#EssarPower is setting up a super critical power plant at Salaya at an investment of Rs 16,000 crore.
CEO Kush Singh shares details, in conversation with Vikas Srivastava.
For the latest news and updates, visit: https://ndtvprofit.com
CEO Kush Singh shares details, in conversation with Vikas Srivastava.
For the latest news and updates, visit: https://ndtvprofit.com
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TVTranscript
00:00 SR group is once again trying to revive its power business.
00:05 Basically, they had 5000 megawatt of capacity earlier, conventional capacity, which now
00:11 they are once again trying to set up a supercritical power plant of 1600 megawatt as well as integrated
00:19 the carbon neutral setup that they are trying to do to become carbon neutral in the long
00:24 run.
00:25 We have with us Mr. Push, the CEO of SR Power to take us through the entire expansion plan
00:32 that they have.
00:33 Welcome to NDTV Profit and Success.
00:34 Thank you.
00:35 Thank you.
00:36 So, we have got to know that you are setting up a new supercritical power plant at Salaya.
00:39 So, can you take our audiences through to know what your plans are, what the investments
00:44 are and...
00:45 Sure.
00:46 Sure.
00:47 So, presently we have two units of 600 megawatt that is 1200 megawatt subcritical design based
00:52 on imported coal, but with the government of India's initiative of making ourselves
00:58 wholly dependent on indigenous reserves, we plan to set up two units of 800 megawatt each
01:04 ultra supercritical design based on domestic coal.
01:07 And this will add 1600 megawatt to the state of Gujarat and the nation and this will pump
01:14 power to Gujarat grid only.
01:17 And we are building an integrated green complex, green molecule complex in Salaya which will
01:25 constitute of solar and wind power coming from the Rana of Kutch where we are setting
01:31 up a 4000 megawatt of solar plant and 1000 megawatt of wind plant which we are setting
01:38 up in Jankambalia.
01:39 This power will come through the green corridor being set up by the government of Gujarat
01:45 PGCIL to Salaya and this power will feed 1 gigawatt hydrogen electrolyzer which will
01:53 produce 1 and 50000 tons of green hydrogen.
01:56 In order to have round the clock renewable power, we have a battery storage system and
02:03 we are also setting up pump storage at favorable site.
02:06 And all these will connected to the green corridor so that we get round the clock renewable
02:11 power of 1 gigawatt to the hydrogen electrolyzer.
02:14 This hydrogen electrolyzer will produce green hydrogen which will then go to the green molecule
02:19 island.
02:20 The CO2 generated from these power plants will be captured and will be sent to the green
02:25 molecule island.
02:26 The air separation unit will capture nitrogen.
02:29 It will also go to the green molecule island and in the green molecule island we will be
02:34 producing HVO that is hydrogenated vegetable oil, SAF that is sustainable aviation fuel,
02:41 green methanol by virtue of mixing CO2 and green hydrogen and green ammonia by mixing,
02:46 by synthesizing nitrogen and green hydrogen.
02:49 All these green molecules produced will be exported to our SR oil UK.
02:55 So this whole setup is a 100% export oriented green molecule setup.
03:01 And as SR's policy to be backward and forward integrators and own all facets of the value
03:09 chain, we are setting up our own battery manufacturing setup, our own solar module
03:15 manufacturing setup so that we are fully dependent on ourselves and we have complete control
03:20 on the value chain.
03:21 Right.
03:22 As you mentioned that you have an entire plan you know this backward forward integrated
03:26 plants.
03:27 So what is the kind of total investments that you are looking at and over what period you
03:31 are?
03:32 So the power plant will have approximately 16,000 crores of investment.
03:36 And just because it is state of art ultra supercritical design, so REC and the ministry
03:42 of power has is organizing REC and PFC to fund the complete 85,000 megawatt of thermal
03:50 capacity addition which is having, which is happening in the country till 2029 of which
03:55 this 1,600 megawatt is a part.
03:57 So this will be funded by REC and PFC.
04:00 So the entire fund will come from REC.
04:02 REC and PFC.
04:03 There is no equity contribution.
04:04 Equity will be there.
04:05 And this green island constituting of solar power, wind power, hydrogen generation plant,
04:13 the green molecule island, all this will constitute of an investment of approximately 3.2 to 3.4
04:20 billion dollars which also we have approached, we have submit our documents to REC for their
04:26 approval and then subsequent disbursement as the project grows.
04:30 So is there any contribution from your EAP plant from UK also?
04:36 Yes.
04:37 They will be the owners of this green molecule island because this all green molecule will
04:43 be exported to them.
04:44 And in terms of timeline you are saying, what will be the timeline that you have set up
04:50 for each and every project?
04:52 The ultra supercritical plant will come by 2028 and this, the solar and wind plant by
05:00 2026, the hydrogen plant by 2026, the HVOSAF by 2026 and the green ammonia by 2027 because
05:12 it takes 3 years time to set up the ammonia plant.
05:15 The compressor involved in the ammonia plant is the lead item.
05:18 It takes about 28 months for its supply.
05:21 One last question, you said that your generation of production of green hydrogen costs somewhere
05:28 around 2.5 dollars per kg.
05:31 So that 2.5 dollars is a good enough amount where you can even look at exporting this
05:36 to your domestic customers or buyers.
05:39 See, the hydrogen cannot be transported.
05:42 It is impossible to transport hydrogen.
05:44 So we have to, if you want to transport hydrogen to a buyer, you have to liquefy it, pressurize
05:48 it, it amounts to a lot of cost.
05:50 There are constraints with respect to hydrogen storage as well.
05:53 Various limitations.
05:55 So, we prefer making green molecule out of green hydrogen which can be easily exported
06:03 as different forms of energy.
06:05 Like today Japan is a very big market for green ammonia.
06:08 They do not have land for generating green power.
06:12 And for all their coal based plants, they plan to combine 30% of green ammonia and replace
06:19 coal with 30% green ammonia.
06:21 So they are huge buyers of green ammonia.
06:23 So they are one of the key off takers if you plan to expand this business and look for exports
06:29 in Europe as well as Japan.
06:31 So, given that it is kind of a test or a pilot project.
06:36 It is a one gigawatt project.
06:38 So basically what I am trying to say is that this can be a precursor to maybe you are looking
06:43 at India business.
06:44 Yes.
06:45 This is the only 100% export oriented hub which is right now being set up in India.
06:52 No, I am asking from the point of view of domestic customers.
06:56 Can SR also look at domestic customers?
06:58 Yes, yes, of course.
06:59 Of course.
07:00 We will.
07:01 We will.
07:02 Thank you very much.
07:03 Thank you very much.
07:04 Thank you.
07:05 Pleasure talking to you.
07:06 Thank you.
07:07 Thank you.
07:08 (dramatic music)