From - https://twitter.com/drprashantmish6/status/1484574478629994497
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(1) Cummins in USA is a group having interest in multiple verticals, like we have Tata Group in India. Cummins India is basically consists of Automotive Engines & Genset engines.
(2) As of today , there seems to be two leading players in the world for PEM Electrolyzers (a) Cummins technology based …earlier they had collaboration with “Air liquide” …and they together successfully installed world’s largest 20 MW Electrolyzer in North America
(b) Linde Industries ( not linde India ) is another leading player is in the process of installing a Mega PEM Electrolyzer of 24 MW in Germany. This is the biggest in the world installed so far
(3) Coming back to India , One USA based company called Ohmium has already set up a mega PEM electrolyser plant with annual capacity of 500MW , scalable up to 1 GW in Bangalore . They have started operation …they are collaborating with IIT madras for further development of components …they want to make India as a Hub with development of local vendors .First shipment of electrolysers from india has already started ( previous posts may please be referred)
Ohmium is not listed in India , but we have to keep an eye on vendors who would supply them the components like Anode, cathode ,polymer Electrolyte and other components…
Reliance also has concrete plans to manufacture PEM electrolysers with partnership with a Danish company called Stiesdal
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We need to understand that just being able to manufacture electrolyzers may not mean a profitable business… capital goods companies have diverse revenue streams and electrolyzers can be just a mediocre part of it…also electrolyzers do not seem very hi tech and complex components, although not studies deeply…
In above context would be good to know how profitable and also what percentage of revenue is this business for likes of Cummins & Linde…
Just curious from above it seems ohmium one is largest installed in world so far?
Also, is electrolyzers an annual maintenance/service type of installation like say a toll bridge for the companies like Cummins or a one time installation? Seems expertise is in getting the blocks (built by others) together and make the whole piece running…does not seem much value add at present to me and a job which gradually many capital goods firms can do…
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Profitability in Electrolyzer business:
Hydrogen was always there - (1) it was needed by Fertlizer company, petroleum refineries, steel industry and many more…but these people were extracting hydrogen from coal, methane at a cheaper cost , but with penalizing our Planet- Mother Earth by emitting Carbon into its atmosphere. Now by mandate they can not do it any more …if they need hydrogen , they should extract from Water by using renewable sources of energy such as Solar wind which are plenty …water is plenty - Mother Earth’s surface is covered with 70% water bodies.
(2) Currently, we are generating electricity mostly from coal…again carbon emissions…so we are going to now produce our electricity from Solar/ wind…but how do we store those huge amount of electricity power? So we are talking of using excess solar/ wind power to split hydrogen from water and then convert back to electricity by fuel cell and feed to the grid during lean hours when sunlight wind not available.
(3) We are also talking of using hydrogen in automobiles as both IC and fuel cell format.
(4) we are talking of Using hydrogen for all our energy needs , if required one can store and distribute it in form of ammonia or liquid hydrogen in a cryogenic tank.
Profitability in any business would depend upon Market Demand vs Supply and when there are limited no of players with huge demands …then as a seller you decide how much profit you want to make!
Coming to the complexity of the business , yes it is complex and so it is expensive …the cathode anode electrodes are coated with Expensive noble metals as Catalysts such as Platinum , Iridium , Rhodium , Gold…and PEM technology is complex…
Coming to the size , it would depend upon your input electricity generated by solar Wind…
Today, the electrolysers are available at
400 KW, 1MW, 2 MW, 5 MW, 10 MW, 20 MW …the biggest one designed so far is 24 MW by Linde…
Manufacturing Plant annual capacity is different …all these plants are starting from 500 MW annual capacity scalable up to 1 GW per annum…
If Ohmium / Reliance has declared annual cumulative capacity of 500 MW…means they may produce electrolysers from 400 KW, 1MW, 2 MW, 5 MW, may be up to 10 MW…as per customer requirement , but cumulative starting capacities would be 500 MW per annum per manufacturer and then later scale up to 1 GW and then later may be up to 2 GW.
Now only few of the names are known…going forward , we may come to known few more names.
