I Don’t See Energy Storage as a Threat to Our Current Businesses.”, Varun Puri, MD, Green Power International

Founded in 2002, Green Power International Pvt. Ltd., is an Engineering, Procurement, and Construction (EPC) solutions provider specializing in gas and liquid fuel-based power generation systems. Focused on turnkey solutions has been providing EPC services for power plants up to 100 MW, in addition to Heat Recovery and Power Conditioning Solutions.

With over 900 MW installations worldwide. GPI has successfully executed over 750+ MW of Combined Heat and Power (CHP) and Combined Heat, Power, and Cooling (CHPC) plants. These plants operate on a diverse range of fuels, including natural gas, wood gas, syngas, biogas, heavy fuel oil (HFO), and more, reaffirming the company’s commitment to promoting sustainable energy solutions for a brighter tomorrow. In a changing world where green energy is centrestage, we speak to Varun Puri, Managing Director, on how the firm is aligning to a new future.

For a firm that is just over 20 years old, how is GPI handling the transition away from fossil fuels, namely diesel gensets? A detailed summary of GPI’s current business verticals and outlook for each.

Transitioning away from fossil fuels is inevitable, as they are finite. We are amidst a period of energy transition to adopt clean energy practices that are sustainable in the long term. In this period, I feel fossil fuels will play their part, and adoption of a hybrid energy solutions model shall prevail with a combination of a captive power source, renewable energy source and energy storage. To our fortune, in our 20-year history, we’ve gathered vital experience by executing various jobs in challenging, risky environments. So, we are well placed to adapt to this transition period. We have leveraged our strength as an international player with a strong EPC core to bridge the crucial gap between the customer and technology providers in the energy sector at a global level.

In our gas engine business, we have aligned to make gas gensets more affordable to our customers by increasing our assembly operations in India. We now offer gensets up to a rating of 1000 kW built in India by us. We have invested in setting up new world-class testing and assembling facilities to match our customers’ demands of delivering quality power solutions promptly. With these investments, we reduced the lead time of the imported gas gensets from 24 weeks to only 12 weeks—ex works in India. These gensets will also be offered in Africa, the Middle East and Southeast Asia via our foreign subsidiaries in Nigeria and Thailand.

By completing relevant decarbonisation projects, we have been part of our nation’s road to the goal of Net Zero by 2070, and we certainly plan to expand our participation to more such opportunities in India and overseas. With our Carbon Capture project already commissioned in Vindhyachal, we have already captured more than 3000 tonnes of CO2 from the flue gases of the country’s largest thermal power station. Our second project centred around decarbonisation is a hydrogen fuel project, which will be commissioned soon in June 2024. It is coming up at NTPC’s R&D campus in Greater Noida. We use Solid Oxide Electrolytic Cell (SOEC) Technology to make green hydrogen, which is much more efficient than the traditional Alkaline technology. NTPC intends to inject this hydrogen into their existing hydrogen grid. Though the concept of hydrogen is not new and has been around for ages, this project will be the first of its kind to be implemented in India because of the technology.

With the growing emphasis on power accessibility and 24/7 availability, what role do companies like GPI play in this new era? Where do you see long term opportunities for GPI?

We have always adopted an approach to provide end-to-end turnkey EPC solutions to our customers, which was earlier centred around gas-based power generation. With our presence in Africa and Asia, we leveraged our strength as an international player with a strong EPC core to bridge the crucial gap between the customer and technology providers in the energy sector at a global level. If one looks up, few turnkey solutions providers have good technical execution and risk-taking capability. So, we have positioned ourselves in that bracket and strategically expanded our national and international ties to offer turnkey energy solutions in a hybrid model beyond just power generation. This would include combinations of alternate fuel generation, decarbonisation solutions coupled with renewable energy, utilisation of biowaste to make bio-CNG, etc.  All these areas are key areas for us for future growth.

From a technical standpoint, how tough is it to shift from manufacturing diesel gensets to gensets that can handle different gases as fuel?

Technically, gas and diesel gensets are very different regarding operating principles and exhaust emissions. A diesel genset emits sulphur dioxide, which is not in natural gas genset exhaust. This harmful acid, capable of causing acid rain, is absent in gas gensets, offering a promising step towards a cleaner environment. The absence of sulphur dioxide in gas gensets makes them a more breathable and sustainable alternative. The other two concerning emission constituents in diesel and gas gensets are Particulate matter and CO2. However, the CO2 emission levels in a gas genset are reduced, and the PM emission levels are nearly negligible compared to those in a diesel genset. This is mainly because diesel, as a chemical compound, has higher impurities and complex hydrocarbons, whereas gas has much simpler chemistry and is cleaner.

