India’s RIL plans to turn syngas to blue hydrogen

MUMBAI (ICIS)–India’s Reliance Industries Ltd (RIL) plans to repurpose its gasification assets valued at Rs 300bn ($3.97bn) to produce blue hydrogen at a competitive cost of around $1.2-$1.5/kg, it said in a presentation.

The company plans to repurpose a plant that currently converts petroleum coke to syngas to produce blue hydrogen at its Jamnagar complex in western Gujarat state, it said in the presentation released late on 12 February.

Blue hydrogen is produced using fossil fuels but captures and stores the carbon dioxide (CO2) formed during its production.

Reliance, which has set a net-zero carbon emission target by 2035, plans to use blue hydrogen until the production cost of green hydrogen is economically viable, the company said.

Green hydrogen is produced using renewable sources of energy and electrolysis to split water.

Hydrogen is labelled blue when it is produced by splitting natural or synthetic gas into hydrogen and carbon dioxide. The carbon dioxide released during blue hydrogen production is captured and stored underground through carbon capture and storage.

RIL chairman Mukesh Ambani had said that he expected green hydrogen production costs to come down to under $1/kg in a decade at the International Climate Summit in September 2021.

“In the interim, till cost of green hydrogen comes down, RIL can be the first mover to establish a hydrogen ecosystem, with minimal incremental investment, in India,” the RIL presentation said.

“Hydrogen production from gasification provides highly concentrated CO2 stream which provides unique opportunity to capture 15m tonnes/year of CO2 at 30% of typical cost of carbon capture,” RIL added.

This CO2 can be monetized by sale to urea producers and other companies, it added

Subsequently, as hydrogen from syngas gets replaced by green hydrogen, the entire syngas will be converted to chemicals, the company said.

“Transition to net carbon zero provides a unique opportunity to unlock value through repurposing of assets and upgradation of configuration,” the RIL presentation added.

RIL plans to enter into joint ventures to attract potential partners to produce value added downstream chemicals from the syngas.

The syngas provided a pathway to high value chemical streams the company said, adding that there was potential to produce C1 and C2 derivatives, oxo alcohols, and fertilizers like ammonia and urea as well.

“The gasification undertaking will be transferred, as a going concern on slump sale basis by way of a Scheme of Arrangement,” RIL said, adding that it had presented the Scheme of Arrangement to the National Company Law Tribunal (NCLT) for approval.

($1=Rs75.54)

Focus article by Priya Jestin