Thermax's role to be broad-based or specific depending upon how Green Hydrogen sector grows in India, CEO & MD Ashish Bhandari says

Thermax Limited’s role in the green hydrogen sector in India could be broad-based or specific and will be determined as this sector grows, Chief Executive Officer (CEO) and Managing Director (MD) Ashish Bhandari tells Zee Business in an exclusive interview. 

He said that the possibilties of a partnership or investment are open before the company and any decision will be known in due course.

While the Government's Green Hydrogen Policy is now in place, only one policy decision has been made while two decisions are yet to come, Bhandari said.

Bhandari said that the policy is the outcome of the growing concern of climate change. And to counter climate change, the dependency on fossil fuels needs to change. While electricity can replace fossil fuels in some areas, there are still some areas left where electricity may not work. In such cases, hydrogen plays a crucial role. 

He said that green hydrogen (Hydrogen that is produced by Green sources) was currently 4-6 times more expensive than grey hydrogen (Hydrogen that is produced from fossil fuel) without the intervention by the government.

To lower the cost of green hydrogen, it is imperative to look into the supply structure and also to ponder upon how to lower the electricity costs, the CEO explained.

He said that the launch of the green hydrogen policy puts in place a sturdy foundation for developing a competitive green hydrogen sector in India — a transition well underway in most developed countries.

In this policy, the government had decreased the electricity cost, which will help in decreasing interstate and banking charges, thereby reducing the cost of green hydrogen production, he added.

However, the government hasn’t given any clarity on whether it will bear the charges or the onus will lie upon the state government, Ashish claimed.

As per him, the three major sectors where green hydrogen can replace grey hydrogen are refining, petrochemical, fertilizers - In converting ammonia into urea., 

The other major sectors in which green hydrogen can replace grey hydrogen include steel, cement and mobility

The government plans to achieve a production target of 5 million tn by 2030 target and has instructed to gradually increase the use of green hydrogen instead of grey hydrogen by 10- 15 per cent.

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2030 तक 50 लाख टन ग्रीन हाइड्रोजन उत्पादन का लक्ष्य, सरकार कंपनियों को फ्री एक्सेस देगी, ग्रीन हाइड्रोजन का मौजूदा भाव 4-6 गुना ज्यादा : आशीष भंडारी, MD & CEO, #Thermax

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@Thermaxglobal | @ge_ashish @deepdbhandari pic.twitter.com/vUSgz9Cjvy

— Zee Business (@ZeeBusiness) February 23, 2022