Reliance Industries Ltd., controlled by Indian billionaire Mukesh Ambani, is assessing new technologies for making electrolyzers in its efforts to produce low-cost green hydrogen in the country.
As part of the push, the company also plans to bid for any manufacturing-related incentives the government may offer to encourage the technology, Kapil Maheshwari, president for new energy at Reliance, said at the BloombergNEF summit in New Delhi on Wednesday.
Prime Minister Narendra Modi’s government unveiled the first phase of its green hydrogen policy in February, offering a range of incentives for companies to set up projects. India is considering offering more “sweeteners” to producers, Energy and Renewable Energy Minister Raj Kumar Singh said last week.
Green hydrogen has drawn tens of billions of dollars in investment pledges from investors including Ambani and rival tycoon Gautam Adani. The fuel, produced by splitting water using clean energy such as wind power, is seen as critical to decarbonising hard-to-remove industries such as oil refineries and steel mills, and helping meet global targets to reduce emissions and reduce global warming. against the earth.
Maheshwari said India should provide assurance on the policy and help build a market for green hydrogen by requiring some industries to buy the fuel, a move the government is already discussing.
Reliance will pursue an aggressive goal of producing green hydrogen at $1 per kilogram by the end of this decade, Ambani said last year. At the time, the cost of producing the fuel in India was between $2.22 and $4.62 per kilogram.
Ambani and Adani have pledged more than $140 billion in green investment as their fossil fuel-powered empires turn away from oil and coal. Green hydrogen is central to this shift as the two tycoons champion the government’s ambition to make India a global leader in the production and export of this fuel.