These 5 companies are gearing up to tap green hydrogen potential

Green hydrogen is one of the cleanest forms of energy in the world and is seen as a solution to achieve net-zero emissions.

Currently, not much green hydrogen is being produced; it accounts for less than 1% of annual hydrogen production, according to Wood Mackenzie.

The gas is produced with the help of electrolysis. According to earth.org, if this electricity for electrolysis comes from renewable sources, then the hydrogen is green; the only carbon emissions are those from the generation infrastructure.

With electrolysis, all you need to produce large amounts of hydrogen is water, a big electrolyser, and electricity.

According to equitymaster.com, India’s entire production of hydrogen comes from fossil fuels. Three-fourth of all hydrogen is projected to be green by 2050.

The US has been investing $150 million in hydrogen fuel infrastructure and development every year since 2017. Europe and Asia have also seen a $2 billion yearly investment in hydrogen fuel production.

India too has begun its green hydrogen journey. Prime Minister Narendra Modi had in August launched the National Hydrogen Mission.

Stating that companies have started making the switch, equitymaster.com has listed five of them

Reliance Industries

Reliance Industries recently announced its plans to become a net carbon-zero firm by 2035. It aims to replace transportation fuels with clean electricity and hydrogen.

It had said that it would invest Rs 750 billion over the next three years in renewable energy. Of this, Rs 600 billion will go to a 5,000-acre, green energy integrated complex called Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat.

Equitymaster has quoted analysts who have estimated that RIL will build a 2.5-gigawatt (GW) electrolyser manufacturing unit.

GAIL

GAIL (India) has also chalked out green hydrogen plans.

The state-owned company plans to build India’s largest green hydrogen plant. The company has also floated a global tender to procure an electrolyser.

GAIL has zeroed in on 2-3 sites for the unit including one at Vijaipur in Madhya Pradesh. It will take 12-14 months to set up the 10 MW plant, the largest announced so far in India.

GAIL has already started mixing hydrogen in natural gas in one of the cities, on a pilot basis. The company is testing the mix percentage before it scales it up, says the equitymaster.com

NTPC

Another state-owned company NTPC has also planned to produce green hydrogen on a commercial scale.

It is planning to do that from its upcoming The capacity of the NTPC’s hydrogen plant, situated in the 4,750 MW renewable energy park at the Rann of Kutch, will be 5 MW.

The PSU is already running a pilot project in its Vindhyanchal unit, where the cost of hydrogen is estimated to be around US$2.8-3/kg, said equitymaster.com, adding that this may fall going forward through economies of scale.

NTPC also plans to set up its first green hydrogen fuelling station in Leh, Ladakh. It will ply 5 hydrogen buses, to start with.

Indian Oil Corp

The nation’s largest fossil fuel retailer IOC has announced its plans to build a green hydrogen plant at its Mathura refinery. The unit is likely to have a capacity of around 160,000 barrels per day.

A stand-alone green hydrogen manufacturing unit is also planned at Kochi. The idea is to run hydrogen buses from Cochin airport to Thiruvananthapuram.

Larsen and Toubro

Another private company Larsen and Toubro (L&T) has plans to set up a green hydrogen plant at its Hazira complex.

It also plans to put up a few more green hydrogen plants in its other manufacturing units.