Adani Group, a prominent conglomerate in India, remains steadfast in its commitment to establishing a renewable hydrogen plant with an annual capacity of three million metric tons in Gujarat.
“Adani Group still has plans to build a three million mt/year renewable hydrogen plant in Gujarat despite TotalEnergies putting its partnership on hold,” revealed CFO Robbie Singh during a recent call with analysts. The transcript of the call, published on August 11, underscores the group’s determination to forge ahead.
“The capex plans do not alter for an asset like green hydrogen,” Singh affirmed, reassuring stakeholders that the project’s financial commitments remain intact. He reiterated that the envisioned plant, boasting a production capacity of three million mt, would maintain its trajectory at an approximate cost of $50 billion, in line with the previously outlined projections.
Despite TotalEnergies’ decision to pause its acquisition of a 25% stake in Adani New Industries, Singh emphasized that the strategic plans for the renewable hydrogen plant remain unaffected. He highlighted that the project’s momentum would persist, and anticipates that project investments of $300 million-$400 million for this year would experience significant escalations in 2024 and 2025.
Singh elaborated on the strategic significance of the renewable hydrogen capacity planned for Gujarat, positioned as a key component within a comprehensive hub featuring integrated upstream and downstream operations. This holistic approach was detailed in a presentation during the group’s annual general meeting on July 18. Notably, the renewable hydrogen produced would serve the unique needs of the special economic zone in Mundra, catering primarily to ammonia and urea applications. Efficient transport is envisaged through a dedicated pipeline infrastructure.
Singh provided insights into the group’s continued integration of various energy-related initiatives. Advancements in silicon ingot and solar wafer manufacturing are well underway, and a wind technology facility is transitioning into the commercial production phase.
In addressing plans for an integrated electrolyzer manufacturing facility, Singh outlined the completion of all requisite agreements pertaining to associated technologies. The development and construction phase of this facility is anticipated to commence by the end of the current quarter or early in the third quarter.
While the memorandum of understanding with TotalEnergies remains active, subject to due diligence, Singh emphasized that the renewable hydrogen project’s progress isn’t contingent on the equity partnership. The Adani Group’s commitment to the project is resolute, persisting independently of external equity dynamics.