One of India’s leading solar power generation companies — Acme Solar Holdings — has announced plans to enter the green hydrogen business.
According to a company press release, Acme will partner with French Lhyfe Labs for the production of green hydrogen.
“Both the companies will work together on business opportunities to achieve the lowest cost of energy by collaborating competencies and technical know-how of design, produce, engineer, construct, commission and invest in green hydrogen production facility through renewable energy,” said Acme without giving any more operational details about its plans.
The announcement comes just days after the Indian finance minister mentioned the government’s plan to launch a national hydrogen energy mission. Media reports suggest that the government will mandate fertiliser, steel, and petrochemical companies to use green hydrogen.
Hydrogen is produced by chemically splitting water molecules. The energy required for this splitting may be supplied through fossil fuels or renewable energy sources. Green hydrogen is the term used when renewable energy sources are used for this splitting.
In its India Energy Outlook report 2021, the International Energy Agency notes that India has huge potential to make hydrogen as cheap as natural gas due to its high dependence on imports and low-cost solar power, which has fallen to a record low of Rs 1.99 (2.84¢) per kilowatt-hour.
Hydrogen can also play an important role in energy storage. Surplus renewable energy during off-peak demand periods can be used to produce hydrogen and store it for later use.
According to a report by GlobalData, surplus renewable power can be converted to hydrogen and stored for very long periods. At present, only 0.2 per cent of global electricity is generated from hydrogen.
Related story and podcast: Green Hydrogen — Where Is It Useful? Where Is It Not?
Featured image courtesy of Acme Solar.