Best Green Hydrogen Stocks In India: Profit with Purpose

As India boldly charts its course towards achieving total energy independence by 2047, a remarkable opportunity emerges for the country’s best green hydrogen stocks. Yes, that is a great objective, but an unbounded determination is driving it. And it doesn’t end there; by 2070, India aims to achieve Net Zero emissions. It’s comparable to reaching for the stars and rejecting anything less. India’s target is to make 5 million metric tons of green hydrogen by 2030. If this happens, it could lower around 50 million metric tons of carbon emissions and also save over $12 billion usually spent on bringing in fossil fuels from outside.

In this incredible journey, renewable energy takes center stage. It’s like the beating heart of India’s Energy Transition. Everyone is talking about utilising greener energy sources to power our life, whether they are in the busy city or the peaceful countryside. As we know that Fossil fuels are finite resources, and it is not sustainable to use them up. These resources become more expensive to get and damage the ecology as they become increasingly scarce. In order to achieve this, renewable energy sources including solar, wind, hydropower, geothermal, and tidal power must be widely used.

green hydrogen: The concept

The Definition: A particular type of hydrogen known as “green hydrogen” is produced utilising green energy sources like wind or sunlight. It is referred to as “green” because when it is generated, no pollution is created. Natural gas, a polluting substance that often provides regular hydrogen, is bad for the environment. Green hydrogen can be used to power things like vehicles and industries without polluting the air; it’s sort of like the environmentally friendly version.

Let’s talk about how it is produced – First, you grab some renewable energy sources like sunlight, wind, or water power. Then, you use this clean energy to split water into hydrogen and oxygen through a process called electrolysis. This hydrogen you get is green. It is like the new kid on the block, ready to steal the show. This cool hydrogen molecule is all decked out in green, and it’s all about giving us a different option that’s packed with possibilities.

Think about it: this tiny hydrogen molecule with big dreams. It’s like it’s imagining a future where we’re not stuck relying on those old-fashioned resources that are running out. Instead, it’s dreaming of a world where our industries can do well without spewing out harmful stuff, and our progress doesn’t mess up the planet.

Also read: Exploring The Best Green Energy Stocks For The Future

Future of green Hydrogen Stocks in India: National Green Hydrogen Mission

Green Hydrogen’s Promising Role: Green hydrogen emerges as a pivotal player in transitioning to cleaner energy sources.

Applications Spanning Diverse Sectors: Green hydrogen finds use in renewable energy storage, industrial fuel, eco-friendly transportation, power generation, aviation, and marine transport.

National Green Hydrogen Mission (NGHM): With Union Cabinet approval on January 4, 2022, NGHM is set to reshape India’s energy landscape.

Strategic Objectives of NGHM:

• Lead global Green Hydrogen production and supply.
• Enhance export opportunities and derivatives.
• Cut reliance on imported fossil fuels.
• Foster homegrown manufacturing.
• Encourage investments and business expansion.
• Drive job creation and economic growth.
• Facilitate research and development initiatives.

Anticipated Milestones by 2030:

• 5 million metric tons annual green hydrogen production capacity.
• Addition of 125 gigawatts renewable energy capacity.
• Investments exceeding Rs. 8 lakh crore.
• Generation of 600,000 new job opportunities.
• A substantial Rs. 1 lakh crore reduction in fossil fuel imports.
• Approximately 50 million metric tons annual reduction in greenhouse gas emissions.

Also read: Best Solar Energy Stocks In India: Riding The Renewable Wave

Best Green Hydrogen Stocks In India

The best green hydrogen stocks in India are: Reliance Industries Ltd, GAIL (India) Ltd, Oil & Natural Gas Corporation Ltd, Bharat Petroleum Corporation Ltd, NTPC Ltd, Indian Oil Corporation Ltd, Adani Green Energy Ltd, Larsen & Toubro Ltd and Jindal Stainless Ltd.

Let’s discuss about the stocks to know more about them.

Reliance Industries Ltd

The production of green hydrogen is a field in which Reliance Industries (RIL) is making significant progress. RIL is preparing to build a strong green hydrogen infrastructure in Gujarat with the year 2025 in mind, investing approximately 1.5 trillion on green energy resources.

Their goal? RIL intends to upgrade the engines of Ashok Leyland’s truck fleet before upgrading the fleet of other service providers through the alliance with Ashok Leyland. They’ll utilise green hydrogen to power their substantial fleet of over 45,000 trucks, a move that is consistent with their objective of become carbon-neutral by 2035.

The innovative work of RIL includes producing their first environmentally friendly hydrogen using torrefied biomass and setting a ground-breaking cost target of $1 per kilogram by 2030. With the help of their five giga factories located within the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, they aim to build a self-sustaining green energy ecosystem.

GAIL (India) Ltd

In the Union Budget 2023, Finance Minister Nirmala Sitharaman has laid out a clear goal for boosting green hydrogen production in India. The plan involves GAIL India Limited, a major gas transporter in the country, establishing a groundbreaking Proton Exchange Membrane Electrolyzer in Guna. They anticipate that this innovative setup will commence the production of green hydrogen by the end of 2023.

The ambitious project, situated at the Vijaypur Complex in Guna, aims to generate approximately 4.3 metric tonnes of hydrogen per day with a purity level of about 99.999%. This translates to a significant capacity of around 10 MW. Aligning strongly with the vision of Atmanirbhar Bharat (self-reliant India), they have awarded the contract to a vendor who contributes more than 50% domestic value addition.

