InvestorQ : Can you tell me about the green hydrogen project proposed by the ACME group?
Lavanya Subramanian made post

Can you tell me about the green hydrogen project proposed by the ACME group?

Anamika Sodhani answered.
1 month ago

Acme Group has announced that it would be developing a green hydrogen and ammonia project in the state of Tamil Nadu entailing an investment of Rs52,474 crore. This project will include a 5 GW solar power plant, a 1.5 GW electrolyzer and 1.1 million tonne of ammonia production capacity. In dollar terms, this entire project will entail a total investment of $6 billion and thereabouts.

This is expected to be one of the largest such plants in India and also the largest in the world at the current juncture. Many of the large groups like Reliance and Adani group are also having aggressive plans to expand their green hydrogen franchise. The ACME plant will produce green hydrogen and ammonia, with the latter helping to de-carbonise fertilizers, power, refining and steel. The four pre-requisites for green hydrogen plant are solar radiation, access to port, availability of land and skilled resources and TN offers all three.

How exactly is green hydrogen produced? It is done by splitting water into hydrogen and oxygen using electrolysers. In the case of green energy, the electrolysis itself is powered by energy from renewable resources such as wind and solar. India has set a target of 5 million tonne green hydrogen by 2030 which will give a big boost to energy security. Currently, India imports 85% of its oil and 53% of gas requirements and that equation can change drastically if the dependence on green hydrogen can be enhanced.

The broad strategy of the Indian government is also to currently encourage the export of green hydrogen to Japan, South Korea, and Europe. The government has allowed some unique benefits like concessional green electricity, waiver of inter-state transmission charges, land at renewable energy parks and mega manufacturing zones to promote green hydrogen and green ammonia etc. The government also plans to extend the PLI scheme for the manufacture of electrolyzers.