Hero Future Energies and the unbearable lightness of green hydrogen

Hero Future Energies has been dabbling in solar and wind energy since 2012 but hasn’t seen much traction. In an indication of which way India’s renewables wind is blowing, it’s now quietly adding another segment to its lineup—green hydrogen

Hero Future Energies recently signed a 1 GW green hydrogen production deal with electrolyser manufacturing startup Ohmium

Producing green hydrogen requires renewable energy and an electrolyser that splits water into hydrogen and oxygen, but it’s also expensive and energy intensive

India’s hydrogen policy is trying to make things easier, luring in the big guns like Reliance, IndianOil, and Adani Group into segment

While demand grows, their entry might shrink what space startups like HFE, the Adar Poonawalla-backed H2e Power, and others have carved for themselves

With a chequered history of success and a name that consumers best associate with two-wheelers, many would struggle to place Hero Future Energies Pvt Ltd (HFE). Despite being in the renewables business since 2012, HFE, which has dabbled in both wind and solar energy, hasn’t had much success with either segment. For the last three years, the company has been loss-making.

Now, HFE is hurrying to the front of the queue in another fast-growing renewables segment—green hydrogen. In January 2021, HFE appointed Srivatsan Iyer, who has considerable experience in the petrochem and oil and gas sectors, as a new CEO in an effort to turn around its fortunes. And three months ago, the company signed signed PR Newswire Hero Future Energies and Ohmium International announce Strategic Partnership for 1000 MW of Green Hydrogen Read more a 1 gigawatt (GW) green hydrogen production deal with US-based electrolyser electrolyser electrolyser The electrolyser is an apparatus that produces hydrogen through a chemical process (electrolysis) capable of separating the hydrogen and oxygen molecules of which water is composed using electricity. manufacturing startup Ohmium International.

Green hydrogen is the cleanest of all hydrogen fuels, made by splitting water into hydrogen and oxygen through a process called electrolysis. But it is also the most expensive and energy intensive to make. “It takes about 4GW of solar power to work 1GW of electrolysers,” says Anuraag Nallapaneni, a senior program associate for hydrogen at sustainability-focussed research organisation WRI India.

Colour Coding

Green Hydrogen Produced from a zero-emission energy source
Blue Hydrogen Produced from natural gas, with the CO ₂ emissions captured or sequestered
Grey hydrogen Produced from natural gas

Under the deal, HFE, with its years of experience in solar power, will provide the electricity needed to power Ohmium’s 500MW electrolyser-manufacturing plant in the south Indian city of Bengaluru.

HFE and Ohmium’s sprint to the altar is indicative of India’s larger ambitions with green hydrogen. The country is one of the largest consumers of hydrogen in the world, accounting for almost 10% of the total global hydrogen demand. And having missed the bus on solar manufacturing—it still imports 90% of solar cells from China—policy announcements are coming thick and fast.

In February, the government unveiled unveiled Ministry of Power Notification Read more a Green Hydrogen Policy. It’s aimed at boosting the domestic production of green hydrogen to 5 million metric tonnes per annum (MTPA) by 2030 and making India an export hub for the energy source.

AUTHOR

Shruti Sonal

Shruti is a Delhi-based reporter who looks at India's clean energy ecosystem through the lens of the intersection between businesses, policy and environment. She has previously worked with Reuters and Outlook Business.

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