MUMBAI: Setting sight on tapping the potential of hydrogen, the Adani Group is planning to develop a fully-integrated green hydrogen ecosystem in India.
It will invest up to $50 billion over the next 10 years in developing the green hydrogen ecosystem. Hydrogen produced with water or renewable electricity is termed 'green hydrogen'.
The company aims to reduce the cost of production of green hydrogen, which is seen as the fuel of the future. The company plans to bring down the production cost of green hydrogen to less than approximately $2 per kilogram which is currently in the range of $3 to $6 per kg.
“We are setting up a fully-integrated green hydrogen ecosystem in India under our subsidiary Adani New Industries Limited (ANIL) with an objective to incubate, build and develop an end-to-end integrated ecosystem for the manufacture of green hydrogen,” said the company in its Red Herring Prospectus issued yesterday. “We intend to invest approximately up to $50 billion over the next 10 years in the green hydrogen ecosystem for production of up to 3 million metric tonnes (MMT) of green hydrogen. In the initial phase, we plan to develop green hydrogen production capacity of up to 1 MMT,” it said.
For green hydrogen, the Government of India has set a production target of 5 MMT per annum by 2030. This will require an electrolyser installation capacity of 27 GW – 30 GW and nearly 110 GW – 130 GW of renewable capacity.
The company’s green hydrogen ecosystem has three main components. It includes the manufacturing of equipment required for the manufacture of renewable power and green hydrogen, manufacturing of green hydrogen and the renewable power required for it, and manufacturing of downstream products.
“We have completed studies for the development of an electrolyser with an aggregate installed capacity of up to 15 GW per annum to produce green hydrogen. We expect to manufacture the electrolyser in-house at Mundra SEZ and set up the green hydrogen plant in western Gujarat and Rajasthan,” said the company.
“We have also completed studies to develop a 42-inch diameter pipeline to connect the green hydrogen facility to Mundra SEZ (Special Economic Zone) which will house our downstream products manufacturing facilities,” said the company.
To further bolster its green hydrogen ecosystem, the company partnered with TotalEnergies in 2022 after which the company entered into an agreement with Adani Enterprises to acquire a 25 per cent interest in ANIL.