Shares of state-run GAIL (Gas Authority of India Ltd) surged 1.43% to Rs 369.25 on Tuesday morning, a day after it signed a memorandum of understanding with United States-based Bloom Energy to use a technology that will generate electricity with lower emission levels. Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday said that this technology, which uses natural gas-based fuel, will provide cleaner power in the urban areas.
According to the pact, GAIL (India) will use the solid oxide fuel cell technology of Bloom Energy Servers that converts fuel into electricity by using natural gas, , reported PTI. The electricity thus generated reduces emissions of greenhouse gases and harmful air pollutants. The clean energy technology is currently being used by several companies in consumer goods, information technologu, telecom, retailing and e-commerce sectors.
With the MoU, Bloom Energy will use GAIL’s resource of natural gas and integrated gas supply networks for its projects. Among Bloom Energy’s global clients are Walmart, Coca Cola, Johnson & Johnson, eBay, Fedex and Intel in India, reported The Times of India. GAIL again is India's largest natural gas company with a market share of over 80% in natural gas transmission. The government holds a 56.11% stake in the company.
According to Business Standard, the tie-up will allow Indian consumers to experience bundled and reliable service. NITI Aayog Chief Executive Officer Amitabh Kant said it will bring about a "transformational change" in electricity generation.
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