But what is our requirement…you can get an idea from this link below…these numbers what the minister has said is correct …he has also mentioned the target of European union countries…this information data has appeared in all news media a good no of times and PM Modi had declared this in various world forums which is recored and documented…so the target seems non- negotiable …
1GW =1000 MW
Yes, the Electrolyzer manufacturer may enter in to AMC- annual maintenance contract with their customers…since being a complex product , the customers may not be able to maintain on their own…
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May you share a few stocks in the Electrolyzer buisness?
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We are rightly talking about Electrolyser because Electrolyser is the Backbone in the Green Hydrogen value Chain. However as of today to the best of my knowledge , only one company called Ohmium (but not listed in India) has already started its operation in Bangalore and the first electrolyser has been exported to USA.
I believe ,the next in pipeline is Reliance…in my view Reliance can start manufacturing very fast since they have already signed up for partnership with a Danish Electrolyser company called Stiesdal.
Further, One Mega PLI scheme is under cards for manufacturing Electrolyzer in India - let us wait and see who are all parties applying for Electrolyzer manufacturing…But who could be the contenders ? You may get some idea from the following paragraphs.
Some of the Existing Solar/ wind energy players may eventually go in for Green hydrogen production.
Solar/ Wind/ Hydro Renewables Energy/ electricity is the starting point for producing Green Hydrogen. We already have a lot of existing players in Solar/wind some of which are of good investment bets for long term , if you want to participate in Green Hydrogen Energy story.
Tata Solar, Adani Green, ReNew Power
Sterling & Wilson , Inox Wind , Suzlon, Siemens Gamesa, websol, Borosil Renewables…
Tata Solar, Adani green are both EPC players in Solar and wind. Both companies are B2B and B2C in Solar business. Roof top solar has great future with latest simplification of Govt norms…no more listed vendors…you can buy from anywhere , photograph it and send it to your discom…you get 60% subsidy…apart from reduction in your electricity bill.
Sterling Wilson ( recently acquired by Reliance ) is a very good Global player EPC with O& M in Solar Power
ReNew Power - the only Indian player Listed recently in NASDAQ with a strong portfolio of Solar Wind 10 GW. Yet to list in India.
Suzlon, Inox wind , Siemens Gamesa (Nothing to do with Siemens India) is a wind mill supplier to Adani Green.
Websol is another player in Solar energy and Borosil renewable is the only solar glass manufacturers in india…
New Serious Players those who have declared their plan for entire value chain of Green Hydrogen :
Reliance wants to be the most integrated Renewable player with focus on Green hydrogen who is very serious with all acquisitions and collaboration in place …who can start their operations very soon.
Reliance wants to achieve four things- (1) With petroleum refining and marketing of petroleum products the company is emitting a lot of carbon. To become carbon neutral , it needs to invest in Green energy
(2) It also needs Green Hydrogen for captive consumption for their petroleum refining process
(3) Wants to be a EPC player in Green hydrogen supply chain
(4) Also wants to participate in EV program by developing A sustainable cost effective Sodium ion battery, first in the country. It has also applied for Battery PLI scheme
The next serous intender seems to be L& T… the easiest thing L& T could do is to tie up with another major existing player ReNew Power who already had a vast experience of installing & managing 10GW assets of Solar/ wind…L& T also has applied for Battery PLI.
Hero Future Energy has signed up with Ohmium for 1000 MW Electrolyzer program to produce Green Hydrogen in India & Europe.
JSW Energy has declared its plans for Green Hydrogen .
Oil & Gas PSU/ Utility
BPCL/ HPCL/ IOCL/ Indian Oil, GAIL, ONGC, NTPC & Coal India
The Oil PSU’s need Hydrogen for their petroleum refining need and mandatorily they have to put up Green Hydrogen Plants…
Also, All of them are trying to be carbon neutral by setting up Green hydrogen Plants. These are
cash rich companies and the Govt is taking the lead to invest in Green hydrogen projects which mostly would be used in Hydrogen fuel cells to convert it back to electricity And feed to the grid.
And some of the green hydrogen so produced will go for Automobile fuel…ultimately these oil psu will sell mostly hydrogen for automobiles rather than petrol diesel.
