Adani Group will invest $20 billion in clean power generation, component manufacturing, transmission and distribution over 10 years. The size of the investment rivals fellow billionaire Mukesh Ambani's $10 billion push toward green energy over three years.
" Over 75% of Adani's capital expenditures through 2025 is in green technologies," said Gautam Adani, adding that the group is the world's largest producer of solar energy if generation, under construction and contracted projects are included. He spoke at the JP Morgan India Investor Summit on Tuesday.
Adani's investment plans come close on the heels of similar green energy initiatives similar to Ambani's competitor, who is setting up an integrated renewable energy ecosystem in Jamnagar, Gujarat. Reliance Industries Ltd plans to establish four so-called Gigafactories to produce solar modules, hydrogen, fuel cells and a battery grid to store electricity.
Huge investments in green energy come amid pressure from governments and investors for companies reliant on fossil fuels to cut their carbon footprint to fight climate change.
Adani also recently announced its entry into the petrochemical business through Adani Petrochemicals Ltd. The company will establish refineries, petrochemical complexes and specialized chemical units in Gujarat, a direct challenge to Reliance Industries.
The Adani Group also plans to triple its renewable energy generation capacity over the next four years to 63% of its total portfolio from 21% today. By 2030, the group aims to power all data centers with renewable energy and make its ports carbon zero by 2025.
"Our renewables portfolio has reached our initial goal of 25 gigawatts a full four years ahead of schedule. This sets us up to be the world's largest renewable energy generation company by 2030." Adani said.
Adani has 4,920 MW of operating capacity for renewable energy generation and another 5,124 MW under execution.
The group's ambition to produce the world's cheapest green energy reflects the ambitious vision of Ambani, who said on Sept. 3 that India could make green hydrogen the most affordable fuel option by reducing its cost to $1 per kilogram in a decade. Green hydrogen, used as a fuel in industry and automobiles, has little or no carbon emissions.
Adani added that the group is now the largest private energy producer in India, the largest private port operator, the largest private airport operator, the largest private electricity and gas services company, the largest private electricity transmission company and the largest infrastructure developer in renewables.
"In the last eight years alone, we have acquired more than 50 assets valued at approximately $ 12 billion," he said.
Regarding the company's digital business, Adani said the group's plans for airport-centric growth include urban developments including entertainment facilities, e-commerce, logistics capabilities, aviation-based industries and smart city development.
For the next two decades, Adani said, India will have the largest and smallest middle class ever and will be among the top four countries in the world by market capitalization. "That is the leverage that we have to take advantage of," he said.
But, as if the pandemic weren't enough, another challenge looms and India will have to play a major role in the balance. If the crisis of 2001 was the bursting of the Internet bubble and the housing bubble of 2007, and if the crisis of 2020 was the pandemic, now we must confront and manage the crisis of climate change collectively,”he said.
Managing the climate crisis will require all countries to unite, perhaps like never before, and work together.
Those criticizing the pace of climate reform must remember that the economic and industrial power of the West lies on a carpet of carbon soot several centuries deep. A hundred years ago, today's climate reformers burned more than 800 million metric tonnes of coal, that's more than India produces today. "
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