Business India ×
 Climate Change

Energy
Published on: Feb. 2, 2022, 7:43 p.m.
Will Ambani make India a global hydrogen hub?
  • Ambani has promised to produce green hydrogen for $1 per kg

By Business India Editorial

Mukesh Ambani has recently said that he plans to invest $75 billion towards renewable infrastructure, which includes generation plants, electrolysers, and solar panels. There is increasing speculation that the initiative involves converting all of that renewable energy into hydrogen, which would be one of the most significant investments in the next-generation fuel.

According to analysts, Reliance is likely to choose hydrogen in order to sidestep India’s wholesale electricity sector, which is governed by financially strapped utilities and plagued by overdue payments. 

Gagan Sidhu, director at the Centre for Energy Finance at CEEW, said: “Reliance is preparing itself to capture the entire value chain of the green hydrogen economy. They clearly have seen the writing on the wall.”

Green hydrogen, which is produced from water and clean electricity, is regarded as important to the world’s emissions reduction aspirations since it will assist consumers and major industries such as steel in transitioning to lower-carbon fuels. Prime Minister Narendra Modi stated last year that India, the world’s third-largest emitter of greenhouse gases and a major energy importer, will become a global centre for fuel production and export.

While Reliance hasn’t indicated how much of the capital will go towards hydrogen, the $75 billion investment in clean energy is by far the largest in the country. Other corporations, including Adani Enterprises Ltd. and state-owned energy giants NTPC Ltd. and Indian Oil Corp., have plans for green hydrogen.

According to reports, the number of countries having a hydrogen strategy more than doubled last year to 26 and projected plans from the US, Brazil, India, and China could overhaul the global market. However, the industry is still in its early stages and is far from economically viable.

The potential to make it at a reasonable cost will be a real challenge. Green hydrogen generated by renewables is not competitive with traditional fuels, costing roughly twice as much as coal, India’s primary source of electricity generation. Ambani has promised to produce green hydrogen for $1 per kilogram, a more than 60 per cent decrease from current pricing. He said last year: “Reliance will aggressively pursue this target and achieve it well before the turn of this decade.”

To get to a $1 price point, the cost of electrolyzers, the equipment needed to produce green hydrogen, will have to drop significantly. Furthermore, the capacity utilization of more than 80 percent will be required, and this should be powered by consistent energy supplies costing less than 3 cents per kilowatt-hour. To obtain round-the-clock supplies, additional energy resources such as storage or hydropower will be required, which may drive up the cost above the desired level.

Reliance, which targets to be net-zero by 2035, said it expects to produce 100 gigatonnes of renewable energy by the end of the decade, accounting for one-fifth of the country’s non-fossil capacity ambition. The company stated that it is looking at sites in Gujarat and has proposed 450,000 acres from the state government in Kutch, a preferred spot for renewable energy in the country.


E-vehicles

Ola has set a target of opening 200 outlets by the end of 2022

Ola opens 14 experience centres

Published on Dec. 1, 2022, 8:54 p.m.

Ola has set a target of opening 200 outlets by the end of 2022

Mobility

Kerala goes for environment-friendly rides

Kerala to get e-double-deckers

Published on Dec. 1, 2022, 8:40 p.m.

Kerala goes for environment-friendly rides

Renewable Energy

Google, Microsoft to reduce carbon footprint

Google, Microsoft go the RE way

Published on Dec. 1, 2022, 8:19 p.m.

Google, Microsoft to reduce carbon footprint

Global warming

Microbes can ‘switch on’ to cope with climate change

Microbes and climate change

Published on Dec. 1, 2022, 7:55 p.m.

Microbes can ‘switch on’ to cope with climate change

E-MAGAZINE

Company Feature

Classrooms go live, thanks to Airtel

Published on April 5, 2022, 11:25 a.m.

Despite the pandemic, Bharti Foundation has ensured that children are not deprived of learning opportunities

Column

Collaborative excellence

Published on April 4, 2022, 8:53 p.m.

A policy perspective for meeting SDG-9 in low resource setting of developing economies

Column

Innovation and infrastructure

Published on April 4, 2022, 8:10 p.m.

India is well-positioned to become a model of corporate sustainability

Column

‘More for less’

Published on April 1, 2022, 10:12 p.m.

The merger of technology and SDGs – A game-changing win of the era