(Bloomberg) -- India's ReNew Power Pvt Ltd. is looking for opportunities to set up green hydrogen hubs locally and overseas as companies and governments seek greener alternatives to fossil fuels.
“Green hydrogen is going to be a more global business, a tradable business, so we are looking at opportunities for setting up green hydrogen hubs both in India as well as overseas,” Chairman Sumant Sinha said in an interview with Bloomberg Television. “We are in fairly good conversations with a number of potential off-takers or customers for buying the green hydrogen.”
ReNew is among several Indian companies tapping prospects in green hydrogen, made by breaking down water using electricity from renewable sources, which is considered crucial to decarbonize hard-to-abate heavy industries. Conglomerates run by India's two richest men -- Gautam Adani and Mukesh Ambani -- along with state energy giants have committed large investments in the green hydrogen value chain, responding to Prime Minister Narendra Modi's ambition to make the country a global powerhouse in this area.
Technologies are still at the “very early stages of conceptualizing” and consumers need to realize the potential for the sector, Sinha said. But significant investment decisions amounting to billions of dollars are likely to come in within the next one to two years, he said.
In July, the company signed a preliminary agreement with the Egyptian government to invest as much as $8 billion to produce green hydrogen in the African country. ReNew is also working with Larsen & Toubro Ltd. to develop and operate green hydrogen projects in India mainly for refineries, fertilizer and steel plants.
The Indian government has very aggressive targets to add renewable energy and ReNew is looking at capitalizing on that with a goal of 40-50 gigawatts of capacity in about nine years, Sinha said.
--With assistance from , and .
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