India will become the hub of energy export! Preparing to invest Rs 1 lakh crore, Mukesh Ambani is gearing up – EQ
In Short : “Mukesh Ambani gears up to invest Rs 1 lakh crore, eyeing India’s potential to become an energy export hub, signaling significant preparations to tap into the country’s growing energy market.”
In Detail : India imports billions of dollars worth of crude oil annually. But this situation is going to change soon. Preparations are being made to produce green hydrogen and green ammonia on a large scale in the country. For this, there are preparations to invest Rs 1 lakh crore in Kandla. Reliance is going to play a big role in this.
- India imports 85% of its crude needs.
- Now preparations to make the country a hub of energy export
- Plan to invest Rs 1 lakh crore in Kandla
New Delhi : Mukesh Ambani’s Reliance Industries Ltd (RIL) and Larsen & Toubro (L&T) as well as energy companies Greenco Group and Welspun New Energy are investing extensively in green energy at the Deendayal Port Authority (DPA) in Kandla, Gujarat. In preparation. According to sources, these companies will set up green hydrogen and green ammonia units there. Up to Rs 1 lakh crore can be invested on this project. This will be the largest investment ever in this sector and energy infrastructure sector in India. The port authority had received expressions of interest for 14 land parcels of 300 acres in October last year. Each land parcel is earmarked for 10 lakh tonnes per annum (MTPA) of green ammonia. According to sources, last month DPA allotted plots to four companies.
A source said DPA offered 14 plots with a total of 4,000 acres of land. Out of this, six plots have been allotted to Reliance. L&T has been allotted five plots, Greenco Group two and Welspun New Energy one. These four companies had made the highest bid in the auction. This information has not been made public due to the implementation of the Model Code of Conduct before the general elections. Sources say that a formal announcement in this regard will be made in June after the elections. Kandla Port aims to produce 7 MTPA green ammonia and 1.4 MTPA green hydrogen. Located in the Gulf of Kutch, DPA is one of the major ports on the west coast of the country.
what is the target
Green hydrogen (GH2) is made by electrolyzing water using electricity obtained from renewable energy sources. It does not emit any greenhouse gas. This is a part of the global effort to turn green hydrogen into fuel. This can help the world achieve net-zero emissions targets. Ammonia is the largest end-user segment for green hydrogen and plays a key role in the large-scale production of GH2. As part of the National Green Hydrogen Mission, the Ministry of Ports, Shipping and Waterways has identified three ports to be made green hydrogen hubs by 2030. Apart from DPA, these include Paradip in Odisha and Chidambaranar Port in Tamil Nadu.
DPA had last year signed 13 MoUs with energy companies including ReNew EFuels, Statkraft India, Welspun New Energy, Sembcorp Green Hydrogen India, Torrent Power Ltd, NTPC Green Energy and Greenko Group. Reliance, Greenco, Welspun and DPA did not respond to queries. L&T also declined to comment.
The Ministry has also prepared a National Action Plan for Green Shipping. This includes increasing the use of renewable energy and green fuels to reduce vehicle emissions at ports. It also aims to introduce ammonia and hydrogen as fuel for future use at ports. The National Green Hydrogen Mission aims to make India a global hub for the production, use and export of green hydrogen to reduce trillion dollar energy imports. The mission aims to achieve the target of green hydrogen production of five MTPA by 2030. Also, there is a 125 GW renewable energy target and a reduction of Rs 1 lakh crore in fossil fuel. This will reduce greenhouse gas emissions by about 50 MT annually. There is a possibility of investment of Rs 8 lakh crore on this mission.
