Business News/ Industry / Energy/  Indian can achieve green hydrogen cost of $1 per kg in a decade: Mukesh Ambani

MUMBAI: Mukesh Ambani, chairman, Reliance Industries Ltd (RIL), on Friday reiterated his commitment to invest Rs75,000 crore over the next three years in green energy initiatives, including the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, as the global energy behemoth shifts its focus from hydrocarbons to renewable power.

Ambani had first made the Rs75,000 crore investment announcement on 24 June at RIL's annual general meeting.

Addressing the International Climate Summit 2021, Ambani said work was underway at a brisk pace to develop the 5,000-acre giga complex, which would be one of the world's largest green energy facilities, and that RIL was on track to become a net-zero carbon company by 2035.

"Although the cost of green hydrogen energy is currently high, they are expected to fall significantly. New technologies are emerging for storage and transportation of green hydrogen which will lead to a further reduction in costs," Ambani said.

The government is planning to create an enabling green hydrogen ecosystem which will attract investments," he added.

India has targeted 450GW of renewable energy capacity by 2030, of which RIL plans to establish and enable at least 100GW of solar energy. A significant part of this will come from rooftop solar and decentralised solar installations in villages.

"This will create a pan-India network of kilowatt and megawatt scale solar energy producers who can produce Green Hydrogen for local consumption," said Ambani, adding that efforts are on globally to make green hydrogen the most affordable fuel option by bringing down its cost to initially under $2 per kg.

"Am sure that India can set even more aggressive target of achieving under $1 per kg within a decade. This will make India the first country globally to achieve $1 per 1 kilogram in a decade-- the 1-1-1 target for Green Hydrogen," Ambani said.

RIL has been focusing on a shift from oil and gas to new energy at a time when global consensus has been building for action against climate change. Energy majors including Royal Dutch Shell, Chevron Corp, and Exxon Mobil Corp are being pushed by environmentally concerned investors to cut emissions.

As part of RIL's green energy investment, the oil-to-telecom conglomerate, at a cost of Rs60,000 crore, will build an integrated solar photovoltaic module factory, an advanced energy storage giga factory and an electrolyser giga factory to manufacture modular electrolysers used for captive production of green hydrogen for domestic use as well as for global sale.

RIL's fourth initiative will be the fuel cell giga factory. A fuel cell uses oxygen from the air and hydrogen, to generate electricity. The only emission of this process is non-polluting water vapor. Fuel cells have the capacity to progressively replace internal combustion engines.

RIL's Jamnagar complex will provide infrastructure and utilities to manufacture ancillary material and equipment needed to support these giga factories.

The company will invest an additional Rs15,000 crore in the value chain, partnerships, and future technologies, including upstream and downstream industries. It will also build two additional divisions--Renewable Energy Project Management and Construction Division and Renewable Energy Project Finance Division-- to facilitate solutions for large renewable plants across the world and to provide finance solutions to the stakeholders in the ecosystem.

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Updated: 03 Sep 2021, 12:02 PM IST
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