CHENNAI: Petronas, Malaysia’s state-owned oil and gas company, will be investing more than Rs 34,000 crore in setting up a green hydrogen and ammonia plant in southern Tamil Nadu, according to official sources.
The Tamil Nadu cabinet, which met under Chief Minister M K Stalin on Tuesday, gave its nod for five projects, including the Petronas one, official sources said. Petronas has been scouting for land to set up a green hydrogen project in southern Tamil Nadu. Other projects approved by the cabinet include Rs 400 crore investment by Caterpillar, a project by amusement park operator Wonderla, and a joint venture investment by an Indian and a foreign firm in the electric vehicle sector.
Investment in green hydrogen, a sunrise sector, is pouring into the state which is yet to unveil its green hydrogen policy. According to sources, the policy, which was expected to be announced last month, could take some more time as incentives have already been provided to the companies. Any additional incentives could be a burden on the state exchequer, sources said.
Gurugram-based ACME Green Hydrogen and Chemicals Pvt. Ltd. is already setting up a green ammonia and green hydrogen factory in the port town of Thoothukudi at a cost of Rs 52,474 crore. Many global firms like Australian-based Fortescue Future Industries, which is vying to gain first-mover advantage in hydrogen investment, are tying up with Indian companies to set up a plant in the country. Mark Hutchinson, chief executive officer of FFI, said his company has tied up with Pune-based Thermax but refused to divulge the scale of investment in India.
Interestingly, most of the large-scale hydrogen projects across the globe are only in the drawing-board stage. The cost of producing per kg of green hydrogen is more than $12 to $15, which is currently not economically viable.
CM likely to visit Japan, Singapore this month
But experts like Australia’s chief scientist Dr Alan Finkel, who framed Australia’s roadmap to net-zero emission by 2050, have exuded hope that the cost will come down with better technology and innovation. Apart from Petronas, the other projects taken up for discussion include investment by Caterpillar.
“This not a greenfield investment,” sources told TNIE. Top officials stated that a press briefing will be held on Wednesday. The cabinet meeting comes amid talks about CM’s likely visit to Singapore and Japan later this month.
Rs 400 crore project
Other four proposals include a Rs 400 crore project by Caterpillar, one by amusement park operator Wonderla, and a JV in the e-vehicle sector involving a foreign company