According to its chairman and CEO, India’s ReNew Power is looking into ways to expand its use of green hydrogen in those two countries and other countries as well.
With active projects, the company’s total wind and solar generating capacity are 13 gigawatts (GW), providing close to 1.8% of India’s annual electricity needs.
After signing a framework agreement at the COP27 climate summit last year, ReNew Power is currently investigating the potential of green hydrogen, especially in Egypt, Sumant Sinha told Reuters in Davos at the World Economic Forum.
Sinha stated, “We’re undertaking some development work to see whether we can get to that position, but we haven’t made any investment decisions yet.
The green hydrogen would be transported across the Suez Canal from the plant, which would be around 200 kilometers south of Cairo, the capital.
“The energy will be shipped from where it is produced through lines built by the Egyptian government to the economic zone of the Suez Canal, where we will, if necessary, convert it to ammonia, put it on a ship, and, depending on demand, ship it through the Suez Canal to either the European side or to the Asian side,” he said.
Within 18 months after the contract’s signature, a final investment choice will be made about the project.
According to government data, India, one of the world’s major emitters of greenhouse gases, plans to raise the generation of renewable energy to 500 GW by 2030 from a present output of roughly 120 GW.
About 180 GW of this total has already been put up for auction for solar and wind energy projects.
About 12% of the market for new products belongs to ReNew Power, according to Sinha.
ReNew Power hopes to contribute to India’s plan to produce 5 million tonnes of renewable hydrogen by 2030.
With a 6% annual growth rate, India is the third-largest electrical market in the world.
The natural resources in India are excellent, and we can ship from India just like we do from Egypt.
ReNew Power has raised more than $6.5 billion in money, both in the form of stocks and debt, from investors such as Goldman Sachs and the national wealth fund ADIA of Abu Dhabi.
It has been more challenging for other nations, notably in Africa, to have access to the global financial markets, according to Sinha, who claimed that funding was simple for his cleantech company because India is a big market with “pretty sophisticated” businesses.
According to Sinha, a weaker prognosis for the global economy may also result in reduced input costs and loan rates, which would improve the environment for cleantech businesses.
Rising interest rates, he said, are “one of the key reasons there is so much volatility in the capital markets, especially for cleantech firms.”