RIL’s green hydrogen foray is part of its Net Carbon Zero target by 2035. Falling renewable cost and scale economics will lower green hydrogen cost. Given the capex intensity, RIL’s strong balance sheet and backward integration puts it in the driver’s seat in the US$ 74 billion opportunity, foreign brokerage, Jefferies said in a report.
RIL’s hydrogen business is worth $ 8 billion (Rs 100/share) at a 20 per cent discount to European benchmark.
Backward integration into solar PV and energy storage system, access to cheap land, GW scale renewable generation facilities will lower its renewable power cost making its hydrogen production cost competitive. With annual capacity of 1 mmt green hydrogen requiring $ 25 billion in capex, RIL’s adequately funded balance sheet is a key competitive advantage, the report said.
