Reliance, Ashok Leyland in talks for development of H2 engines

Reliance Industries Ltd (RIL) is in advanced talks with Hinduja-owned truck and bus maker Ashok Leyland for the development and supply chain of hydrogen-powered engines.

Ashok Leyland will install fuel-cell engines in an existing fleet of 45,000 trucks that RIL has hired to transport refined products and other marketing goods as a first stage in the strategy, the sources said. This will allow the trucks to run on green hydrogen rather than diesel.

Beginning in 2025, Reliance intends to manufacture green hydrogen at its refinery facility in Jamnagar. With the advancement of technology, there are plans to increase the supply of hydrogen to the greater automobile market, especially for buses and taxis, the report said.

The sources spoke on condition of anonymity because the business plans are still in the private domain. The report quoted one of the sources as saying that this may include expanding the scope of cooperation with Ashok Leyland or forming similar partnerships with other automakers.

It is unclear at this time whether RIL would eventually partner with cab aggregators like Ola or Uber.

According to the sources, RIL and Ashok Leyland are finalising the partnership’s structure, prospective equity commitment, and capital expenditures.

Green hydrogen is the cleanest form of fuel when produced through renewable sources of energy. This August, at RIL’s AGM, Chairman Mukesh Ambani had unveiled his plan to shift to green hydrogen with an aim to start the transition by 2025.

Ambani said that while the company is one of the largest producers of grey hydrogen globally, it is assessing new technologies for making electrolysers in its efforts to produce low-cost green hydrogen in the country.

Ashok Leyland and RIL have an existing collaboration where Ashok Leyland provides driver training for RIL’s supply chain division. In Gujarat, RIL operates three driving schools and in terms of truck supplies, while Ashok Leyland is RIL’s main supplier.