Since last two to three years Green Hydrogen and Net zero emission has created so much buzz around us and many countries and even companies have declared their plans to go towards complete net zero emission in upcoming years and in respect to which GOI declared Green Hydrogen Policy in 2022 and recently the Union Minister Anurag Thakur also announced outlay of Rs 19,744 crore along with the spend Rs 17,490 crore to encourage manufacture of electrolyzer and production of green hydrogen under National Green Hydrogen Mission to help India become energy sufficient by 2047 and the government also expect investments of Rs 8 lakh crore under this Mission by 2030 and also plans to make Rs 1 lakh crore worth of import savings by 2030. In December 2021, we have already provided list of 5 companies through our article Green Stocks who were the early movers in these industries i.e., RIL, GAIL, NTPC, IOCL and L&T and since then those companies have also increased their investments for further increasing their capabilities.
Many new companies have also entered into this industry by announcing different programs and developments to support the transition from Petrol and Diesel to Hydrogen as a fuel so, the new List of Green stocks includes:
- Cummins
Cummins Inc.(parent company of Cummins India) has acquired fuel cell systems provider Hydrogenics Corporation) for US$15.00 per share. The company’s engines powered the world's first fleet of hydrogen trains in Bremervörde, Lower Saxony, Germany. The Alstom Coradia iLint trains are outfitted with Cummins fuel cell systems and will run on the world’s first 100%-hydrogen train route in passenger operation. Recently the company has also signed MOU with Tata Motors to provide Hydrogen powered engines to the company. Cummins has already made its strong presence in future technology of alternative fuels that is Hydrogen powered vehicles powered by Hydrogen Fuel cell used engines through its parent company i.e. Cummins Inc. - Siemens
Siemens (Company’s German subsidiary) opened a green hydrogen generation plant described which is one of the largest in Germany, will produce 1,350 tons of hydrogen every year. the facility would use wind and solar power from the Wunsiedel Energy Park in Upper Franconia. The hydrogen will be produced using an 8.75-megawatt electrolyzer. Siemens Energy and Air Liquide’s formed JV to Produce 3 GW of Green Hydrogen Electrolyzers annually by 2025. Recently the company signed a Memorandum of Understanding (MoU) with NTPC for feasibility to demonstrate hydrogen co-firing blended with natural gas in Siemens V94.2 gas turbines installed at NTPC Faridabad gas power plant. - Tata Motors
Tata Motors has taken significant steps & has been leading in the development of Hydrogen-powered vehicles. It had been working on a fuel cell technology demonstrator vehicle project, conceptualized in association with the Government of India as part of the Technology Development and Demonstration Program (TDDP). It has also collaborated with the ISRO during its development for system integration, testing, and certification. The company is betting big on three technologies — battery electric, hydrogen fuel cell, and hydrogen internal combustion engine (ICE) — to achieve its target of of achieving net-zero emissions by 2045. It has also showcased 14 new products in the commercial vehicle segment across natural gas, battery electric, fuel-agnostic, hydrogen cell electric, and hydrogen cell ICE categories at Auto Expo 2023. It showcased early prototype of a Hydrogen Fuel Cell powered bus and demonstrated operation on Indian roads in Auto EXPO 2023 and Bagged contract for 15 Hydrogen Fuel Cell buses from Indian Oil Corporation, to be delivered within the next two years. It has joined hands with Cummins Inc. to offer solutions in the hydrogen-powered commercial vehicle space. - Adani Enterprises
Adani Enterprises and energy supermajor TotalEnergies of France, have entered into a new partnership to jointly create the world’s largest green hydrogen ecosystem. In this strategic alliance, TotalEnergies will acquire 25% minority interest in Adani New Industries Ltd (ANIL) from Adani Enterprises Ltd (AEL). ANIL will invest over USD 50 billion over the next 10 years in green hydrogen and associated ecosystem. In the initial phase, ANIL will develop green hydrogen production capacity of 1 million ton per annum before 2030. - MEIL
Drillmec, a Piacenza-based company in the Oil and Gas sector, part of Indian infrastructure giant MEIL group has announced the investment plan for over 35 million euros in energy transition. The company, jointly with the Indian parent company MEIL, will produce hydrogen through the most advanced technologies available such as electrolysis, pyrolysis, and the design and construction of CO2 capture and storage systems. Drillmec has also launched the company Idrogena, a start-up dedicated to the development and industrial production of a pyrolytic converter for the production of ultra-clean hydrogen. - Engineers India
Bharat Oman Refineries (BORL) has selected Engineers India for providing Consultancy Services for Electrolyser based Green Hydrogen Plant at Bina Refinery. It shall be one of the largest Green Hydrogen Plant in the country with a capacity of approx. 8.5 TPD (20 MW). The company is also looking to strengthen its hydrocarbon business as well as transition into renewable energy segment. Company is working with GAIL as natural gas pipeline that is spread across the country, which is more than 15,000 gas pipelines, and in it what percentage of hydrogen should be mixed in it so that it can provide an impetus in the gas market. - ReNew
ReNew Power has signed a preliminary agreement with the Egyptian government to invest as much as $8 billion (over Rs 63,000 crore) to produce green hydrogen in the African country. ReNew will produce 220,000 tonnes of the clean fuel annually in Egypt in the coming years and the company plans to build the project in the Suez Canal Economic Zone. - ONGC
Oil and Natural Gas Corporation (ONGC) has signed a Memorandum of Understanding (MoU) with renewable energy company Greenko ZeroC to make green hydrogen and jointly pursue opportunities in renewables, and other derivatives of green hydrogen. - RIL
RIL’s New Energy business will be an optimal mix of reliable, clean and affordable energy solutions with hydrogen, wind, solar, fuel cells, and batteries. RIL is investing Rs 60,000 crores to construct world-scale, state-of-the-art facilities to manufacture and integrate critical components of the New Energy ecosystem such as Fully integrated solar photovoltaic manufacturing complex, Advanced Energy Storage systems for integrated cells, battery packs, control manufacturing, Electrolyser manufacturing facility, Mobility solutions and development for EV and FCEV, Power electronics and semiconductor development, Basic raw material and auxiliary materials manufacturing and Research and Development facilities for all New Energy Technologies. They are also investing Rs 15,000 crores in value-chain, partnerships, and future technologies, including upstream and downstream industries, to create a fully integrated, end-to-end renewable energy ecosystem through its subsidiary RNEl. RNEL has acquired leading global sodium-ion battery technology company Faradion Ltd. for an enterprise value of GBP 100 million. RNEL has acquired assets of LFP batteries provider Lithium Werks for USD 61 million which is a leading provider of cobalt free and high-performance Lithium Iron Phosphate (“LFP”) batteries. It has also acquired REC Solar Holdings AS (REC Group), one of the world’s leading solar cells/panels and polysilicon manufacturing companies, for an enterprise value of USD 771 million. Company has acquired a majority stake in skyTran Inc, a futuristic rapid transit system and with this investment the company wants to bring to India high-speed efficient and economical intra and inter-city connectivity through a ