Reliance Industries Launches $5 Billion Green Hydrogen Push

Jamnagar Complex to House Hydrogen Operations

Reliance Industries Ltd. announced a $5 billion investment plan to develop green hydrogen production capacity at its Jamnagar refining complex in Gujarat, targeting output of 1 million metric tons per year by 2030. Chairman Mukesh Ambani unveiled the project at the company's annual general meeting on March 11, calling it "the cornerstone of Reliance's transition from a fossil fuel company to a new energy leader."

The Jamnagar facility will integrate 10 gigawatts of solar photovoltaic capacity, 5 GW of wind power, and advanced alkaline and proton exchange membrane electrolyzers. Reliance plans to achieve a levelized cost of hydrogen below $2 per kilogram by 2028, competitive with grey hydrogen produced from natural gas.

Downstream Applications

The green hydrogen will initially be consumed within Reliance's own operations. The Jamnagar refinery, one of the world's largest, currently uses approximately 1.2 million metric tons of grey hydrogen per year for desulfurization and hydrocracking processes. Replacing this with green hydrogen would reduce the refinery's carbon footprint by approximately 12 million metric tons of CO2 annually.

"This is an elegant decarbonization strategy," said Rahul Prithiani, director of CRISIL Research. "Reliance creates its own captive demand, eliminating offtake risk, while building the capability to serve external customers as the market develops."

Electrolyzer Manufacturing

Reliance is simultaneously establishing electrolyzer manufacturing capacity through its subsidiary Reliance New Energy Ltd. The company acquired a controlling stake in Danish electrolyzer maker Green Hydrogen Systems in 2024 and is constructing a giga-factory in Jamnagar with annual capacity of 5 GW of electrolyzers.

India's National Green Hydrogen Mission, launched in 2023, targets 5 million metric tons of annual production capacity by 2030 and has allocated 197 billion rupees ($2.3 billion) in government incentives. Reliance's investment represents the single largest private commitment under the program.

Competitive Landscape

Reliance faces competition from Adani Green Energy, which is building a 1-million-ton hydrogen facility in Mundra, Gujarat, in partnership with France's TotalEnergies. Indian Oil Corporation, NTPC, and GAIL (India) are also pursuing smaller-scale green hydrogen projects.

Globally, Saudi Arabia's NEOM green hydrogen project, being developed by Air Products, ACWA Power, and NEOM, targets 600,000 metric tons per year and is expected to begin production in 2026.

Export Potential

Reliance is evaluating export markets for green hydrogen derivatives, including ammonia and methanol, which can be shipped in existing infrastructure. Japan, South Korea, and the European Union have all set ambitious hydrogen import targets. Japan's Green Transformation strategy calls for importing 3 million metric tons of hydrogen equivalent by 2030.

The company signed a preliminary offtake agreement with Japan's JERA, the world's largest LNG buyer, for 200,000 metric tons per year of green ammonia starting in 2029.

Financial Position

Reliance Industries has the financial capacity to fund the investment from operating cash flows, which totaled approximately $16 billion in fiscal year 2025. The company's net debt-to-EBITDA ratio stands at 0.6 times, providing significant headroom for expansion. Shares of Reliance traded at approximately 2,800 rupees ($33), giving the company a market capitalization of $225 billion.