The production cost of green hydrogen, which holds the key to carbon neutrality across the world, should fall to $1 per kg for its broader adoption, Adani Group chairman Gautam Adani said on Tuesday.
At present, the production cost ranges between $3 and $5 per kg.
“Companies with backward integration are the only ones who will be able to provide the world with affordable green molecules,” Adani said in his blog for the 54th annual meeting of the World Economic Forum, adding that various policy measures are needed to make green hydrogen affordable.
“For India, the equitable solution is not to replace one fossil fuel with another but to leapfrog to renewables and green hydrogen. The decrease in solar costs can be replicated with green hydrogen. This shift will help India achieve energy security and improve air quality in its cities,” he said.
“It will also contribute to food security by eliminating the uncertainties of imported ammonia prices, a crucial component in fertilisers. Most importantly, it will offer the world a chance to avert the adverse impacts of climate change,” he added.
The blog, which highlights the viability of green hydrogen as a clean fuel with zero-emissions, provides a deeper understanding of the role green hydrogen can play in shaping the energy landscape. It also states that hydrogen is a potential energy storage medium and can produce electricity in fuel cells with water as the only waste product.
Adani New Industries (ANIL), a group company, is developing solutions to produce “competitive” green hydrogen and its associated derivatives. ANIL’s first project of 1 million metric tonnes per annum (MMTPA) green hydrogen is being implemented in phases in Gujarat.
The initial phase is expected to start production by FY27. Depending on market conditions, ANIL aims to increase capacity to up to 3 MMTPA of green hydrogen in the next 10 years, with an investment of about $50 billion.