India’s top gas company GAIL will foray into hydrogen generation and take the acquisition route to scale up its renewable energy portfolio as it pivots business beyond natural gas to align with the energy transition being witnessed across the globe.
As part of a push to embrace cleaner forms of energy, GAIL will be laying pipeline infrastructure to connect consumption centres to gas sources while also augmenting its renewable energy portfolio, GAIL Chairman and Managing Director Manoj Jain said.
“The global energy sector is witnessing a paradigm shift in recent years as the world is transitioning to a sustainable energy future,” he said in the company’s latest annual report.
To accomplish a cleaner primary energy mix for India, the government is emphasizing the expansion of the natural gas sector to achieve a gas-based economy along with growth in renewables. GAIL as a leading integrated energy major has aligned with this vision, he said.
The firm is laying around 6,000 km of pipeline, including a west coast to east coast pipeline from Mumbai to Jharsuduga in Odisha via Nagpur, he said. It currently has around 13,700-km of the natural gas pipeline network.
GAIL “will be selectively investing in the renewable energy domain given the future growth potential,” he said. The company “has been scouting for opportunities to scale up the RE portfolio from the current 130 MW through bidding and other inorganic routes such as mergers and acquisitions.”
“In addition, the company is also foraying into ethanol and hydrogen generation,” he said without giving details.