition of a 100 percent stake in PTC Energy Limited (PEL) on Friday, said ONGC in a regulatory filing. “OGL has signed Share Purchase Agreement on 13.09.2024 with PTC India Limited for acquisition of 100 % equity stake in PTC energy Limited (PEL),” said the oil and gas major. With this acquisition, ONGC Green will also acquire 288.80 MW wind power generation capacity owned by PEL.
PTC energy Limited has an aggregate operational wind generation capacity of 288.80 MW located in Andhra Pradesh (AP), Madhya Pradesh (MP) and Karnataka. It operates 157 Wind Turbine Generators (WTGs) across all its wind farms.
ONGC is targeting to reach Net Zero emissions by 2038 and is therefore, focussing on acquisition of renewable energy assets through its subsidiary OGL. “It is informed that the Company has taken various initiatives in Renewable Energy domain to achieve its Net Zero Target (Scope 1 & 2) by 2038. To consolidate these efforts and accelerate progress, the Company has incorporated a wholly-owned subsidiary, ONGC Green Limited (OGL). OGL is primarily engaged in green energy and gas businesses, viz, renewable energy (solar, wind, hybrid, hydel, tidal and geothermal etc.), biofuels/ bio-gas business, green hydrogen and its derivatives such as green ammonia, green methanol, storage, carbon capture utilisation and storage and LNG business,” the Maharatna PSU told the bourses.
The acquisition comes weeks after ONGC Chairman and Managing Director (CMD) Arun Kumar Singh said that the company is looking to acquire more than 1 GW of renewable energy projects in ‘inorganic way’ during the current financial year. Inorganic growth is a business strategy that involves merging with or acquiring another company to expand operations and grow.
“The aforesaid acquisition is, subject to completion of Condition Precedents and other terms and conditions, as per Share Purchase Agreement executed between the parties and approvals, as may be required under applicable laws,” said ONGC.
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