Reliance Industries Ltd., controlled by Indian billionaire Mukesh Ambani, is evaluating new electrolyzer manufacturing technologies as part of its efforts to produce low-cost green hydrogen in India.
As part of the push, Reliance plans to bid for any production-related incentives the government may offer to encourage the technology, said Kapil Maheshwari, Reliance’s president for new energy, on Wednesday at the BloombergNEF summit in New Delhi.
The government of Prime Minister Narendra Modi unveiled the first phase of its green hydrogen policy in February, offering a variety of incentives for companies to establish projects. Power and Renewable Energy Minister Raj Kumar Singh stated last week that India is considering offering more “sweeteners” to producers.
Investors, including Ambani and rival tycoon Gautam Adani, have committed tens of billions of dollars to green hydrogen.
The fuel, which is produced by splitting water with clean energy such as wind power, is seen as critical to decarbonizing difficult-to-abate industries such as oil refineries and steel mills, assisting in meeting global targets to zero out emissions and combat global warming.
According to Maheshwari, India needs to provide policy certainty and help build a market for green hydrogen by requiring some industries to purchase the fuel, which the government is already considering.
According to Ambani, Reliance will pursue an aggressive goal of producing green hydrogen for $1 per kilogram by the end of this decade. At the time, the cost of producing the fuel in India ranged between $2.22 and $4.62 per kilogram.
As their fossil-fuel-fueled empires shift away from oil and coal, Ambani and Adani have pledged more than $140 billion in green investments. Green hydrogen is central to this shift, with the two businessmen championing the government’s goal of making India a global leader in the production and export of this fuel.