New Delhi: Billionaire Gautam Adani on Tuesday said green hydrogen holds the key to India’s journey to net-zero carbon emissions, and its current high cost can be reduced by replicating the solar power model.
In a blog post for the World Economic Forum (WEF), the head of apples-to-airport Adani Group said leapfrogging to renewables and green hydrogen will help India achieve energy security and improve air quality in cities.
Green hydrogen produced by splitting water using renewable electricity is a clean fuel with no carbon emissions. It can be used as a feedstock in industries like steel and oil refineries and as fuel in automobiles and produces water on being burnt.
“Renewable energy has come a long way but relies on the right weather conditions; green hydrogen could be a viable alternative to fossil fuels,” Adani said.
Green hydrogen relies on renewable energy. And so the production cost of renewable energy must fall faster than green hydrogen’s to be viable.
Vertical integration, where a company takes on all upstream and downstream activities associated with its main offering, could significantly reduce green hydrogen production costs, he said.
“Green hydrogen may be the last mile in the net-zero journey for many sectors, especially in India,” he said.
However, its current cost is high and needs to be brought down.
“For India, the equitable solution is not to replace one fossil fuel with another but to leapfrog to renewables and green hydrogen,” he said. “The decrease in solar costs can be replicated in green hydrogen.”
The cost of electricity generated from solar panels in 2011 was Rs 15 per kilowatt-hour (or per unit), which has now fallen to Rs 1.99 per unit – the lowest in the world.