News Archives - Hydrogengentech

In a significant move towards global expansion, REC Ltd, a state-run financier, has secured a sanctioned green hydrogen ammonia project in Oman and is exploring prospective projects in Bhutan, Nepal, Bangladesh, and Sri Lanka. This strategic decision comes after REC attained the prestigious ‘Maharatna’ status, allowing it to invest in projects beyond India’s borders. In an exclusive interview with ETEnergyworld, REC’s Chairman and Managing Director, Vivek Kumar Dewangan, expressed his enthusiasm for financing green projects within the framework of the India-Middle East-Europe Economic Corridor (IMEC) and the ‘One Sun, One World, One Grid’ (OSOWOG) initiative. This article delves into REC’s international expansion plans and the potential impact of these projects on the renewable energy landscape.

REC’s Green Hydrogen Projects in Oman and South Asia

REC’s foray into green hydrogen projects begins with a sanctioned project in Oman. The company aims to leverage its expertise in the power sector financing and development to contribute to the growth of green hydrogen ammonia production in the region. This initiative aligns with Oman’s commitment to reducing carbon emissions and transitioning to a sustainable energy future. Green hydrogen, produced through electrolysis using renewable energy sources, holds immense potential as a clean and versatile energy carrier.

In addition to the Oman project, REC is actively exploring opportunities in South Asian countries like Bhutan, Nepal, Bangladesh, and Sri Lanka. These countries offer promising prospects for renewable energy development, and REC sees them as strategic partners in the pursuit of a greener future. The projects being considered include hydro power facilities, transmission lines connecting India to Bangladesh and Sri Lanka, and other forms of renewable energy. The selection of these projects will be guided by India’s Ministry of External Affairs (MEA) to ensure alignment with the country’s strategic interests.

The India-Middle East-Europe Economic Corridor (IMEC)

REC’s international expansion plans are closely tied to the India-Middle East-Europe Economic Corridor (IMEC). This proposed economic corridor aims to enhance economic development and promote connectivity and integration among Asia, the Persian Gulf, and Europe, across various sectors including trade and energy. By financing green projects within this framework, REC can contribute to the sustainable development goals of multiple countries involved in the corridor. This collaboration presents a unique opportunity for REC to leverage its expertise and strengthen its position as a global power sector financier.

The ‘One Sun, One World, One Grid’ (OSOWOG) Initiative

The ‘One Sun, One World, One Grid’ (OSOWOG) initiative, initially proposed by Indian Prime Minister Narendra Modi in 2018, aims to supply solar power to around 140 countries through a common grid network. This visionary concept envisions the seamless transfer of solar energy across borders, contributing to global energy security and sustainable development. REC’s involvement in financing projects aligned with OSOWOG reinforces its commitment to promoting renewable energy on a global scale. By fostering international cooperation and leveraging its financial resources, REC can play a pivotal role in realizing the ambitious goals of this initiative.

REC’s Impressive Growth and Loan Book Expansion

REC’s loan book has witnessed remarkable growth, reflecting its commitment to financing renewable energy projects in India and beyond. The company’s loan book grew from Rs 3.85 trillion at the end of March 2022 to Rs 4.35 trillion at the end of March 2023. In the first quarter of the current financial year alone, an additional Rs 190 billion were added. This exponential growth trajectory suggests that REC’s loan book could exceed Rs 5 trillion by the end of the year.

Last year, REC reported sanctions totaling Rs 2.68 trillion, and it is on track to reach nearly Rs 2 trillion by the end of September. The total sanctions for the year are projected to be around Rs 4 trillion, with disbursements expected to reach approximately Rs 1.5 trillion. These impressive figures underscore REC’s role as a leading power sector financier, facilitating the development of renewable energy projects in India and now across international borders.

Diversification into Non-Power Infrastructure and Logistics

While REC’s core focus remains on power sector financing and development, the company has also diversified into non-power infrastructure and logistics sectors. This diversification allows REC to extend its financial assistance to projects beyond the power sector, covering areas such as airports, metro systems, railways, ports, bridges, and more. By expanding its scope of operations, REC can contribute to the overall infrastructure development of the countries it operates in, further strengthening its position as a key player in the finance and development of critical projects.

Conclusion

REC’s international expansion with green hydrogen projects in Oman and South Asia marks a significant milestone in the company’s journey towards becoming a global leader in renewable energy financing and development. With the ‘Maharatna’ status and its expertise in power sector financing, REC is well-positioned to contribute to the growth of green hydrogen production and other renewable energy projects in these regions. As the company continues to expand its loan book and diversify into non-power infrastructure, REC’s impact on the sustainable development of the global energy landscape is set to grow exponentially. Through strategic partnerships and alignment with initiatives like IMEC and OSOWOG, REC is poised to play a transformative role in accelerating the transition to a cleaner and greener future.

