Hydrogen is the newest term when it comes to satisfying the world's energy demands. It may be created from a range of resources, including natural gas, biomass, and renewable energy sources such as the sun and wind. It may be utilized in automobiles, homes, portable power, and a variety of other applications.
Since June 2021, India has seen an extraordinary surge in fuel costs. This has reintroduced the topic of energy security to the conversation. The fundamental focus of the conversation has been rising fuel consumption and reliance on imported crude oil for local requirements.
Indian companies have declared ambitious intentions to adopt hydrogen as a fuel as the country converts to carbon-free fuel, ranging from Mukesh Ambani's and Gautam Adani's businesses to state-owned oil refiner IndianOil and power generator NTPC. These are some of the top companies that are going to invest in renewable energy and green hydrogen in 2022 or the near future.
RIL's energy business is about to undergo a change that will allow it to provide decarbonization options such as hydrogen infrastructure, integrated solar PV, and grid batteries.
The company recently announced its plans to become a net carbon-zero firm by 2035. The conglomerate said it will invest INR 750 Bn over the next three years in renewable energy.
State-owned GAIL (India) also has ambitious plans concerning green hydrogen. The PSU plans to build India's largest green hydrogen plant. The company is testing the mix percentage before it scales it up. The hydrogen that GAIL plans to produce can be sold to fertilizer units.
NTPC (National Thermal Power Corporation Limited)
The state-owned company is diversifying its portfolio to include renewable energy, energy storage, energy distribution, and electric car charging. NTPC intends to commercialize the production of green hydrogen. As a result of the economies of scale, this is projected to decrease in the future. In addition, NTPC has promoted the use of green hydrogen-based solutions in industries such as transportation, energy, chemical, fertilizer, steel, and others.
Indian Oil Corp.
Indian Oil Corp is one of the PSU that plans to tap into the green hydrogen opportunity. It also plans to come up with a stand-alone green hydrogen manufacturing unit in Kochi. Indian Oil has set a target of converting at least 10% of its hydrogen consumption at refineries to green hydrogen soon.
India OIl Corp. is India's one of the biggest oil an gas provider with a strong hold on the domestic market.
Larsen and Toubro (L&T)
Engineering major, L&T, also plans to into the green hydrogen space. The company has announced that it will set up a green hydrogen plant at its Hazira complex. The company plans to spend between INR 10-50 Bn on its green initiatives, spread over several years.
Is it a good idea to add Green Hydrogen companies to your investment portfolio?
India's current energy import bill is over USD 12 Bn (INR 12 Bn) a year. India has also proposed a draught regulation requiring green hydrogen to account for 10% of refiners' total hydrogen demand by 2023-23. India wants to boost its non-fossil energy capacity to 500 GW by 2030 and use renewable energy to cover 50% of its energy needs.
The Views and Investment suggestions expressed by the author or employees of Greynium Informations Technologies, should not be construed as investment advice to buy or sell stocks mentioned above.
Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in. We do not qualify as financial advisors and any information herein is not investment advice. All readers and investors should note that neither Greynium nor the author of the article, would be responsible for any decision taken based on the article. Please consult a professional advisor for an investment decision. Investment is subject to market risk.