The International Energy Agency put the global production cost of green hydrogen at $3 to $8 per kilogram in 2021.
• India's green-hydrogen ambitions stand an opportunity to clash with the conglomerate of Reliance Industries and Adani Group. A lot depends on their success.
India's environmentally friendly power energy objective relies on the outcome of the country's two tycoons, Mukesh Ambani and Gautam Adani, as they move their business realms to environmentally friendly power.
Last week, Mr Ambani-led Reliance Industries said it would consider doubling its investment in clean-energy hardware manufacturing, once existing plans are completed. India's most valuable company first unveiled plans to build four giant factories in India for the production of photovoltaic panels, energy storage, electrolysers for green hydrogen and fuel-cell systems. It has now announced a fifth facility: a power electronics plant to make equipment used to connect new energy systems.
Reliance is breaking away from its oil-refining and petrochemical businesses - the lifeblood of the group. Mr. Ambani and Mr. Adani, the founder and chairman of the Adani Group, have said that they intend to invest more than $140 billion in green industries over the next 15 years. Green hydrogen—hydrogen produced from renewable energy—is at the heart of these plans. Successful implementation will help India achieve carbon neutrality by 2070 and reduce vulnerability to external energy shocks.
However, much depends on these companies successfully reducing production costs for green hydrogen, so it could become a viable alternative to conventional fuels – like what happened with solar over the past decade, on a large scale. Thanks to China's large-scale manufacturing manufacturing.
The International Energy Agency has set the global production cost of green hydrogen at $3 to $8 per kilogram in 2021. M/s Ambani and Adani think they can bring it down to $1 in the next 10 years. India itself provides incentives such as free transmission of renewable electricity from one state to another for the production of hydrogen and ammonia. According to Rystad Energy, India has the 10th largest green hydrogen production pipeline in the world. Nonetheless, India is far from alone in its ambitions: plans are underway around the world, including as far-flung places as Mauritania and Papua New Guinea.
Minh Ke Lay, head of hydrogen research at Rystad, believes that Reliance and Adani are in a somewhat unique position globally because they are able to control costs as they establish a complete hydrogen supply chain with the production of solar panels and electrolysers. want to do. But he still sees cost targets as quite aggressive. To be successful they will need to rapidly increase their renewable energy generation capacity.
They will definitely have a fighting chance. India, the third largest emitter of greenhouse gases, has established itself as one of the world's largest renewable-energy markets – and its growing electricity demand and government support for green energy make it one of the emerging markets for renewables. Makes it the most attractive investment destination for energy. As per a 2021 report from Climatescope.
Last week, Mr Ambani said that Reliance aspires to make India a credible alternative to China in new energy manufacturing. While it may be several years away, it will be a big step forward for India - to say nothing of Reliance if it succeeds.
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