India’s G20 Presidency Theme: “Vasudhaiva Kutumbakam”

India’s G20 presidency was framed by the theme “Vasudhaiva Kutumbakam,” which translates to “One Earth, One Family, One Future.” This theme draws inspiration from the Maha Upanishad, an ancient Sanskrit scripture.
The theme underscores the profound interconnectedness of all life forms, including humans, animals, plants, and microorganisms, emphasizing their reliance on Earth and the broader universe.
It also encapsulates the concept of LiFE (Lifestyle for Environment), promoting environmentally sustainable and responsible lifestyle choices, both at the individual and national levels, to pave the way for a cleaner, greener, and more sustainable future.

India’s G20 Priorities: A Comprehensive Approach India’s G20 presidency centered around several key priorities:

Green Development, Climate Finance & LiFE: Emphasis on environmental sustainability and responsible living choices.
Accelerated, Inclusive & Resilient Growth: Promoting growth that is inclusive and resilient, taking into account the needs of all nations.
Accelerating Progress on SDGs: Focusing on achieving the Sustainable Development Goals.
Technological Transformation & Digital Public Infrastructure: Embracing technology for development and establishing digital public infrastructure.
Multilateral Institutions for the 21st Century: Reforming and revitalizing multilateral institutions to meet contemporary challenges.
Women-led Development: Empowering women in decision-making and socio-economic development.

Working of G20: Tracks of Engagement The G20 operates through two main tracks of engagement:

The Finance Track: Comprising finance ministers and central bank governors.
The Sherpa Track: Led by Sherpas, who serve as personal envoys of member nations’ leaders.

Both tracks include working groups that address specific themes and issues with participation from relevant stakeholders.

The Significance of the G20 The G20 emerged in 1999 in response to the late-1990s financial crises, particularly affecting East Asia and Southeast Asia. Its primary objective is to ensure global financial stability, with a particular focus on involving middle-income countries. The G20 collectively represents 60% of the world’s population, 80% of global GDP, and 75% of global trade.

Key Takeaways from the New Delhi Summit

Inclusion of the African Union:

The African Union (AU), a 55-member bloc, was formally granted permanent membership in the G20, alongside the European Union. Previously, only South Africa was a G20 member from the African continent.
This move aimed to enhance the representation of the Global South within the G20, countering the historically dominant role of G7 countries.
It also occurred in the context of expanding BRICs membership, with nations like Saudi Arabia and Iran joining, potentially positioning it as an alternative to the G20.

New Delhi Declaration:

The New Delhi Leaders’ Summit Declaration was adopted unanimously during the G20 Summit, emphasizing several key priorities set by India.
These priorities encompassed:
- Sustainable economic growth, inequality reduction, and stability.
- Financial inclusion and the importance of Digital Public Infrastructure (DPI).
- Advancing the Sustainable Development Goals (SDGs) and addressing critical issues like hunger, health, and education.
- Comprehensive commitments to climate action and the implementation of the Paris Agreement.
- Reforms in Multilateral Development Banks (MDBs).
- Empowerment of women through dedicated efforts.

India-Middle East-Europe Economic Corridor:

India, along with the United States, the UAE, Saudi Arabia, France, Germany, Italy, and the European Union, entered into a Memorandum of Understanding (MoU) to establish the India-Middle East-Europe Economic Corridor (IMEE-EC).
This economic corridor will encompass rail and port links connecting the Middle East, South Asia, and eventually Europe.
The IMEE-EC seeks to foster economic integration and presents a strategic challenge to China’s Belt and Road Initiative.

Global Biofuels Alliance:

Prime Minister Narendra Modi announced the launch of the Global Biofuels Alliance (GBA), which includes 19 countries and 12 international organizations.
The GBA aims to facilitate global collaboration for the advancement and widespread adoption of biofuels, serving as a central repository of knowledge and expertise.

Differing Views on Ukraine:

The G20 Summit witnessed varying perspectives on the Ukraine conflict, with the New Delhi Declaration avoiding direct criticism of Russia.
While the declaration denounced the use of force for territorial gain, it refrained from naming Russia explicitly, in contrast to previous statements that called for Russia’s withdrawal from Ukraine.

In conclusion, India’s G20 presidency and the New Delhi Summit were marked by significant achievements and a commitment to addressing global challenges collectively. The inclusivity of the African Union, the comprehensive New Delhi Declaration, and strategic initiatives like the IMEE-EC and GBA reflect the G20’s evolving role in shaping the world’s economic and political landscape. India’s presidency contributed to the G20’s mission of fostering global cooperation and sustainable development for the well-being of all nations.

News Archives - Hydrogengentech

Going Global with Green Hydrogen: REC Expands International Portfolio

India’s G20 Presidency: Key Highlights and Takeaways

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