Call for lower prices of green hydrogen

2nd February 2024 By: Bloomberg

Call for lower prices of green hydrogen

Gautam Adani

Billionaire ports-to-coal tycoon Gautam Adani has called for a renewed global focus on lowering green hydrogen prices to spur the clean fuel’s adoption in emissions-intensive industries.

Lowering costs from between $3/kg and $5/kg to $1/kg would make the energy source a viable tool for decarbonisation across many sectors, Adani wrote in a World Economic Forum blog post dated January 16.

Adani New Industries plans to begin production of the clean fuel from 2027 in India’s Gujarat state and could invest as much as $50-billion over ten years, according to the company. “The most significant near-term reductions will come from large-scale, vertically integrated projects encompassing the entire supply chain,” Adani said in the blog post.

An early focus for a clean hydrogen sector will likely be on production of derivatives like green ammonia and methanol, because of current challenges facing the transportation of the fuel, Adani wrote.