Oil and Natural Gas Corporation (ONGC) is set to take a significant step in its decarbonisation journey by launching its first full-scale Carbon Capture and Storage (CCS) pilot at the Gandhar oilfield in Gujarat. The initiative will involve storing captured carbon dioxide in depleted onshore wells, marking a milestone in India’s efforts to reduce industrial emissions.
The pilot project will use two abandoned wells to inject around 100 tonnes of CO₂ per day into subsurface hydrocarbon reservoirs. Carbon dioxide will be captured from industrial facilities in the Dahej area as well as ONGC’s Hazira plant, before being transported to Gandhar for underground injection to prevent atmospheric release.
In addition to permanent storage, the project will assess the use of CO₂ for enhanced oil recovery (EOR), transforming a greenhouse gas into a productive input that can improve oilfield performance. ONGC has previously tested CO₂ injection using supplies from Indian Oil Corporation’s Koyali refinery, located about 80 kilometres away.
India is currently the third-largest CO₂ emitter globally, after China and the United States, with annual emissions estimated at 2.6 gigatonnes, according to NITI Aayog. The country has committed to cutting emissions by 50% by 2050 and achieving net-zero by 2070, making technologies such as CCS increasingly critical.
Carbon Capture, Utilisation and Storage (CCUS) is emerging as a key solution for hard-to-abate industrial sectors, where emissions cannot be eliminated through electrification alone. In such industries, fossil fuels are embedded in production processes, making CCUS essential for deep emissions reduction.
ONGC plans to appoint a specialised CCUS consultant to provide technical advisory services, regulatory guidance, feasibility studies, and cost estimates to ensure safe and effective project execution. Officials noted that depleted reservoirs like Gandhar offer ideal geological conditions for long-term CO₂ storage while leveraging existing oil and gas infrastructure.
The pilot is also expected to demonstrate scalability and an integrated approach to decarbonisation, combining emissions reduction with improved oilfield productivity and the potential production of blue hydrogen.
In December 2022, ONGC signed a Memorandum of Understanding with Shell to cooperate on CCUS studies, including CO₂ storage and EOR screening across key Indian basins. Officials indicated that Shell may participate in the pilot at a later stage.
The state-owned energy major has committed $12 billion in investments toward carbon capture and energy transition projects, supporting its goal of achieving net-zero emissions across Scope 1 and Scope 2 operations by 2038.