As a customer, changing from diesel to a gaseous fuel like natural gas is not a hassle. The gas used is the same piped gas we use in our house for cooking; one needs a separate skid to provide a higher pressure (>1 bar) suitable for the genset. I feel that the change is seamless and better regarding fuel handling, cleanliness, and ease of maintenance.

Where do you see GPI going in the coming two decades? Are you looking at other diversifications towards green energy?

As Green Power International, we see ourselves expanding further into the energy space, aiming to eventually become a total energy solutions provider with a global presence on all continents. Our regular participation will expand to multi-thousand crore value jobs directly or through tie-ups and JVs. It is achievable much before two decades.

Regarding diversification, we have increased our focus on the compressed biogas segment by forming strategic associations in 2024. We intend to use efficient membrane technology for our projects, which helps our plants achieve a better methane content, up to 99%, than other traditional technologies available in the market.

In the infra space, we already have a foot in through our JV, which has executed over 2000 total kilometres of Railway electrification projects in five years since 2017. It is a very different execution challenge than a gas genset/biogas-based EPC, where the site keeps moving. There is a big push from the Railways to adopt cleaner energy sources to drive the trains. They have put effort into converting trains to make them run on hydrogen through an IC engine or a fuel cell. This aligns with our vision of contributing towards sustainable energy solutions through our projects. We intend to leverage this opportunity by making bids for relevant projects.

Do you see falling energy storage costs as a near term threat? Why, why not?

I don’t see energy storage as a threat to our current businesses. Energy storage forms a key component of a hybrid power generation system, including a renewable energy source coupled with energy storage and a captive power source (based on gas or liquid fuel) to supplement the power requirement when the renewable source is unavailable.

To align with our long-term vision of becoming a total energy solutions provider, we will soon offer battery energy storage solutions on an industry scale as a part of a turnkey hybrid energy solution.

What are the alternate fuels you are most bullish on, in terms of building a market-based case for success? Where do you see the CBG push underway currently going?

Compressed Biogas (CBG) is one of the most viable alternate fuels. The government’s increased focus on improving the mix of natural gas in the national energy mix indicates the opportunities that can potentially arise in this sector. Considering the same, over the past four years, we have significantly expanded our offerings in cleaner energy solutions in India and internationally. By entering the CBG sector, we align with the government’s SATAT scheme, which heavily subsidises CBG projects. We plan to invest as developers in the long term to support this initiative.

Hydrogen is an excellent alternative fuel as its combustion has little to no CO2 emissions. However, it’s not yet available and is not viable. CO2 capture, utilisation and storage is a more available solution to clean up the existing assets running fossil fuels. CO2 capture also paves the way for synthesising it with Green hydrogen to make alternate fuels like green ethanol and methanol, which have commercial value in the fuel blending and shipping industries. We continue working on upcoming carbon capture, hydrogen, and alternative fuel projects in the private and public sectors.

Do you agree with the current target of 15% share of gas in energy mix by 2030?

I firmly support India’s target of achieving a 15% share by 2030. The goal is certainly challenging considering that the contribution of gas in India’s energy mix has been fluctuating between 6-8% over the past decade; however, it is essential to set such targets and talk about them regularly to lead a change. Achieving this goal will also supplement India’s Net Zero by 2070 target. The increased scale should help reduce gas prices through economies of scale or focus more on compressed biogas solutions. By diversifying our energy portfolio, we can bolster energy security and reduce our reliance on coal, contributing to a more resilient energy infrastructure.

Furthermore, this shift promises substantial economic benefits through investments in natural gas infrastructure, creating jobs and stimulating growth in related industries. However, we must address several challenges to achieve this target, including substantial infrastructure investment and securing a stable and affordable natural gas supply amidst global market fluctuations. Balancing investments between natural gas and renewable energy sources is crucial for long-term sustainability. While natural gas is a finite resource, it will play a vital role in this transitional period of our energy landscape. Additionally, the increased focus on natural gas should be supported by growing subsidies and favourable policies for natural gas-based equipment, whether for power generation or other processes. Despite these challenges, I am confident we can successfully transition to a cleaner, more secure, and economically vibrant energy future with a strategic and coordinated approach.