Reliance Industries Ltd., owned by Asia’s richest man Mukesh Ambani has aimed to be among the largest blue hydrogen producers at ‘competitive cost’ in its green energy transition plan.
The company located in Mumbai will re-purpose a $4- billion plant that currently converts petroleum coke into syngas to produce blue hydrogen for $1.2- $1.5 a kilogram, as shown in a presentation. Blue hydrogen is made using fossil fuels that capture the carbon dioxide formed during its production but Reliance sees the conversion as a temporary measure until the cost of green hydrogen produced from the electrolysis of water becomes competitive.
The company added that “in the interim, till the cost of green hydrogen comes down, RIL can be the first mover to establish a hydrogen ecosystem, with minimal incremental investment, in India. “Subsequently as hydrogen from syngas is replaced by green hydrogen, the entire syngas will be converted to chemicals.”