NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements of IOCL refineries.

The signing of the joint venture agreement between NTPC Limited and IOCL is expected to facilitate the two companies in achieving the Clean Energy Targets set by the Government of India in their respective core businesses, an official statement said.

By collaborating in the development of renewable energy projects, it is expected that both companies can contribute towards the country’s transition to a cleaner and more sustainable energy future.

NGEL has set an ambitious goal of developing a renewable energy portfolio of 60 GW within the next ten years.

This target reflects the company’s commitment to expand its green energy business and aggressively pursue renewable energy projects.

Earlier in July 2022, Indian Oil Corporation (IOC) and NTPC signed similar agreement to form a joint venture (JV) company to meet the power requirements of upcoming projects of Indian Oil refineries with renewable power.

In 2020, both NTPC and Indian Oil signed a memorandum of understanding with South Delhi Municipal Corporation to develop a demonstration waste-to-energy project at the Okhla landfill site in Delhi. About 17,500 tonnes of refuse-derived fuel will be processed using gasification technology. The gas generation will help import petroleum products and save on precious foreign exchange.

Indian Oil and NTPC have also invited bids to set up green hydrogen generation facilities and fuel stations across the country.

During the signing ceremony, Kausik Basu, ED (M&I), IOCL, and V.V. Sivakumar, GM, NGEL, signed the joint venture agreement. The event was attended by Gurdeep Singh, CMD, NTPC Limited, and Shrikant Madhav Vaidya, Chairman, IOCL.

IndianOil currently has a renewable portfolio of 239 MW currently, which the company is expanding through new wind, solar, hydel, and pumped hydro projects.

Recently, the company said it would consolidate its current green assets under one umbrella to bolster the expansion across all verticals, including biofuels, renewables, green hydrogen, carbon offsets, and carbon capture, utilization, and storage.

Following this, the IOC board approved the formation of a wholly owned subsidiary, subject to the approval of NITI Aayog and the finance ministry.

The subsidiary would help the company expand its operations into low-carbon, new, clean, and green energy businesses.