Reliance Industries to repurpose facility for making blue hydrogen
Reliance Industries Ltd. (RIL) has reportedly planned to remodel a USD 3.97 billion (Rs 30,000 crore) convertor plant of petroleum coke to synthetic gas for producing blue hydrogen for USD 1.2-1.5 per kg.
With this move, billionaire Mukesh Ambani’s conglomerate intends to become one of the world’s largest producers of blue hydrogen, making zero-emission fuel at half the cost of the global average.
Reliance aims to achieve net-zero carbon emission for its business by 2035. However, the cost of green hydrogen is too high. Therefore in the interim period, the company will rely on blue hydrogen till the cost of green hydrogen drops and could become the first mover to set a hydrogen ecosystem.
RIL cited that Syngas has the ability to make hydrogen at a reasonable cost of USD 1.2-1.5 per kg. As per the July 2020 Hydrogen strategy of the European Commission, green hydrogen made using renewable resources costs around USD 3-6.55 per kg. The Commission also noted that the cost of blue hydrogen is expected to be around USD 2.40-3 per kg.
Previously, Ambani asserted that by the end of this decade, the group intends to produce green hydrogen at USD 1 per kg. A month ago, he declared plans to invest nearly USD 75 billion in establishing infrastructure for renewables.
RIL’s framework for carbon footprint reduction includes shifting to renewables from fossil energy, optimizing sustainable chemicals and materials as part of the group’s portfolio along with carbon capture, fixation, and utilization.
At the group’s Jamnagar-based oil refining complex, the low-value fuel streams, or off-gases are extracted from the fuel pool and utilized as feedstock to convert to top-value petrochemicals. This Syngas venture will now be shifted to a wholly-owned subsidiary with an aim to unlock its value.
Eventually, Jamnagar will transition to renewables with a BESS (battery energy storage system) to cater to its steam and electricity demand.
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Pankaj Singh
Pankaj Singh Develops content for Algosonline, Market Size Forecasters, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With experience in technical and niche w...