Bharat Heavy Electricals Ltd (BHEL) is one of India’s largest engineering and manufacturing companies in the energy and infrastructure sectors.
The company is now making a foray into the green hydrogen space by identifying potential opportunities in electrolyzer manufacturing and the green hydrogen value chain. In line with the company’s aspiration to diversify into emerging technology areas for growth and sustainability, BHEL is seeking to engage a business consultant to realize the potential of the hydrogen economy value chain.
According to BHEL, the company aims to increase its share of non-coal businesses while simultaneously identifying and diversifying into emerging technology areas. The potential business play in the hydrogen economy value chain is in line with this vision, and BHEL has started its efforts to realize it.
The company intends to appoint a consulting firm that has a proven track record and the necessary expertise for the scope of work, which includes creating a strategy and roadmap, recommending probable partners, providing business support for electrolyzer manufacturing, and the green hydrogen value chain.
The green hydrogen value chain has the potential to revolutionize the energy sector and reduce carbon emissions. Electrolyzers are a critical component of the hydrogen value chain, as they are used to generate hydrogen through the process of water electrolysis. Green hydrogen is produced by using renewable energy to power the electrolysis process, making it an eco-friendly and sustainable energy source.
BHEL’s entry into the green hydrogen space is expected to have a significant impact on India’s energy sector, as the country aims to reduce its carbon emissions by 33-35% by 2030. The Indian government has announced a national hydrogen mission and is actively promoting the adoption of green hydrogen in various sectors, including transportation, power generation, and industrial applications.
However, BHEL’s foray into the green hydrogen space may also face potential challenges. The company will need to invest significant resources in research and development to build its expertise in electrolyzer manufacturing and the green hydrogen value chain. Moreover, the green hydrogen market is still in its early stages, and the demand for green hydrogen is not yet sufficient to justify significant investments.