Green hydrogen, which is created in an electrolyser by splitting water with clean electricity, is thought to be a major factor in achieving emission reduction goals
As part of billionaire Mukesh Ambani's shift towards green energy, Reliance Industries Ltd. has inked a deal with Norway's Nel ASA for the sourcing of technology to create electrolysers for the production of green hydrogen.
"It gives Reliance an exclusive licence for Nel's alkaline electrolysers in India and also allows Reliance to manufacture Nel's alkaline electrolysers for captive purposes globally," the Norwegian company said in a statement, referring to the agreement with Nel Hydrogen Electrolyser AS, a fully owned subsidiary of Oslo-based Nel ASA.
The richest man in Asia, Ambani, made his fortune in the fossil fuel industry and declared in 2022 that he would invest USD 75 billion in renewable energy infrastructure, which would include solar panels, electrolysers, and generating plants.
Green hydrogen, which is created in an electrolyser by splitting water with clean electricity, is thought to be a major factor in achieving emission reduction goals.
Reliance is starting a green energy company to supply India with the tools needed for its green energy revolution. Ahead of all other energy companies in the region, Reliance has committed to achieving net zero carbon emissions by 2035.
The oil-to-telecom giant Reliance, which wants to achieve net zero emissions by 2035, intends to generate 100 gigawatts of renewable energy by the end of the decade, which is one-fifth of the country's target for non-fossil capacity.
A goal of 500GW installed renewable energy by 2030 has been set by the Indian government. With 280GW, solar is anticipated to make up the biggest portion of this.
The signing of this agreement marks a critical juncture in Nel's history. Being a global producer of renewable hydrogen, Reliance is an impressive company with big goals, and I am glad they chose Nel as their technology partner. Håkon Volldal, President and CEO of Nel, states that "through this agreement, Nel will get a revenue stream from a rapidly growing market Nel could not have access to on its own, in addition to helping Reliance achieve their global aspirations."
Reliance, the largest private sector company in India and a Fortune 500 company, "is renowned for its capacity to execute large-scale projects and robust investments in technology and innovation," according to the statement.
In line with the goal established by chairman and managing director Mukesh Ambani, Reliance is developing a multi-GW fully integrated end-to-end new energy value chain, from photon to green molecules, paving the way for widespread and reasonably priced access to sustainable energy for all. A key component of the new energy value chain is green hydrogen, and Reliance and Nel's collaboration on alkaline electrolysers is a significant step in the direction of sustainable energy.
Reliance gains access to Nel's industry-leading and time-tested technology platform for producing electrolysers through the agreement. Reliance has developed a number of businesses that are genuinely global in scope. Nel's strong technological platform and its execution expertise together will further contribute to the success story of both parties.
The statement read, "To increase the competitiveness of the alkaline technology platform, both partners will also collaborate on future performance improvements and cost optimisation through research and development (R&D), value engineering, standardisation, and modularisation."
Nel may purchase equipment from Reliance for its own projects, per the terms of the agreement. Nel will keep providing technology platforms outside of the agreement to the Indian market.