Green hydrogen is a key element in the energy revolution. It is not, however, the next step right away because we must first accelerate the deployment of renewable electricity to decarbonize existing power systems.
Accelerate the electrification of the energy sector to use affordable renewable electricity, and then utilize green hydrogen to decarbonize difficult-to-electrify sectors like heavy industry, shipping, and aviation.
Several of the largest businesses and governments in the world have shown interest in green hydrogen, an environmentally benign gas, as they work to transition to a more sustainable source of energy.
Green hydrogen, one of the world’s cleanest energy sources, is one of the greatest approaches to achieving net zero emissions.
The best green hydrogen stocks in India that are seeing rapid growth have been covered in this blog. Continue reading to learn more about it.
The Indian Green Hydrogen Stocks Industry: A Synopsis
By the year 2070, India aspires to have no emissions. The need for energy and resources in India is anticipated to rise as its economic story unfolds.
Energy consumption has doubled during the last 20 years, and by 2030, it is expected to rise by at least 25%.
Approximately 40%, or over USD 90 billion annually, of India’s basic energy requirements, are imported.
In addition, imports of fossil fuels constitute a major source of energy for sectors like industry and transportation.
This necessitates a technological shift that permits an increase in the share of renewable energy sources in the energy mix while progressively reducing the reliance on fossil fuels.
This is why there is the National Green Hydrogen Mission. By 2030, the Center hopes that its investments would bring in $8 trillion in funding and create more than 6 lakh jobs.
In addition, it is predicted that CO2 emissions will be decreased by almost 50 MMT year by the year 2030.
As part of its Nationally Determined Contribution (NDC), India has promised to reduce the emissions intensity of its GDP by 45% from 2005 levels by 2030 in order to meet the targets of the Paris Agreement.
Top Green Hydrogen Companies Stocks in India
Now that we are more aware of this sector, let’s evaluate the best green hydrogen stocks in India.
| S.No. | Green Hydrogen Companies |
| 1. | Reliance Industries |
| 2. | GAIL (India) |
| 3. | National Thermal Power Corporation (NTPC) |
| 4. | Indian Oil Corporation |
| 5. | Larsen & Toubro |
| 6. | Adani Green Energy |
| 7. | JSW Steel |
| 8. | Jindal Stainless |
| 9. | Oil & Natural Gas Corporation (ONGC) |
| 10. | Bharat Petroleum Corporation |
Things to Take into Account Before Buying in Indian Green Hydrogen Company Stock
Some of the things to think about before buying Green Hydrogen stocks are listed below.
- A Viable Alternative Energy Source
Several experts consider green hydrogen, or hydrogen produced using renewable energy, to be a workable source of sustainable energy.
Yet using only traditional sustainable energy sources like wind and solar won’t be enough to make the switch to a sustainable economy.
This transition needs to be made immediately in order to stop global warming. Hydrogen can be used to plug that opening.
- Substantial investments are being made in the sector.
A lot of money is being invested in green hydrogen. Unfortunately, it is now extremely unprofitable since green hydrogen must be created using other renewable energy sources.
Investors will therefore first have to rely on the impact of the environment they achieve, at least for shares. The financial benefits will materialize over time only. Investors are beginning to accept this.
- Vast Possibilities for Growth
Hydrogen’s promise is demonstrated by the significant investments being made in it, notably those made by Bill Gates, as well as by the technological possibilities for energy production and storage.
The $1 trillion US infrastructure plan is also expected to enhance R&D spending as well as tax and other incentives for hydrogen, according to analysts.
As a result, by 2030, the cost of creating green hydrogen, which is currently $5 per kilogram, should be $1. Reduced prices will further promote the use of hydrogen fuel cells.
- Profits Are Hard to Predict
As shares by their very nature do not provide a fixed source of income, share prices, or the price at which an investor may buy or sell a share, constantly change on the stock market.
The return on investment from shares is ultimately determined by the profitability of the underlying company, which is impacted by stock market sentiment.
Shareholders are entitled to a share of the profits, and the price of a share reflects all prospective earnings.
Earnings from hydrogen technology won’t be realized for some time. Shares are mostly a promise for the future because it is hard to forecast these future benefits.
Best Green Hydrogen Stocks in India: An Overview
1) Reliance Industries
To achieve its net zero emissions target by the year 2035, Limited intends to invest over $10 billion in India’s development of a complete ecosystem for new energy and materials.
