Reliance Industries Ltd rides PLI schemes to close in on $1-1.5/kg Green H2 target
Reliance Industries Ltd (RIL) is getting closer to its target of producing green hydrogen for $1-1.5 per kilogramme on the back of multiple product-linked incentives (PLIs) it has won in the green energy segment, an analyst report said.
«These incentives are likely to assist RIL achieve GH2 (green hydrogen) cost of $1-1.5/kg,» Nuvama Research said in a report dated January 20.
The cost of GH2 is around $3/kg at present.
The country's largest private sector company has secured sops under both rounds of solar modules PLIs — $300 million for 4 gigawatt (GW) in round one and $400 million for 6 GW in round two.
The company also won PLI under advanced chemistry cell (ACC) battery storage for 5 GW capacity.
Recently, RIL won incentives of $0.23/kg for green hydrogen (GH2) capacity of 90,000 metric tonnes per year and $0.3/kg for an electrolyser capacity of 300 megawatt. This sums up to an incentive of $0.5/kg, subsidising 13% of current G H2 manufacturing cost, Nuvama said in its report.
At the International Climate Summit in 2021, RIL chairman and managing director Mukesh Ambani had outlined his company's vision to bring down the cost of hydrogen to less than $1 for one kg in 10 years — the '1-1-1 target' for GH2.
Last week, Ambani said the company's 'new energy giga complex' in Jamnagar is all set to be commissioned in the second half of calendar 2024. «I am confident that Reliance's new energy business will play a pivotal role in the global movement for adoption of cleaner fuels,» he said.
ET had on August 22 reported that RIL will commission 5 GW of its 20 GW solar modules capacity next year.
