Adani Group is planning to invest $9 billion to launch its green hydrogen business. This will make Adani Group a significant player in the green hydrogen sector, aiming to produce the world’s cheapest green hydrogen and export it to Europe and some Asian countries.
Phase One of Green Hydrogen Production
In the first phase, Adani aims to produce 1 million tonnes of green hydrogen per year. Green hydrogen is created by using renewable energy to split water into hydrogen and oxygen. Adani’s green hydrogen project is based in the Rann of Kutch, Gujarat.
Investment Breakdown
Adani Group, through Adani New Industries Ltd., will invest around $4 billion in manufacturing components and equipment required for the production cycle. This initial investment will support future expansion phases.
Adani’s Green Hydrogen Rivals
Other companies in the green hydrogen space include Larsen and Toubro Ltd, Indian Oil Corp. Ltd, Acme Group, and Oil India Ltd.
Environmental Impact
Green hydrogen is crucial for countries aiming to reduce carbon emissions and meet net-zero goals. Using railways for transportation helps Adani Group reduce CO2 emissions by 10,000 metric tonnes and save 270 million liters of fuel.
Future Plans and Capacity
Adani plans to develop a 5GW electrolyzer manufacturing capacity, which will require an investment of $4.5 – $5 billion. The first phase will use alkaline electrolyzers, which require nine kg of water and 50-55 kWh of electricity to produce one kg of hydrogen.
Transport and Export
Adani Group will use its ports on India’s west coast to transport green hydrogen and its derivatives to other countries. The company plans to hire specialized ships to transport the green hydrogen.
Global Market and Partnerships
In September, Adani formed a joint venture with Japan’s Kowa Group to sell green hydrogen in Japan, Taiwan, and Hawaii. Discussions are also underway with other countries for future sales.
Job Creation and Infrastructure
Adani’s green hydrogen business is expected to create 7,500-10,000 new jobs. The group is also developing port infrastructure to support the export of green hydrogen and its derivatives.
Competitors and Collaborations
Adani is competing with Larsen and Toubro Ltd, GAIL, Indian Oil Corp. Ltd, ACME Group, and Oil India Ltd, who are also working on green hydrogen projects.
Future Investments
Adani plans to invest $100 billion in green energy by 2030, including building an integrated green hydrogen ecosystem. This ecosystem will include three giga factories to develop solar panels, wind turbines, and hydrogen electrolyzers.
By 2030, India will need over 30GW of electrolyzer capacity and 100GW of renewable capacity to produce 5 million tonnes of green hydrogen. The government aims for 40% of India’s hydrogen consumption to come from green hydrogen by 2030.
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