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- We have signed an agreement with the Government of Tamil Nadu to set up green hydrogen and green ammonia project in the State.
- Globally, technologies are evolving to make the production of green hydrogen cost-effective.
- Solar capacity including utility-scale, rooftop scale, and open access are witnessing significant growth year on year.
What have been the key business developments in the company this year?
The past year has been exciting with new developments. We are progressing on our large-scale green hydrogen and ammonia project in Oman. We have partnered with Norway-based Scatec ASA to invest in its Oman Project with a 50-50 joint venture, to design, develop, build, and operate the large-scale green ammonia facility. A usufruct agreement has been signed with Oman. ACME and Scatec have also signed a term sheet for offtake from the first phase of green ammonia from Oman. In India, we have signed an agreement with the Government of Tamil Nadu to set up green hydrogen and green ammonia project in the State. An MOU is also signed with Karnataka to set up the green hydrogen & green ammonia project.
How do you see India currently positioned to achieve its 2030 RE target?
India’s installed generation solar capacity is currently at 57,706 MW, which is around 14.3% of the total installed capacity. India has aimed for 500 GW of renewable energy capacity by 2030, which is doable by a combination of all-natural resources. For example, if we consider the requirement for green hydrogen plants in the next few years – we would require another 100 GW for setting up these projects. There has been a tremendous response from developers in the recent bidding.
A lot has been happening on the Green Hydrogen and Green Ammonia front at ACME. Tell us what more is in store.
By 2030, we are targeting to have a portfolio of 10 million metric tons/year of green ammonia which will be a combination of projects which are commissioned or in the pipeline. We are working towards the same and have set up dedicated teams for these projects. As mentioned earlier, we are working towards setting up projects both in India and overseas. All major economies in the world have put up their strategies around green hydrogen. Green hydrogen, produced from renewable sources, plays a crucial role in low-carbon development. It’s derivative – green ammonia – can substitute fossil fuels used in industries including fertilizers, chemicals, petrochemicals, refineries, and steel units. In India, a chunk of hydrogen is utilized in the refining and production of ammonia, which is a base material for urea and other complex fertilizers. Kickstarting a small share of green hydrogen to substitute grey hydrogen can create a substantial market. Gradually, with the economies of scale and innovation green hydrogen could become a competitive fuel. Globally, technologies are evolving to make the production of green hydrogen cost-effective. The US Climate and Energy Investment Bill has now been passed and it will give huge subsidies to various programs. Some call it a game-changing development in transition. The US is potentially one of the largest markets for green hydrogen or ammonia.
What is your view on the government’s efforts on focussing on domestic solar manufacturing and ramping it up?
Our Prime Minister during his speech last Independence Day clearly mentioned that we have to become self-reliant in the energy sector. We should be self-reliant in the fields of solar energy, wind energy, and various other renewable energy sources like mission hydrogen, biofuel, and electric vehicles. There is a clear roadmap being laid out to become AatmaNirbhar Bharat. There are a few challenges to securing the entire value chain for manufacturing here. However, with consistent efforts and planning, we can gradually move towards Make-in-India.
What is your outlook for the solar industry in the next 5 years?
Solar capacity including utility-scale, rooftop scale, and open access are witnessing significant growth year on year. Driven by stronger support from Government policies and industries moving to cleaner fuels, the growth to add new capacities will continue. Solar PV will contribute a chunk to the overall renewable energy targets by 2030. The high commodity and energy prices are short-term hiccups but in the long-term renewable energy will be competitive to conventional resources.