Reykjavik/New Delhi – India’s state-run oil giants, ONGC and Oil India Limited, are taking centre stage in a landmark clean energy collaboration with Iceland. The strategic partnership, forged during a high-level meeting between Union Minister Hardeep Singh Puri and Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir in Reykjavik, aims to unlock India’s vast geothermal potential.
ONGC and Oil India Driving Geothermal Development
Minister Puri confirmed that ONGC and Oil India are already advancing geothermal exploration in Puga Valley (Ladakh), Uttarakhand, and Himachal Pradesh. These regions are among the 350 sites across India identified as having over 10 GW of geothermal potential.
Both PSUs are actively executing geothermal pilot projects. ONGC, which earlier signed an MoU with Iceland GeoSurvey (ÍSOR), is conducting deep drilling studies in the Puga Valley. Oil India is also progressing with feasibility work in Himalayan geothermal zones.
Their initiatives are crucial in positioning India at the forefront of clean base-load energy, especially in high-altitude terrains where conventional energy access is limited.
Iceland to Offer Technical Know-How and Training
Recognizing Iceland as a global leader in geothermal technology, Minister Puri welcomed the Nordic nation’s offer of technical training and expertise to bolster India’s geothermal drive. Iceland will support ONGC and Oil India with skill-building, site studies, and technology transfer.
The cooperation will strengthen India’s geothermal roadmap and support its ambitious climate and energy transition goals.
POL Exports and EFTA Pact Open New Frontiers
Beyond geothermal, Minister Puri also highlighted India’s new export channel to Iceland for Petroleum, Oil and Lubricants (POL). The development follows the India-EFTA Trade & Economic Partnership Agreement, signed in March 2024, which catalyzed bilateral trade in energy.
The discussions in Reykjavik also reaffirmed mutual interest in expanding energy and climate partnerships, with geothermal energy at the heart of the new chapter.
About ONGC
Oil & Natural Gas Corporation Limited (ONGC) is India’s largest crude oil and natural gas company, operating under the Ministry of Petroleum and Natural Gas. It holds Maharatna status and is actively diversifying into renewable energy. ONGC has launched geothermal pilot projects in Ladakh and other Himalayan states, in partnership with Icelandic institutions, and targets 10 GW of renewable capacity by 2030.
About Oil India Limited
Oil India Limited (OIL), another Maharatna PSU under the same ministry, is the second-largest national oil and gas company in India. It is currently exploring geothermal prospects across the Himalayas and has signed agreements with Iceland GeoSurvey to develop the Puga Valley geothermal site. OIL is integrating geothermal energy into its broader strategy for sustainable growth.
