Adani Global, a subsidiary of the Indian conglomerate Adani Group, and Japan’s Kowa Holdings Asia have formed a joint venture (JV) to market and sell green hydrogen and ammonia in Japan, Taiwan, and Hawaii.
The JV will focus on the green hydrogen produced by Adani New Industries Limited (ANIL), an arm of Adani Group. ANIL’s first project, slated to start production by 2027, aims to produce one million metric tonnes per annum (MMTPA) of green hydrogen. The strategic partnership is an extension of Adani’s longstanding relationship with Kowa, leveraging the latter’s market presence in Asia.
Adani further revealed plans to scale up production capacity to 3 MMTPA over the next decade, contingent on market conditions, with an estimated investment of $50 billion.
ANIL’s strategy involves creating an integrated hydrogen ecosystem encompassing three primary streams: manufacturing and supply chains, green hydrogen generation, and the production of downstream derivative products like green ammonia, green methanol, and sustainable aviation fuels. This comprehensive approach positions Adani to address various segments of the hydrogen value chain, aiming to enhance efficiency and market reach.
Adani’s ambitious plans are in line with global trends where nations and corporations are increasingly investing in green hydrogen as a clean energy source. Countries like Germany and Japan have set aggressive targets for hydrogen production and usage, supported by substantial government subsidies and strategic partnerships. Adani’s target to produce up to 3 MMTPA of green hydrogen aligns with these international benchmarks, though achieving such scale will require overcoming significant technical and economic challenges.
Despite these setbacks, the Adani-Kowa JV represents a pivotal effort to advance green hydrogen initiatives. If successful, the venture could significantly contribute to the global supply of green hydrogen, aiding the transition to a low-carbon economy. The collaboration also highlights the increasing importance of international partnerships in scaling up hydrogen production and distribution.