NTPC is supposed to play a leading role for feeding electricity to grid produced from green Hydrogen and gradually stop it’s Thermal power plants…
All of these above PSU’s may not go for manufacturing Wind mills or Solar photo voltaic module , they would simply place order and buy from other pvt EPC players like Tata, Adani, Reliance , L&T, and others
Fertiliser plants…
Fertiliser plants need green hydrogen for manufacturing Ammonia NH3 & DAP, UREA…either they have to put up Green hydrogen Plants…but perhaps they also have an option of buying out Green hydrogen from the open market
Hydrogen Fuel cell
When we say, Hydrogen fuel cell, we immediately understand it as Automobile fuel…
Hydrogen fuel cell is a reverse process of electrolyser. Electrolyzer splits water in to hydrogen and oxygen , but fuel cell takes hydrogen gas and oxygen from air to produce electricity and water .
So in reality, Hydrogen fuel cell could be an integral part or as a Combo with the Electrolyzer in Solar/ wind power plants…where ultimate aim is to feed the grid with Electricity.
Electrolyzer splits water to hydrogen…hydrogen then stored in a tank . .and when there is no sunlight and wind, the stored hydrogen can be converted to electricity by the Fuel cell and the power is fed in to grid. No fuel cell is required along with Electrolyzer where there is requirement of Green hydrogen only.
Electricity produced by Green Hydrogen through Hydrogen Fuel cell technology may become the Ultimate to drive Automobiles across the world.
Electricity for Home:
Now Roof top solar is becoming very popular.
Ultimately, What the world is looking for is to have a roof top solar panel and coupled with an electrolyser and fuel cell…so that you get 100% green energy 24X7.
In stead of electrolyser and fuel cell combo may be there could be an intermittent solution of sustainable battery as energy storage solution at homes…Day time excess power is stored in high capacity sustainable battery and night you use the stored energy !
Discl: These are my personal views and I could be wrong as to how things evolve - I am putting it up here purely for information and education purpose only.
I may have some investments in some of the aforesaid stocks.
Please do your own assessment before investing in any stocks
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L & T ties up with Norwegian company for Electrolyzer technology to push Green hydrogen- 2nd listed company after Reliance to enter in to Electrolyser business.
The Govt through various media news has declared Govt intention of coming out with a Mega PLI scheme for Electrolyser. L&T’s move indicates that it is entering in to the entire value chain of renewables.
#L& T has already applied for Advanced Battery solution system under Govt PLI
#It has entered partnership with another established player ReNew Power, Nasdaq listed company who is already in to Wind/ Solar with 10 GW in its portfolio.
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Green Hydrogen Plan in next Ten days-Indian Govt
The entire EU has taken a target of achieving 40GW Electrolyser capacity by 2030 to produce Green Hydrogen for their energy need… Unfortunately , the entire Europe don’t have adequate sunlight /wind during all 365 days in the year. And during winter which lasts for almost 4-5 months, most EU countries don’t have even adequate Sunlight/ wind which are the
starting point for producing Green hydrogen.
So it makes sense for Europe to import Green Hydrogen from India. Japan is also interested to import Green hydrogen from India ! Because Japan donot have much open space for putting up Solar panels.
In the mean time , Australia has a lot of sunlight and lot of open space for putting up huge solar plant. So Australlia is trying to become a Hydrogen exporting hub for exporting Green hydrogen to Europe and Japan…in fact Australia has already shipped the first trial shipment of Liquified Hydrogen to Japan…though this shipment is Grey Hydrogen !
Can India become a Green hydrogen exporting hub.?
The answer is yes …india is one among very few nations in the world which is blessed with all 3 important Gifts of God :
Sunlight , Wind, water - Rain /Sea
These are all the three required to produce Green hydrogen , which could meet not only our domestic requirement , but also export to Europe and Japan and rightly so the govt is hurrying up .
Please read these two latest articles to get an insights
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Hydrogen gas is a basic need as feed stock for many industries including Fertiliser and Petroleum oil refining… Hydrogen Produced from Coal/ Methane is a very old /conventional practíce being followed since decades…and in this process a lot of Carbon dioxide is emitted. This is no brainer - people knew.
Australia had a lot of coal mines and Japan needed Hydrogen as a feedstock for its industries and so both countries entered in to an agreement in a Pilot project …inked long back. CO2 produced would be captured as " Carbon capture"
But in today’s context, it does not fit in to today’s definition of Green hydrogen, which the world is looking forward.
