BackGreenko forms JV with John Cockerill for electrolyzers
The partnership will strengthen India’s green hydrogen ambitions and its clean energy programme
PremiumNEW DELHI : Greenko Group has set up a joint venture (JV) with Belgium’s John Cockerill for electrolyzers as part of its green hydrogen and ammonia manufacturing plans.
The Belgium-based maker of high-capacity alkaline electrolyzers will supply them exclusively to Greenko ZeroC, a unit of Greenko Group. In addition, the group will set up a 1 million tonnes per annum ammonia manufacturing plant for exports that require 2 gigawatts (GW) of electrolyzers.
Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer powered by renewable energy sources such as wind and solar.
The fuel can be a game changer for the energy security of India, which imports 85% of its oil and 53% of gas requirements. To promote clean fuels, India is considering making it mandatory for fertilizer plants and oil refineries to purchase green hydrogen.
“India has the opportunity to export the lowest-cost clean ammonia in the world," Greenko president and joint managing director Mahesh Kolli told Mint.
Indian firms, including Reliance Industries Ltd, Adani Group, and Acme Solar Holdings Ltd, have announced their green hydrogen plans. During the International Solar Alliance (ISA) assembly, a solar hydrogen programme was also launched to produce the emission-free fuel at $2 per kg, sharply lower than the present price of $5 per kg.
“The quantity of hydrogen consumed in India is currently 5-6 mtpa, and replacing a quarter of that with green hydrogen will create a nascent domestic market with a supply chain that will create opportunities to substitute at least 3 mtpa of ammonia imports," the companies said in a joint statement.
Greenko has India’s largest operational clean energy portfolio of 7.3 GW. It is also building power storage projects as part of its plan to provide on-demand power from wind and solar projects and partnering with state-run NTPC Ltd to develop “round-the-clock" power supply from renewable sources.
Hyderabad-based Greenko is backed by GIC Holdings Pte Ltd, Abu Dhabi Investment Authority and Japan’s ORIX Corp. While GIC Holdings Pte. Ltd and Abu Dhabi Investment Authority currently hold 56% and 14%, respectively, in Greenko, Japan’s Orix Corp. has a 17.5% stake.
Greenko founders Kolli and Anil Kumar Chalamalasetty own the remaining stake.
“GZC and John Cockerill will combine their strengths to collaborate in all spheres of market evolution for green hydrogen electrolyzers, which converts clean energy into carbon-free hydrogen. They will also innovate technologies to manufacture carbon-negative fuels, hastening the energy transition that companies and countries are undertaking," the statement added.
“This partnership will not only help curtail India’s energy imports; it will also facilitate a turnaround to enable energy exports. And it will strengthen India’s green hydrogen ambitions as part of a wider renewable energy programme that will see India run the world’s largest energy transition programme," Chalamalasetty, Greenko’s chief executive officer and managing director said in the statement.
India plans to soon call bids for building 4 GW of electrolyzer capacity as part of its energy security strategy.
In his Independence Day speech, Prime Minister Narendra Modi announced a National Hydrogen Mission.
As part of the green hydrogen push, the draft Electricity Rules, 2021, have allowed the emission-free fuel’s purchase to help meet renewable purchase obligations.
“India has abundant natural resources, a large domestic market and the potential to cater to the growth of this market regionally and globally," Jean-Luc Maurange, John Cockerill’s CEO, said in the statement.
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