In powering the mechanization of human existence, energy forms the ultimate resource. Its sustainable and unsustainable sources are deciding the course of development of a country. The scattered availability of fossil fuel and limited technical support in harnessing sustainable energy has played a great role in the industrialization of a country. Owing to the same problem, countries like India are now starting to focus on harnessing renewable & clean sources of energy due to its universal availability & limited environmental consequences. In this race, the Indian private sector is now leading the charge to make the nation self-reliant for its energy needs.
$50 billion investment in 10 years to produce green hydrogen in India
Taking a great leap forward in the Indian energy transition, Adani New Industries Limited (ANIL) has announced to invest around USD 50 billion in green hydrogen over 10 years. The deal envisages jointly creating the world’s largest green energy ecosystem to cut reliance on fossil fuels and achieve a net-zero carbon emission targets.
Keeping the ambitious goal in mind, Adani Group has entered into a new partnership with energy giant TotalEnergies of France to jointly achieve the target. Forming the strategic alliance, TotalEnergies will acquire a 25% minority stake in Adani New Industrie Limited (ANIL) from Adani Enterprises Limited (AEL).
The Adani Group and TotalEnergies will create the world’s largest Green Hydrogen ecosystem. This joint energy platform by the two pioneers of energy transition and clean energy adoption further strengthens the public ESG commitments made by the companies.
— Adani Group (@AdaniOnline) June 15, 2022
Stressing upon the ability of the partnership to disrupt the clean energy market, Mr. Gautam Adani, Chairman, Adani Group said “our confidence in our ability to produce the world’s least expensive electron is what will drive our ability to produce the world’s least expensive green hydrogen, This partnership will open up several exciting downstream pathways”.
Target to disrupt the clean energy market
The deal can be seen in the light of the growing stress of the government of India in the clean energy sector. In February 2022, the Government of India had released its Green Hydrogen Policy under the National Hydrogen Mission. The aim is to facilitate the transition from fossil fuel to Green Hydrogen as energy carriers. The Policy envisages creating a parallel economy of hydrogen-based fuel and the following provisions have been made in the policy to achieve the target.
- Hydrogen produced by way of electrolysis of water using renewable energy will be called Green Hydrogen.
- Waiver in inter-state charges for 25 years
- Connectivity shall be granted on a priority level for the generation and manufacturing of Green Hydrogen
- Land in Renewable Energy Parks can be allotted for the purpose
- The government will propose to set up Manufacturing Zones
- Single Portal for all statutory clearances
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With its ambitious Nationally Determined Contribution (NDCs) obligations in the Paris Climate deal, India targets to reduce its emission intensity as well as it plans to increase its renewable shares of energy significantly. Moreover, the uncertain world order and price rise in the crude oil market has adversely impacted the budget as well as the environment of the country. So stress is upon to strategically secure the energy demand through renewable sources. Adani Group’s constant investment and partnership alliances are directed in the same direction. The ambitious target to invest around $50 billion in green hydrogen will disrupt the renewable market in India and will ultimately reduce the cost of energy.
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