Introduction:
In a significant move to accelerate India’s green energy transition, Bharat Heavy Electricals Ltd (BHEL) and Oil & Natural Gas Corporation Ltd (ONGC) have entered into a strategic partnership, aiming to jointly explore and develop projects within the New and Renewable Energy (NRE) sector. The two state-owned giants signed a Memorandum of Understanding (MoU) on Friday, January 10, 2025, to collaborate on key clean energy technologies, including fuel cells, electrolyzers, and battery energy storage systems.
Collaborative Efforts to Boost Clean Energy Initiatives

The MoU lays the groundwork for a robust partnership focused on advancing India’s renewable energy capabilities, particularly in the field of green hydrogen, a crucial component of India’s National Green Hydrogen Mission.
The partnership will leverage both companies’ existing infrastructure, technological know-how, and resources to push forward solutions that will foster cleaner, more sustainable energy generation.
BHEL, a leader in power equipment manufacturing, and ONGC, a major player in oil and natural gas exploration, will now focus on integrating fuel cell technologies, electrolyzers, and advanced battery storage solutions. These technologies are critical for India’s goal of enhancing energy security, reducing carbon emissions, and meeting ambitious renewable energy targets set for the coming decades.

BHEL and ONGC Join Forces to Accelerate India’s Renewable Energy Future:
Key Goals and Strategic Alignment

The partnership between BHEL and ONGC comes at a time when India is intensifying its efforts to transition to renewable energy and meet its climate commitments under the Paris Agreement. The collaboration is poised to play a key role in scaling up green hydrogen production, a critical enabler of decarbonization, by utilizing electrolyzers and fuel cell technology.
This project aims to significantly contribute to the broader national goal of achieving net-zero emissions by mid-century.
In addition, the use of energy storage solutions such as battery storage systems will address the intermittency challenges posed by renewable energy sources like solar and wind, providing a stable and reliable power supply.

BHEL and ONGC Collaborate to Drive India’s Green Energy Revolution:
Strengthening India’s Energy Landscape

Both BHEL and ONGC are already recognized for their critical roles in the energy sector. BHEL, with its extensive experience in manufacturing power generation equipment, and ONGC, with its vast knowledge of energy infrastructure, are well-positioned to complement each other’s strengths.
This collaboration is expected to pave the way for future growth in India’s renewable energy sector, creating new opportunities for technology development, manufacturing, and project execution.
Financial Performance and Future Prospects
BHEL has recently reported a notable recovery in its financials, posting a standalone net profit of ₹96.67 crore for the Q2 FY25 period (July-September 2024), a significant turnaround from a loss of ₹58.3 crore in the same period last year. Despite the challenges in the past, BHEL is poised for growth, particularly in the renewable energy sector, where it aims to expand its footprint.

Conclusion

The BHEL-ONGC collaboration is a timely and crucial initiative in the pursuit of India’s renewable energy future. With a focus on green hydrogen, fuel cells, electrolyzers, and energy storage, the partnership is well-aligned with the country’s broader sustainability goals and the global push for cleaner energy.
As both companies combine their expertise, this strategic partnership is set to enhance India’s energy landscape and foster innovations that can contribute to a greener, more sustainable world.
FAQ:
1. What is the BHEL-ONGC partnership about?
BHEL (Bharat Heavy Electricals Ltd) and ONGC (Oil & Natural Gas Corporation Ltd) have signed a strategic Memorandum of Understanding (MoU) to collaborate on renewable energy projects. Their partnership will focus on developing and implementing technologies in the areas of fuel cells, electrolyzers, and battery energy storage systems to support India’s clean energy transition, especially through the National Green Hydrogen Mission.
2. What are the key technologies being explored in this partnership?
The BHEL-ONGC partnership will focus on three major technologies:
- Fuel Cells: Used to generate clean electricity by converting chemical energy from fuels, primarily hydrogen, into electricity with water as a byproduct.
- Electrolyzers: Devices that use electricity to split water into hydrogen and oxygen, a key technology for green hydrogen production.
- Battery Energy Storage Systems: These will be used to store renewable energy, helping to address the intermittency issues of renewable energy sources like solar and wind.
3. Why is this partnership important for India?
This collaboration aligns with India’s national renewable energy goals and its commitment to reducing carbon emissions. By focusing on green hydrogen, clean power generation technologies, and energy storage, BHEL and ONGC will contribute to a sustainable energy future, improve energy security, and support the transition to a low-carbon economy.
4. What is the role of green hydrogen in this partnership?
Green hydrogen plays a crucial role in this collaboration as part of India’s National Green Hydrogen Mission. By producing hydrogen through electrolysis using renewable energy, BHEL and ONGC aim to create an eco-friendly and sustainable fuel alternative that can decarbonize industries like steel, chemicals, and heavy transportation, which are traditionally hard to electrify.
5. How will this collaboration help India meet its renewable energy targets?
By investing in advanced technologies like electrolyzers, fuel cells, and battery storage systems, the BHEL-ONGC partnership will help India scale up its production of green hydrogen and enhance the efficiency and storage of renewable energy. This, in turn, will support the country in meeting its renewable energy targets and reducing reliance on fossil fuels.
6. What are the financial implications of this collaboration?
While the exact financial details of the partnership are not disclosed, the collaboration is expected to open up new growth avenues for both BHEL and ONGC, especially in the renewable energy sector. BHEL has already demonstrated a strong financial recovery, reporting a net profit of ₹96.67 crore in Q2 FY25, and this partnership could further boost its growth trajectory.
7. How will BHEL and ONGC benefit from this partnership?
Both companies bring valuable expertise to the table. BHEL, with its extensive experience in power generation equipment manufacturing, and ONGC, with its deep knowledge of energy infrastructure, will combine their strengths to accelerate the development and deployment of clean energy technologies. This partnership will enable them to tap into the growing renewable energy market, driving innovation and contributing to India’s sustainability goals.
8. What is the expected impact of this collaboration on India’s energy landscape?
This partnership is expected to have a significant positive impact on India’s energy landscape. It will help diversify the energy mix by promoting the use of green hydrogen, energy storage, and other sustainable technologies, thereby enhancing energy security, reducing emissions, and creating new opportunities in the renewable energy sector.
9. How will the collaboration contribute to India’s net-zero emission goals?
The focus on green hydrogen, fuel cells, and renewable energy storage solutions will help India decarbonize its industrial and transportation sectors, contributing to the nation’s ambitious goal of achieving net-zero emissions by 2070. These technologies are key to enabling clean, scalable, and sustainable energy solutions for the future.
10. What are the next steps for BHEL and ONGC in this collaboration?
With the MoU signed, the next steps for BHEL and ONGC include identifying and implementing joint projects, developing the necessary technologies, and scaling up operations in the renewable energy sector. The collaboration will likely involve pilot projects, research and development initiatives, and commercialization of clean energy solutions.
11. How does this partnership align with India’s green energy policies?
This collaboration is perfectly in line with India’s renewable energy policies, including the National Green Hydrogen Mission and the overall push to increase the share of clean energy in the national grid. By focusing on innovative technologies such as hydrogen and energy storage, BHEL and ONGC will be playing a key role in supporting India’s transition towards a cleaner, more sustainable energy future.
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