Adani New Industries Fuels Ambitious $2.5 Billion Investment in Green Hydrogen Project

Adani New Industries Ltd (ANIL), a wholly-owned subsidiary of Adani Enterprises, is making substantial strides in its green h2 initiative with a reported investment of $2.5 billion. The project aims to establish an integrated value chain, with the first phase targeting an annual capacity of 1 million tons, anticipated to be operational by FY27.

ANIL’s visionary plan entails scaling up this capacity to 3 million tons over the next decade, with a projected investment of $50 billion, contingent on market conditions and the success of the initial phase. The strategic location for this green hydrogen plant is set at Mundra in Gujarat, India.

The core strategy for ANIL involves comprehensive backward integration, creating an integrated value chain spanning solar, wind, electrolysers, and associated equipment essential for green hydrogen generation. This underscores Adani Group’s deep commitment to green hydrogen, reflected in substantial investments across the supply chain, including solar polysilicon, ingots, wafers, cells, modules, and wind turbine generators. The downstream product portfolio encompasses green ammonia, green methanol, and sustainable aviation fuels.

As part of the electronic manufacturing cluster at Mundra, ANIL is undertaking the backward integration of the solar value chain, ranging from polysilicon to modules. Joint ventures have been established for the production of ethylene vinyl acetate, back sheets, aluminum frames, and glass. ANIL has also made strides in developing a 5.2 MW wind turbine generator.

In a September announcement, Adani Enterprises showcased its commitment to green energy by forming an equal joint venture with Kowa Holdings Asia Pte. This partnership aims to market green ammonia, green hydrogen, and their derivatives in key markets such as Japan, Taiwan, and Hawaii.

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To finance these ambitious ventures, ANIL is exploring diverse avenues, including domestic bond markets, bank loans, and other lines of credit. The recent revelation by the group’s CFO, Jugeshinder Singh, about a planned $84 billion investment in infrastructure projects over the next decade indicates a strategic shift toward approaching domestic bond markets, departing from the group’s historical focus on US bond issuances.

In summary, Adani New Industries Ltd’s substantial investment in its green hydrogen project signifies a major leap toward sustainable energy solutions. With an integrated value chain and a commitment to substantial future investments, Adani is positioning itself as a significant player in the global green hydrogen market. This initiative is poised to influence India’s renewable energy sector and catalyze a broader shift toward a sustainable hydrogen economy.

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