Gautam Adani, the Chairman of the Adani Group, has emphasized the pivotal role of green hydrogen in the pursuit of global carbon neutrality.
Adani asserts that for widespread adoption, the production cost of green hydrogen must plummet to $1 per kilogram, a significant reduction from the current range of $3 to $5 per kilogram. This statement underscores the Adani Group’s commitment to driving affordability in the green hydrogen sector.
Adani New Industries (ANIL), a subsidiary of the Adani Group, has taken up the mantle to address this challenge. The company is actively engaged in developing solutions that will enable the production of cost-effective green hydrogen and its derivatives. ANIL’s ambitious project, aiming for the production of one million metric tons per annum (MMTPA) of green hydrogen, is already in progress in Gujarat. The anticipated commencement of production is set for the fiscal year 2027.
According to reports from FINANCIAL EXPRESS, ANIL envisions a phased expansion of its capacity to three MMTPA over the next decade. Achieving this scale requires a substantial investment of approximately $50 billion. This commitment reflects the Adani Group’s strategic vision for green hydrogen to play a transformative role in the global energy landscape.
The first phase of ANIL’s green hydrogen project is a crucial milestone, and its successful realization will mark a significant step towards India’s green energy aspirations. The scale and ambition of the project align with India’s vision of becoming a major player in the global green hydrogen market.
Gautam Adani highlights the importance of backward integration for companies aiming to provide affordable green molecules to the world. In his view, the equitable solution for India is not merely replacing one fossil fuel with another but leapfrogging to renewables and green hydrogen. Adani believes that the cost reductions witnessed in solar energy can be replicated in the green hydrogen sector, contributing to India’s energy security and improving air quality in its cities.
