GAIL considers acquisition route to boost renewable portfolio

GAIL, the top Indian gas company, has reportedly forayed into hydrogen production and will take the path of acquisition to upscale its renewable energy portfolio, as it drives business beyond natural gas in line with the energy transition being experienced across the world.

GAIL will be developing pipeline infrastructure as a part of a push to hold cleaner energy forms for connecting consumption centers to gas sources while proliferating its portfolio of renewable energy, according to Manoj Jain, the Managing Director and Chairman of GAIL.

He added that the global energy industry is experiencing a substantial shift over the years as the world transitions towards a future of sustainable energy. To achieve a cleaner mix of primary energy for India, the government is focusing on the expansion of the natural gas sector to attain a gas-oriented economy along with augmentation in renewables and GAIL has aligned with this vision as a key integrated energy company.

The company is laying close to 6,000 Kms of the pipeline, which includes a coast-to-coast pipeline from Mumbai to Odisha’s Jharsuduga via Nagpur. Currently, GAIL has a network of around 13,700 Kms of natural gas pipeline. The company will be specifically investing in the renewable energy sector given the potential for future growth.

GAIL has been scouting for upscaling opportunities for the renewable energy portfolio from the existing 130 MW through bidding and other inorganic paths like acquisitions and mergers.

Additionally, the company is also entering into hydrogen and ethanol generation, stated Jain, without delving into any further details.

Hydrogen is a clean fuel which when used in a fuel cell, produces only water. Many nations are foraying into hydrogen generation from various domestic resources like nuclear power, natural gas, renewable energy like wind & solar, and biomass.

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https://www.moneycontrol.com/news/business/gail-scouts-for-acquisition-to-augment-renewable-portfolio-to-foray-into-hydrogen-7371751.html