Reliance hopes to increase production to lower costs to $1.50 per kilogram
With the global shortage of fossil fuels coupled with their unhealthy impact on the planet, Reliance Industries Ltd. (RIL) is implementing a transition to green energy.
Founded in 2005, Reliance Petroleum constructed a greenfield petroleum refinery and polypropylene plant in Special Economic Zone, Jamnagar.
Today, RIL is restructuring these four-billion dollar-worth units to manufacture blue hydrogen at “competitive costs”.
The current conversion of petroleum coke into synthesis gas will be replaced by the production of blue hydrogen for $1.2-$1.5 a kilogram. Consequently, once green hydrogen dominates, the syngas will be reformed into chemicals.”RIL has termed this modification a “minimal incremental investment” for being the first company to develop a hydrogen ecosystem in India.
‘Blue’ hydrogen is manufactured utilising fossil fuels but captures the carbon dioxide formed during its production, thereby reducing CO2 emissions. RIL sees this as a temporary manufacturing solution, until production costs of developing ‘green hydrogen’ from hydro electrolysis using renewable energy are lowered.
A Fortune Global 500 conglomerate, RIL aims to go net-zero by 2035. In the global quest for cleaner fuels, it faces competition from Saudi Arabia, which has formulated a plan to use a $110 billion gas field to manufacture blue hydrogen.
However, Asia’s Richest Man, Mukesh Ambani has promised to deliver green hydrogen manufactured by RIL at $1 per kilogram by the beginning of the next decade.
The $1 estimation is greater than a 60% reduction of present costs. Albeit, the RIL CEO has made his objective to revert to renewable sources clear. In January, he announced an investment of approximately $75 billion for developing infrastructure in the clean-energy industry.
Edited by: Mahi Gupta
Published by: Vishakha Verma
