India’s Reliance Industries is considering a plan to build a green energy plant in Australia.
According to AFR this hydrogen manufacturing project could crystallise deeper economic ties between the two countries. Reliance also plans to use its expertise in solar panel manufacturing to establish a solar farm in Australia to produce carbon-free hydrogen for export.
However, a Reliance company spokesman did not confirm the plan to AFR. The spokesman said:
“our company evaluates various opportunities on an ongoing basis. We have made and will continue to make necessary disclosures in compliance with our obligations.”
According to a company announcement to the National Stock Exchange of India, Reliance signed an MoU with the government of Gujarat state earlier this year to invest US$80 billion in green projects.
In May 2022, Reliance representatives visited Australia to explore opportunities and processing costs of producing carbon-free fuel. To cater to a low-carbon economy, Reliance has also hired 2500 scientists, engineers, and professionals.
India is the world’s third-biggest emitter of greenhouse gases and is seeking to decarbonise its economy and reduce imports of fossil fuels.
As of November 2021, India’s installed renewable energy capacity had reached 150 GW, nearly 40% of the total installed electricity capacity of 392 GW. The country aims to have 500 GW of installed renewable energy capacity by 2030 and be net carbon zero by 2070. Analysts predict that India may need AUD14.8 trillion in investments to reach its net zero goal by 2070.
Ambani has vowed to produce green hydrogen at $1 per kilogram, a more than 60% reduction from today’s costs. “Reliance will aggressively pursue this target and achieve it well before the turn of this decade,” Ambani said last year.
Reaching a $1 price point will require a dramatic drop in the cost of electrolyzers, the equipment needed to make green hydrogen, according to Debasish Mishra, a Mumbai-based partner at Deloitte Touche Tohmatsu.
