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New Delhi: Gautam Adani-led Adani Group has signed a non-binding Memorandum of Understanding (MoU) with Ballard Power Systems to explore the possibility for commercialisation of hydrogen fuel cells in various mobility and industrial applications in India.
Under the MoU, both the parties will examine various options to cooperate, including potential collaboration for fuel cell manufacturing in India, said a statement from Adani Group.
Hydrogen is increasingly viewed as a critical medium for the decarbonization of energy, industry, and mobility. Adani aims to be one of the largest green hydrogen producers in the world through accelerated investment in renewable energy.
Adani New Industries Limited (ANIL), the newly formed subsidiary of Adani Enterprises will anchor the efforts under the agreement.
“Our ability to build a world-class green hydrogen value chain will be critical in facilitating the energy transition and we are excited to partner with Ballard, a global leader in fuel cell technology, to create a shared fuel cell ecosystem in India. We will be deploying innovative use cases across our businesses with fuel cell trucks, mining equipment, marine vessels, off-road vehicles, and critical industrial power. We will shape the industry through this strategic collaboration," said Vneet S. Jaain, Director, Adani New Industries Ltd.
Randy MacEwen, Ballard’s President & CEO said: “India represents a new growth opportunity for Ballard, and we look forward to working with the Adani group to support and accelerate their energy transition and decarbonization goals."
After announcing in November 2021 to invest $70 billion in the new energy space of the next decade, the Gautam Adani's logistics-to-energy conglomerate last month announced the setting up of a new subsidiary, ANIL to undertake green hydrogen projects, generation of low carbon electricity and manufacture of wind turbines, solar modules and batteries.
The company aims to become the world's largest renewable energy company and produce the cheapest hydrogen.
The announcement of the partnership comes just days after the Centre rolled out the first part of the much-anticipated Green Hydrogen Policy.
On February 17, the Union Ministry of Power unveiled India’s new green hydrogen policy, promising cheaper renewable power, fee waiver for inter-state power transmission, land in renewable energy parks, and mega manufacturing zones to help local industries wean themselves off fossil fuels.
India’s total hydrogen demand is expected to touch 11.7 million tonne (mt) by 2029-30 from the current 6.7 mt. Around 54% or 3.6 mt of India’s annual hydrogen consumption of 6.7 mt is utilized in petroleum refining and the rest in fertilizer production. This is, however, ‘grey’ hydrogen, produced from fossil fuels such as natural gas or naphtha. The government now plans to promote the usage of green hydrogen through the new policy.
Adani also faces competition from Mukesh Ambani-led Reliance Industries which too has announced mega green hydrogen projects to decarbonise their businesses.
The major emphasis among bid corporate for developing green hydrogen comes amid the government massive push towards carbon neutrality. According to Prime Minister Narendra Modi's commitment at the COP26 summit at Glasgow made in November 2021 India aims to achieve net zero carbon emission by the year 2070.
