WEF: Green hydrogen to lead towards zero carbon future, says Gautam Adani

Writing in a blog post on the World Economic Forum site, Adani said for India, the equitable solution is not to replace one fossil fuel with another but to leapfrog to renewables and green hydrogen

Green hydrogen, an alternative to fossil fuel, will help the world move towards a zero-carbon future and achieve energy security for countries like India, said Gautam Adani, chairman of Adani Group.

Writing in a blog post on the World Economic Forum site, Adani stated that 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. 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," Adani wrote in the blog titled “Reducing costs: The key to leveraging green hydrogen on the road to net zero”.

Group firm Adani New Industries is investing $50 billion in green hydrogen projects over the next ten years. The first project of one million metric tonnes per annum (MMTPA) of green hydrogen is being implemented in phases in Gujarat, and the first phase is expected to start production by financial year 2027.

"Green hydrogen is a clean fuel, a scalable energy storage solution and a zero-emission industrial feedstock. For green hydrogen to fulfil these roles, the cost of production must decline similarly to renewables. That can only happen if the renewable cost of production falls faster than that of green hydrogen, given that 60 to 70 per cent of green hydrogen's cost is from electricity.

For India, green hydrogen presents a home-grown opportunity as it holds the promise, along with renewables, to lift the yoke of expensive energy imports from its economy – more than $230 billion per year for crude imports," he said.

Adani noted that green hydrogen will hold the key to realising the dream of carbon neutrality across the world. Hydrogen has been known as a potential energy storage medium and can produce electricity in fuel cells with water as the only waste product. Hence, to fully realise its potential, Adani highlighted the importance of its broader adoption to decrease the cost of production.

Companies with backward integration are the only ones who will be able to provide the world with affordable green molecules. The cost of production of green hydrogen must decline from the current $3 to $5 per kilogram (kg) towards $1 per kg for widespread adoption, he said.