The company’s goal is to develop the Dhirubhai Ambani Green energy Giga complex, which would be situated on 5,000 acres of land close to Jamnagar.
This will be Reliance Industries’ new path toward a sustainable ecology.
Also, they have partnered with a number of eco-friendly businesses that will support them in their attempt. Among many others, these companies include REC Solar Holding, Lithium Werks, and Faradion.
2) GAIL (India)
The Guna region of Madhya Pradesh is where GAIL plans to build the largest green hydrogen plant in India by the end of 2023.
They intend to create a PEM-based project that would make it possible to produce 4.3 tonnes (10 Megawatt capacity) of green hydrogen per day, which would then be combined with natural gas and given to industry.
This 10 MW output is the largest energy producer in the country. This fuel may also be offered for sale to businesses that make fertilizer.
3) National Thermal Power Corporation Limited (NTPC)
By producing green hydrogen, the state-owned energy company NTPC Ltd has decided to diversify into some eco-friendly industries.
A 240kW solid oxide electrolyzer will be used in a floating solar array to make hydrogen.
4) Indian Oil Corporation
Indian Oil Corporation (IOC) Limited is competing to manufacture green hydrogen and is not far behind.
They have made the decision to switch to hydrogen fuel for at least a tenth of their fossil fuel consumption. They have decided to construct refineries at Mathura and Panipat.
By 2025, they want to produce 5 GW of renewable energy.
5) Larsen & Toubro
In Gujarat’s Hazira area, L&T Limited has decided to construct a hydrogen factory that is ecologically beneficial.
There, they want to produce 45 kg of green hydrogen per day. The energy required to power this production area will be supplied by the 990kW DC capacity and the 500kW battery energy storage system. As part of the process, natural gas will receive a 15% hydrogen addition.
They aim to become carbon and water neutral by 2025 and 2030, respectively.
6) Adani Green Energy
Adani New Industries Ltd is the most well-known corporation in India’s energy and electrical sector. They have made the decision to invest more than $50 billion over the next ten years in order to increase their supply of green hydrogen.
For this, they have teamed up with the French business TotalEnergies. This new business aims to produce 1MT of renewable hydrogen every year by 2030.
7) JSW Steel
JSW Energy, a division of JSW Steel Company, has partnered with an Australian company to work on the potential project.
According to JSW Steel, there may have been 10,000 crores of rupees invested in renewable energy.
Although the company hasn’t given many details, we anticipate seeing them expand in the green sector.
8) Jindal Stainless
To create green hydrogen production facilities and increase the capacity for producing green hydrogen, Jindal Stainless Ltd has partnered with Hygenco India Private Ltd.
They want to cut the nation’s carbon emissions by 2,700 MT each year. They will be the first stainless steel company in India to use green hydrogen as a result of this effort.
9) Oil & Natural Gas Corporation (ONGC)
Oil and Natural Gas Company Limited and M/s Greenko ZeroC Private Limited (Greenko) agreed to work together and look into ecologically acceptable ways to produce green ammonia and other derivatives of green hydrogen when they signed a memorandum of understanding (MoU) in July 2022.
Throughout the duration of this Memorandum of Understanding, Greenko, an Indian supplier of renewable energy, will assist ONGC’s green drive.
This deal supports the National Hydrogen Mission, which aims to make India a center for green hydrogen on a worldwide scale.
10) Bharat Petroleum Corporation
In order to create green hydrogen, BPCL intends to construct a 5 Megawatt electrolyzer employing a phased installation method in Ahmedabad and Aurangabad.
This green hydrogen will be blended with natural gas using the company’s existing steel pipes. This gas will be used for industrial, domestic, and commercial purposes.
The company advertised for bidders for the project because we think that the important bidders are companies that produce water electrolyzers.
Conclusion
In conclusion, hydrogen is the element that is most common in the universe. With only one proton and one electron, it is also the most basic, which explains why hydrogen, which has long been regarded as the fuel of the future, is the most common.
With other countries joining the US and the EU in the promise to decrease greenhouse gas emissions by 30% by 2030, this future is closer than it would first appear.
Green hydrogen will be important as an emission-free fuel and a green energy source to decarbonize other sectors.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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