GAIL, known for spearheading transformative projects, had earlier initiated the blending of hydrogen into the natural gas system, setting a new precedent. They are already providing this blended mixture to Avantika Gas Limited (AGL), a joint venture company that operates in Indore, Madhya Pradesh.

Adani Green Energy Ltd

Billionaire Gautam Adani’s group is taking charge of the $50 billion green hydrogen project solo, as their French partner, TotalEnergies SE, hit pause on their investment due to fraud allegations. The group is all in, aiming to pour $50 billion into a comprehensive green hydrogen setup in India over a decade. This includes the production of 1 million tonnes of green hydrogen initially, which will later surge to 3 million tonnes.

Adani, who’s already a largest renewable energy producer, is amping it up further. They’re boosting solar module production at Mundra SEZ in Gujarat to a whopping 10 GW per year for this green hydrogen venture.

To keep things efficient, they’re desalinating seawater before pushing it into their electrolyzers to create affordable green hydrogen. A majority of green hydrogen’s cost comes from power expenses. The good news? Renewable energy is running at less than Rs 2.50 per unit (KWh), and Adani’s on a mission to slash it further to make low-cost hydrogen.

Their plans are rock-solid. Adani has completed studies for a powerhouse electrolyzer with a total capacity of up to 15 GW per year for green hydrogen production. They’re even planning to make these electrolyzers in-house at Mundra SEZ, gearing up to establish the green hydrogen facility in western Gujarat and Rajasthan.

Read the full analysis at : Adani Green Energy Fundamental Analysis: From Crisis To Clarity

NTPC Ltd

NTPC, the big player in the power scene, is on a mission to create a mammoth green hydrogen hub along the Andhra Pradesh coast, splashing more than ₹1 lakh crore on the endeavor. Brace yourself for some impressive numbers – they’re gearing up to install a whopping 13.4 gigawatts of solar power alongside a hefty 6.6 gigawatts of pumped storage projects. Word on the street is that NTPC has its sights set on a total renewable power capacity of 20 gigawatts, including storage.

The grand plan? To use all this clean energy to whip up some green hydrogen through a process called electrolysis. And guess where all this magic will happen? Pudimadaka, a coastal village around 50 km from Visakhapatnam, is the chosen spot. The AP Industrial Investment Corporation (APIIC) has kindly handed over 1,200 acres of land for the gig.

NTPC isn’t just playing solo – they’re cozying up to both local and international companies to craft electrolysers and other green energy goodies. They are dividing the land into two sections of 600 acres each, creating both an industrial zone and a hydrogen hub.

But that’s not all – NTPC has already hit a home run. They’ve fired up India’s inaugural green hydrogen blending project in partnership with Gujarat Gas Ltd (GGL). The magic is happening in the piped natural gas network of NTPC Kawas township in Surat.

Also read: Tata Power Fundamental Analysis: Illuminating Opportunities

Larsen & Toubro Ltd

At the A M Naik Heavy Engineering Complex Hazira, L&T has set up a Green Hydrogen Plant equipped with an electrolyser capable of handling 800 kW. It has two types of technologies inside: Alkaline and PEM. The plant gets its power from a solar plant on the roof, which is around 990 kW when it’s sunny, and it also has a Battery Energy Storage System (BESS) of 500 kWh. They use this hydrogen mixed with Natural Gas for their work at the fabrication shops in Hazira. They also make some really clean oxygen from this process that they use for cutting stuff. They’re thinking ahead too – they’re planning to add another 400 kW PEM electrolyser later on, which will make the plant produce double the hydrogen, up to 30 TPA.

Read the full analysis: Larsen & Toubro Fundamental Analysis : Unlocking Value

Now, for Project-2: L&T’s power folks are getting busy. They’re going to set up stuff for the world’s biggest green hydrogen plant. NEOM Green Hydrogen Company is constructing a massive plant.This place called Oxagon in Saudi Arabia is where it’s going to be. This company, NGHC, is like a team with ACWA Power, Air Products, and NEOM all working together. Their idea is to make a gigantic plant that creates green hydrogen on a crazy scale, and then they’ll turn it into green ammonia for everyone around the world to use. The whole project costs a massive $8.4 billion, and it’s got the thumbs-up from 23 banks and money people from all over. And guess what? L&T is going to be the ones who make it and get it going.

Find yourself exploring the Top 20 Highest Share Prices In India: Exploring The Market Titans

best green hydrogen stocks in India- Strategies and Risks

A). Diversification and portfolio allocation in the green energy sector.

B). Assessing risks associated with green hydrogen investments: 1. Regulatory uncertainties, 2. Technological challenges.

C). Long-term outlook and potential rewards of patient investing .

Have a look at the Best Shares To Buy For Long Term In India In 2023

CONCLUSION

In the world of smart investing, seeking out the best green hydrogen stocks in India is like chasing after both profits and a good purpose. These stocks offer a chance to make money while also doing something good for the environment. It’s like a win-win situation. But, like any journey, there are things to watch out for. There might be changes in rules, and the technology might be a bit tricky. And you have to be patient because the real rewards might take time. To make this journey a success, you need to be smart about where you put your money and make sure you’re ready for any challenges that come your way.

Disclaimer

The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.