ACME Cleantech Solutions Pvt Ltd (ACME) and Indraprastha Gas Limited (IGL) have signed a memorandum of understanding (MoU) to explore the potential business opportunities of Green Hydrogen.
The two companies will work together to promote the adoption of green hydrogen and create demand for it in the country. They will also explore the opportunity of setting up hydrogen generation plants, including electrolyzers to blend Green Hydrogen in IGL’s existing pipeline networks supplying gas to households, industrial & commercial setups and CNG for vehicles.
Green hydrogen is a clean form of hydrogen that is produced by using renewable sources of energy like wind or solar power. It is considered a key element in the transition towards a low-carbon economy as it has the potential to significantly reduce carbon emissions.
According to the International Energy Agency (IEA), hydrogen is set to play a key role in achieving global climate targets, with its demand expected to increase by more than six times by 2050. Green hydrogen is considered a promising alternative to traditional hydrogen production methods as it is produced using renewable energy sources, which can help reduce carbon emissions.
ACME and IGL’s partnership to explore the potential business opportunities of Green Hydrogen is expected to have a significant impact on the Indian economy. The companies will work jointly to create demand for green hydrogen in the country, which will help accelerate the adoption of clean energy technologies. The collaboration will also help develop the infrastructure required for the production and distribution of green hydrogen, which can benefit multiple sectors of the economy.
The partnership will enable ACME to leverage IGL’s ready-made network to blend green hydrogen, while IGL can benefit from ACME’s experience and expertise in the renewable energy sector. The companies will also cooperate on policy matters and help the industry and government to bring in an enabling regulatory framework that facilitates and incentivizes customers to provide long-term offtake commitments for green hydrogen and green ammonia.
However, there are potential challenges associated with the adoption of green hydrogen. One of the biggest challenges is the cost of production, which is currently higher than traditional methods of hydrogen production. The high cost is mainly due to the fact that the production of green hydrogen requires renewable energy sources, which are still more expensive than fossil fuels. However, with the increasing adoption of renewable energy sources, the cost of production is expected to come down in the future.
Another challenge is the lack of infrastructure required for the production and distribution of green hydrogen. The production of green hydrogen requires a significant amount of energy, and the distribution infrastructure required for green hydrogen is different from that of traditional hydrogen. However, the partnership between ACME and IGL can help overcome these challenges by creating the necessary infrastructure required for the production and distribution of green hydrogen.