So if Japan has to import real “Green hydrogen”, it has to depend upon none other than India- if India plays it’s Green hydrogen card properly
Linde India’s Parent Company is a well established player in the world for Hydrogen producing Electrolyser.
In fact they are in the process of installing the largest electrolyser with 24 MW capacity in Europe . .to break the record of Cummins electrolyser of 20 MW capacity in North America.
But I am not sure about its india strategy …
Linde India was well known for its portfolio of industrial gases such as Oxygen, Hydrogen, acetylene etc.
Whether Linde India is active in electrolyser business - I am not sure…
If you can provide some more information regarding electrolyser manufacturing and supplying in India , it would be useful
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This is an old news for reference.
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Hydrogen is green, carbon-neutral, zero-emissions etc … Everything about Hydrogen is perfect. But
I remember reading like storing and transporting Hydrogen fuel like how petrol and diesel are transported is very difficult. so, Could you provide us any insights , how the industry is going to tackle this issue? @1957
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Very interesting !
My understanding on the subject as follows !
(1) Now with the whole world not only talking about Green hydrogen , but also initiating action to Produce renewable energy based Green hydrogen for which only solar / wind power qualify and then water is required as raw material for producing Green Hydrogen !
(2) All OPEC countries including Saudi Arabia are all nervous…till date Hydrogen which was required by all industries as feedstock was derived from Hydrocarbon based fuel. But now hydrocarbon which produces Carbon Emission is no longer a preferred choice by the world for producing hydrogen …since it is no longer green…
(3) Japan is very desperate to use Hydrogen as energy to reduce carbon emission…so they think of taking Hydrogen/ Ammonia (Ammonia is a hydrogen carrier/ from Saudi Arabia …But Saudi Arabia by producing Hydrogen from HC fuel would increase Carbon emission in to earth 's atmosphere …a strategy which will not be accepted by the world forum…
So countries like Saudi Arabia could do is to negate carbon emissions , invest and put up more and more Solar power / wind power renewables in countries like India or in their own country…
It is called carbon trading …which means you do some sins …and to wipe out your sins , do some charity …
(3) under the current scenario-, india is going to gain a lot for producing Green hydrogen …because we don’t have dearth of Solar/ wind/ water …God is very kind to bless us with these 3 natural elements of the Earth …
And countries like Japan and Europe would buy from us. .
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You can please read my response to ashusharma .
There are three ways of transporting Hydrogen… (1) hydrogen is a Gas , but it can be Liquified just like ( CNG vs LNG) .
There are tanks called Cryogenic tanks which can carry liquid hydrogen just like LNG.
(2) There is a second way of carrying hydrogen … From hydrogen , Ammonia can be formed which is NH3…3 atoms of hydrogen with one atom of Nitrogen…
Where do we get nitrogen…plenty in air…in fact 77% of air is nitrogen…our Fertiliser plants make Ammonia NH3 easily out of hydrogen. Then From Ammonia , we make DAP… Diammonium phosphate which is a Fertiliser.
Ammonia is a liquid which can be carried in normal tanks…just like petrol diesel …Ammonia can be directly used as an Automobile fuel or can be shipped to another country where it can be again split back to hydrogen and nitrogen .
So here Ammonia becomes a Hydrogen carrier …
.
(3) Another way is transportation through Pipelines like CNG … even current CNG pipe lines can be used by blending Hydrogen with CNG 10-15% without any modification. …ultimately for 100% hydrogen transportation new pipelines can be made the cost will be much lesser than CNG since it will be made of FRP
Coming to blue hydrogen grey hydrogen…etc …it may be bit popular at the beginning…but since these involve carbon emission and or handling carbon through carbon capture …no one would prefer this ultimately.
The Ultimate is Green Hydrogen…
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Money raised through Green bonds is only to be used for Green energy projects.
However , we are currently no. 17 in the world in terms of Green Bond issuance. The Top 5 countries that raised money through Green bonds in 2021 are USA, Germany, China, France and UK occupying the top five slots.
Hydrogen blending with CNG started for fueling CNG vehicles and as Piped Natural Gas ( PNG) for domestic kitchen.
GAIL starts India’s maiden project of blending hydrogen into natural gas system in Indore - The Economic Times GAIL starts India's maiden project of blending hydrogen into natural gas system in Indore - The Economic Times
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