Indian renewable energy company ACME and city-gas distribution company Indraprastha Gas Limited (IGL) have signed a Memorandum of Understanding (MoU) to jointly explore business opportunities in Green Hydrogen supply.
This collaboration aims to develop the generation of Green Hydrogen and its distribution. The two companies plan to work towards creating demand for the developing form of clean energy and increasing its adoption by customers.
The companies will identify areas and projects of green hydrogen in India, including exploring the chance of starting green hydrogen generation plants and using them to blend with the existing pipeline network of IGL. The company already supplies gas to households and industrial and commercial consumers. This partnership will benefit both companies as IGL has an established network, and ACME brings its expertise in renewable energy.
Sanjay Kumar, Managing Director of IGL, said the firm already has experience supplying hydrogen-enriched Compressed Natural Gas (H-CNG) as a pilot project in Delhi. Still, the usage of green hydrogen in the automobile sector is currently in the preliminary stage. The company would like to explore its utility in the industry with the support of its distribution network.
Green hydrogen, also known as renewable hydrogen, is produced by electrolyzing water, separating hydrogen and oxygen using electricity generated by renewable energy sources such as wind or solar power. This process produces zero emissions and can help decarbonize sectors that are challenging to electrify, such as transportation and industry.
India’s push towards green hydrogen is in line with the country’s goal to reduce carbon emissions under the Paris Agreement. The country has set a target of achieving 450 GW of renewable energy by 2030, including 280 GW of solar power.
However, green hydrogen production is still in its early stages, and its current cost is significantly higher than fossil fuel-based hydrogen. The high cost is due to the limited availability of renewable energy sources and the high capital cost of the electrolyzer. Additionally, green hydrogen’s production and transportation require significant infrastructure investments, which pose challenges to its adoption.
Despite these challenges, the demand for green hydrogen is expected to increase as countries worldwide adopt measures to reduce carbon emissions. This collaboration between ACME and IGL is a significant step towards achieving India’s renewable energy goals and promoting the adoption of clean energy in the country.
