Gautam Adani says green hydrogen will help India march-fast towards net-zero emissions

In a recent statement, Gautam Adani has said that green hydrogen will play a pivotal role in India’s journey towards achieving net-zero carbon emissions. Adani suggested that the current high cost of green hydrogen could be mitigated by adopting a model similar to the successful one employed in the solar power industry.

Expressing his views in a blog post for the World Economic Forum (WEF), the head of the diversified Adani Group highlighted the potential of transitioning to renewables and green hydrogen to enhance India’s energy security and address air quality issues in urban areas.

Green hydrogen, produced by utilizing renewable electricity to split water, serves as a clean fuel without contributing to carbon emissions. Its applications range from serving as a feedstock in industries such as steel and oil refineries to functioning as a fuel for automobiles, generating water when burned.

While acknowledging the progress made in renewable energy, Adani pointed out its dependency on specific weather conditions. He asserted that green hydrogen could emerge as a viable alternative to fossil fuels, with the condition that the production cost of renewable energy decreases faster than that of green hydrogen.

Adani suggested that vertical integration, involving a company taking control of all upstream and downstream activities related to its primary offering, could substantially reduce the production costs of green hydrogen. He underscored the potential of green hydrogen as the final step in achieving net-zero goals, particularly in various sectors within India.

In the same blog, Adani acknowledged the current high cost of green hydrogen and emphasized the need for cost reduction. He advocated for India to leapfrog directly to renewables and green hydrogen instead of replacing one fossil fuel with another. Drawing a parallel to the significant decrease in solar costs over the years, he expressed confidence that a similar trend could be replicated in the cost trajectory of green hydrogen.

Recently, Adani Total Gas Ltd (ATGL) unveiled plans for a green hydrogen blending pilot initiative in Ahmedabad, Gujarat, India that aims to combine green hydrogen with natural gas to serve over 4,000 residential and commercial customers in the city.

Last September, Adani Global Pte Ltd, a Singapore based wholly-owned subsidiary of Adani Enterprises Ltd., announced a 50:50 joint venture with Kowa Holdings Asia for sales and marketing of green ammonia, green hydrogen and its derivatives.

Last month, there were reports indicating that Adani Enterprises intends to secure $4 billion from both domestic and international banks to finance its initiatives in green hydrogen.