GAIL launches into hydrogen production to develop its renewable energy portfolio

As part of an effort to adopt cleaner forms of energy, GAIL will lay pipeline infrastructure to connect consumption centers to gas sources while increasing its renewable energy portfolio, said president and CEO by GAIL, Manoj Jain.

“The global energy sector is experiencing a paradigm shift in recent years as the world moves towards a sustainable energy future,” he said in the company’s latest annual report.

To achieve a cleaner primary energy mix for India, the government is emphasizing the expansion of the natural gas sector in order to achieve a gas-based economy as well as the growth of renewable energy. GAIL, as a leader in integrated energy, has aligned with this vision, he said.

The company is laying about 6,000 kilometers of pipeline, including a west coast to east coast pipeline from Mumbai to Jharsuduga to Odisha via Nagpur, he said. It currently has around 13,700 km of gas pipeline network.

GAIL “will invest selectively in the area of ​​renewable energies given the potential for future growth,” he said. The company “sought opportunities to increase the renewable energy portfolio from the current 130 MW through tenders and other inorganic channels such as mergers and acquisitions.”

“In addition, the company is also embarking on the production of ethanol and hydrogen,” he said without giving details.

Hydrogen is a clean fuel which when consumed in a fuel cell only produces water. Many countries are embarking on the production of hydrogen from a variety of domestic resources, such as natural gas, nuclear power, biomass, and renewables like solar and wind power.

In India, companies ranging from Reliance Industries to Indian Oil Corporation and NTPC have announced ambitious plans to produce hydrogen. GAIL also joins this list now.

GAIL, Jain said, has the largest and most diverse LNG portfolio in India capable of delivering both stable prices and reliable supply to consumers.

The company “will have to push for higher gas usage in the industrial segment, the transport segment using CNG and LNG, trigeneration, cold storage, etc. (LNG for long-haul transport).

He said GAIL was also looking to expand its presence in petrochemicals and diversify into high-margin downstream businesses.

“The focus is on the production capacity of polypropylene (PP) through the establishment of two polypropylene units (polypropylene propane dehydrogenation plant – PDHPP in Usar, Maharashtra and PP plant in Pata, Uttar Pradesh ) and assessing opportunities in some specialty chemicals in India, ”he said. noted.

GAIL currently has a production capacity of 1.6 million tonnes per year of polyethylene and PP. It is also setting up at least two compressed biogas plants and an ethanol plant.

India, which imports 85 percent of its crude oil needs, is stepping up efforts to explore new forms of energy to clean up the skies and reduce its dependence on imported fuels.

“We have 120 MW of renewable energy capacity that we want to increase to 1 GW in the next 3-4 years,” Jain told PTI last month.

GAIL will bid for 400 MW solar power capacity auctioned by SECI (formerly Solar Energy Corporation of India) in Rewa, Madhya Pradesh.

In 2019, the company won a call for tenders for operational 874 MW wind power projects from IL & FS for ??4,800 crores. But IL & FS’s other partners used the right of first refusal to block GAIL’s offer, he said.

GAIL has partnered with state-owned gear maker BHEL for its foray into renewable energy. The merger aims to take advantage of the competitive strengths of the two companies. GAIL will be the project developer and BHEL will be the project manager and the EPC (engineering, procurement and construction) contractor.

The decision by GAIL, which holds 75 percent of the market share in gas transportation and over 50 percent in gas trading in India, is seen as part of the government’s vision to prepare for the energy transition process. , under which the share of gas in the energy mix should be increased to 15% by 2030, against 6.2% currently.

This story was posted from a feed with no text editing. Only the title has been changed.

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