2 min read.Updated: 05 Sep 2021, 04:54 PM ISTLivemint
With the current cost of green hydrogen produced by electrolysis estimated at around ₹350 per kg, India’s green hydrogen plan is to more than halve it to ₹160 per kg by 2029-30
NEW DELHI :
Reliance Industries Ltd (RIL) chairman Mukesh Ambani’s announcement at the recently held International Climate Summit to bring the green hydrogen cost to under $2 per kg by 2030 may provide an impetus to India’s green hydrogen plan.
As part of its energy security strategy, India plans to shortly kick-start its green hydrogen pathway by calling bids for 4 gigawatts (GW) electrolyser capacity. This comes in the backdrop of Prime Minister Narendra Modi in his Independence Day speech announcing a National Hydrogen Mission.
“Efforts are on globally to make Green Hydrogen most affordable fuel option by bringing down its cost to initially under $2 per kg. Let me assure you all that Reliance will aggressively pursue this target and achieve it well before the turn of this decade," Ambani said.
This comes in the backdrop of RIL plans to set up Dhirubhai Ambani Green Energy Giga Complex on 5,000 acres in Jamnagar as announced by Ambani at the company's annual general meeting. As part of this new playbook, RIL plans to set up giga factories for electrolyser, fuel cell, integrated solar photovoltaic (PV) module and energy storage respectively
“(I) am sure that India can set even more aggressive target of achieving under $1 per kg within a decade," he added.
With the current cost of green hydrogen produced by electrolysis estimated at around ₹350 per kg, India’s green hydrogen plan is to more than halve it to ₹160 per kg by 2029-30.
“Although the costs of hydrogen from electrolysis today are high, they are expected to fall significantly in the coming years," Ambani said in his speech.
The government also aims to extend the production-linked incentive (PLI) scheme for manufacturing electrolysers to produce green hydrogen. India’s total hydrogen demand is expected to touch 11.7 million tonnes (mt) by 2029-30 from the current 6.7 mt.
“The Indian subcontinent is truly blessed by Soorya Deva, Vayu Deva and other gods with abundant renewable energy resources," Ambani said, adding, “Taking advantage of over 300 sunny days in a year, India can easily generate over 1,000GW of solar energy on just 0.5% of our land."
As part of this green energy pivot, RIL is planning to buy solar module maker REC Group as part of the oil refiner’s ₹75,000 crore push into clean energy as reported by Mint on 8 July.
“Prime Minister Shri Narendra Modi ji has set the goal to reach 450GW of renewable energy capacity by 2030. Out of this, Reliance will establish and enable at least 100GW of solar energy by 2030," Ambani said.
This energy security push comes at a time when India is spending ₹12 trillion annually to meet the energy needs. Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyser powered by electricity from renewable energy sources such as wind and solar can be a game changer for India, which imports 85% of its oil and 53% of gas demand.
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