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HomeSTOCKS1 Lakh Crore Investment; Ambani's Reliance Is Going To Play A Big...

1 Lakh Crore Investment; Ambani’s Reliance Is Going To Play A Big Role In This

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Mukesh Ambani’s Reliance Industries Ltd (RIL) and Larsen & Toubro (L&T) together with energy firms Greenco Group and Welspun New Energy will invest in green energy on a large scale in the Deendayal Port Authority (DPA) located in Kandla, Gujarat.

These companies will set up in place green hydrogen and ammonia plants there. As much as 1 lakh crore could be earmarked for this project.

This is the biggest ever investment in this industry and the energy infrastructure in India. The port authority has offered expressions of interest on 14 parcels of land measuring 300 acres in October of last year.

Each parcel of land is designated to produce 10 lakh tons per year (MTPA) of ammonia green. According to reports, last month, DPA allocated plots to four companies.

A source stated that DPA provided 14 plots of land with an area of 4000 acres. From this, six plots have been assigned to Reliance.

L&T has been allocated five parcels. Greenco Group two and Welspun New Energy one. Four companies made the highest bid during the auction.

This information was not disclosed because of the introduction of the Model Code of Conduct before the general elections. Sources suggest that an official announcement regarding this will be announced in June following the elections.

Kandla Port aims to produce 7 MTPA ammonia in green as well as 1.4 MTPA green hydrogen. It is situated inside the Gulf of Kutch, DPA is one of the main ports along the west coast of the country.

What Is The Target?

Green hydrogen (GH2) is produced by electrolyzing water with energy derived from renewable energy sources. It doesn’t emit any greenhouse gases.

This is part of the worldwide effort to turn carbon dioxide into fuel. This will aid the world in achieving net-zero emission goals.

Ammonia is the most significant end-user segment of green hydrogen. It is a major factor in the production at a large scale of GH2.

In the context of the National Green Hydrogen Mission, the Ministry of Ports, Shipping, and Waterways has identified three ports for green hydrogen hubs before 2030. In addition to DPA, These are Paradip and Paradip in Odisha along with Chidambaranar Port in Tamil Nadu.

DPA had signed last year 13 MoUs in the energy sector such as ReNew EFuels, Statkraft India, Welspun New Energy, Sembcorp Green Hydrogen India, Torrent Power Ltd, NTPC Green Energy along with Greenko Group.

Reliance, Greenco, Welspun as well as DPA have not responded to inquiries. L&T has also refused to comment.

The Ministry has also formulated a National Action Plan for Green Shipping. This is a way to increase the utilization of renewable energy as well as green fuels to cut down on vehicle emissions from ports.

It also plans to use hydrogen and ammonia to fuel future usage in ports. The National Green Hydrogen Mission aims to transform India into the world’s leading center to produce, use, and sale of renewable hydrogen to cut down on trillion-dollar energy imports.

The goal of the mission is to meet the goal of producing green hydrogen at five MTPAs by 2030. Additionally, there is a renewable energy target of 125 GW as well as a reduction of 1 lakh crore of fossil fuels.

This will cut the greenhouse gas emissions by approximately 50 MT a year. It is possible to make an investment of around 8 lakh crore in this project.

Disclaimer: The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. We are here to provide timely updates about the stock market and financial products to help you make better investment choices.

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