Reliance Explores Green Hydrogen Ventures – Issue #65
Last week, Reliance unveiled its comprehensive strategy for entering the green hydrogen landscape. Meanwhile, Coal India pivots towards a new identity and India underscores its nuclear ambition.
News of the week
Last week delivered a rare update on Reliance’s green hydrogen plans.
The group’s alliances with startups like Stiesdal – which wants to produce low-cost electrolysers – have already been reported. It’s also known that the group has secured large tracts of land in Gujarat for its green hydrogen project. Now comes the news: Reliance is also trying to create demand for green hydrogen.
"The company is targeting production of green hydrogen by 2025, and when that happens, it needs a ready infrastructure for offtake,” an industry official told Economic Times. Accordingly, Reliance is working with industry peers like Ashok Leyland to produce a hydrogen internal combustion engine for trucks. These engines, said the paper, can use hydrogen or a mix of hydrogen and diesel without needing large modifications to the powertrain. “This adaptability allows for easier conversion of vehicles to hydrogen-powered ones,” it wrote.
Reliance is also working with a subsidiary of Megha Engineering and Infrastructure to develop a hydrogen bus. And with Bharat Benz to develop an intercity luxury concept coach powered by hydrogen fuel cells. Also, see this MoneyControl report about its plans.
These are interesting developments. There has been some chatter about retrofitting ICE vehicles into EVs. It’s interesting to see Reliance move down that path as well. Megha’s EV plans look intriguing as well. Despite its roots in infrastructure, the group is diversifying aggressively into the new energy economy. Not only is it developing hydrogen buses with Reliance, but it is also BYD’s partner in India.
While on Reliance, there is another intriguing development. “India's renewable energy agency, Solar Energy Corp, has offered oil-to-telecoms conglomerate Reliance Industries... a 51% stake in a joint venture to supply renewable power to the latter's refineries and manufacturing plants,” reported Reuters.
Other news. There have been sporadic updates about India’s new nuclear push for some time now. The country wants to treble the country’s nuclear power capacity from 7,840 MW to 22,480 MW by 2031. One part of this expansion has to come from state-owned enterprises like NPCIL and NTPC. Another part, however, has to come from small and modular reactors (SMRs).
Here, while there has been much talk about NTPC – which is now entering nuclear – possibly setting up SMRs at defunct coal plants, the Indian government threw a curveball last week. It is wondering if private companies should be allowed to set up SMRs.
Other news. The government continues to mull how to reposition Coal India. Two years ago, when CarbonCopy looked at the state-owned coal miner’s plans in an age of decarbonisation, we were told that CIL would enter energy-intensive manufacturing activities – like the manufacturing of polysilicon. Now, reports Business Standard’s Shreya Jai, the government is also considering taking the firm into critical mineral mining, coal gasification, carbon capture, green hydrogen, and renewable energy. The rebranding will follow. “To secure its future, it’s crucial for the brand identity to encompass more than just coal,” a senior official told BS.
Coal block auctions continue. The number of auctioned coal blocks now stands at 92.
India is reviewing the imports-substituting PLI programme. This review, however, took place in a week when the government received further reminders that decoupling from other countries isn’t easy. The Tata Group, for instance, has tied up with Chinese firm AESC its UK battery unit.
And then, there is Adani. Last week, the group made its first acquisition since Hindenburg. It picked up Sanghi Cements at an enterprise valuation of ₹5,000 crore. The group is now trying to greenwash itself. While on Adani, also read this interview with GQG Partners’ Rajiv Jain, the only big investor putting money into Adani right now. And see this Bloomberg report on how Adani’s grip over India’s economy is helping the group rebound.
Elsewhere in the world, Ukraine has begun hitting Russia’s energy shipments. Global food prices are rising after Russia reneged on a promise to protect ships carrying Ukraine’s agricultural products – and India restricted rice exports.
Atypical climate continued to roil the world. The week passed saw massive flooding in China (some of the videos are apocalyptic), heatwaves in Slovenia, loads of missing ice in Antarctica, and a winter heat wave in Latin America. Closer home, the Narmada went into spate even as, down south, dam reservoirs stayed empty. Alarm bells are ringing in Kerala as the first half of the monsoon left the state with a massive 38% deficit in seasonal rainfall.
Also came reminders that older disasters continue. Houses in Uttarakhand continue to develop cracks. Heavy rains and landslides continued as well, although the IMD has warned that August is likely to be drier than normal with the monsoon entering a 'weak phase' and the effects of the emerging el Nino begin to be felt in the subcontinent. Our cities continue to remain precarious in the face of climate disruptions. In all this, however, there is little evidence that we are close to learning any lessons. In the clip below, India’s minister for roads and highways says the government will build thicker embankments along hill roads.
Hear this clip. And then read this TOI report on the untrammelled power of the Beas during the rains. And read this report on Kedarnath ten years after that devastating cloudburst.
Ecocide continues. Last week a clutch of laws were passed in the Indian Parliament, including crucial amendments to the Forest Conservation Act, the Biological Diversity Act and the Mines and Minerals (Development and Regulation) Act, 2023. All three pieces of legislation have been flagged as exclusionary, detrimental to forest conservation and inimical to the development of adaptive capacity to climate impacts. Reports suggest that now the country wants to ease environmental laws for seafood exporters.
The latest round of G20 talks on environment and climate sustainability have ended inconclusively.
Last week, it emerged that the United Arab Emirates’ state oil company is reading emails to and from the Cop28 climate summit office and is even consulted on how to respond to media queries. This is not surprising. The president of Cop28, Sultan Al Jaber, is also chief executive of the Abu Dhabi National Oil Company. UAE also made headlines for other reasons. It is taking over 10% of Liberia’s land for carbon credit production.
And then, there is news from the UK. Prime Minister Rishi Sunak has announced new oil and gas licenses. The US too is pushing gas production as it tries to weaken Russia.
All the while, costs continue to mount. India’s decision to curb rice exports, due to heavy rains, is likely to add to global hunger. Or take Pakistan. “Researchers from Islamic Relief who talked to people in the flood-affected areas found 40% of the children they surveyed had stunted growth and 25% were underweight as families struggle to access food and healthcare,” wrote the Guardian. “About 80% of mothers reported sickness among children, with outbreaks of diarrhoea, malaria and dengue fever increasing.”
In happier news, Amazon deforestation is down 60%. But, yes, it continues to shrink.
Climate video of the week
Do hear this conversation between reporters Rishika Pardikar and Priyanka Pulla on how the government is steamrolling bad laws into reality.
Climate reads of the week
‘Dangerous pivot’ on overseas oil and gas deals splits Biden administration(Politico)
Flawed Conservation Act: How India's revised forest conservation law affects the custody of India's carbon sinks (CarbonCopy)
Global Boiling (Phenomenal World)
The silent trade of elusive small cats in Mizoram (Mongabay)
India’s Chip Policy: An Intelligent Roadmap or a Game of Darts? (India Forum)
What will an El Niño bring next to India? (India Forum)
It’s Hurricane Showdown Season in the Atlantic: A hot and bothered Atlantic Ocean is butting up against a burgeoning El Niño in the Pacific. If the conditions are right, could El Niño stop hurricanes before they form? (Hakai)