The Adani Group is entering an ambitious new phase in its renewable energy journey—anchored in large-scale solar manufacturing and a fully integrated green hydrogen ecosystem in Mundra, Gujarat. With Adani New Industries Ltd (ANIL) at the helm, the conglomerate is channeling capital and strategy into high-margin exports, production-linked incentives, and backward integration to cement its place in the global clean energy supply chain. Yet, this growth story faces turbulence, with legal challenges in the US threatening a key export market.
The Renewable Energy Pivot
While Adani’s empire spans energy, infrastructure, logistics, and more, its incubating businesses—green hydrogen, airports, and roads—are now outpacing established segments in earnings growth. In FY25, these emerging divisions contributed 60% of group EBITDA, with green hydrogen alone delivering nearly half that share.
ANIL’s FY25 EBITDA surged 108% year-on-year to ₹4,776 crore, second only to Adani’s established businesses, thanks largely to solar-driven exports from Mundra Solar PV Ltd (MSPVL). MSPVL’s revenue doubled to ₹6,353 crore, with almost ₹3,000 crore coming from US shipments, propelling profits up fivefold to ₹1,085 crore.
Building the Mundra Green Hydrogen Hub
Adani’s Mundra facility is the cornerstone of its clean energy strategy. Designed for end-to-end integration, it will house:
- 10 GW of solar manufacturing capacity (up from the current 4 GW) through backward integration—silicon wafers and ingots from Mundra Solar Technology feeding solar cell and module production at MSPVL and MSEL.
- 5 GW electrolyser manufacturing, supported by production-linked incentives.
- 2.25 GW of wind power, targeted to double to 4 GW.
- 2.1 million tonnes per annum of green hydrogen capacity for industrial and export markets.
By co-locating manufacturing and consumption, Adani aims to reduce wastage, inventory costs, and turnaround times, achieving cost competitiveness with fossil fuels.
Market Tailwinds and Policy Support
India’s renewable energy ambitions—500 GW by 2030, with 300 GW from solar—align perfectly with Adani’s expansion. Domestic demand could reach 42 GW annually by FY30, and as high as 69 GW if green hydrogen projects scale as projected.
Government support, including import duties on Chinese modules, PLI schemes, and central/state procurement mandates, further boosts the business case. Adani’s integrated port infrastructure at Mundra also gives it a logistical edge for exports.
Legal and Trade Risks
However, growth momentum faces external headwinds. Nasdaq-listed First Solar has accused MSPVL of infringing on its patented solar technology, filing a lawsuit in Delaware. Adani disputes the claim, citing differences in manufacturing processes—particularly the absence of a heat-treatment step central to First Solar’s method.
The stakes are high: US exports are a ₹3,000 crore revenue stream, and any adverse ruling could dent profitability. Trade policy changes in the US—especially if import duties on Indian solar products rise under a new administration—could further pressure margins.
Outlook
Adani’s renewable energy strategy is bold, capital-intensive, and positioned to ride both domestic policy momentum and global decarbonization trends. The integrated Mundra hub could give it an unmatched scale advantage in green hydrogen and solar manufacturing.
Yet, the path ahead is not without challenges. Legal disputes, export dependence, and geopolitical trade shifts will test the group’s ability to sustain growth. Whether this clean energy pivot restores Adani Enterprises’ stock to past highs will depend on how well it navigates these hurdles—while keeping its green hydrogen ambitions firmly on track.
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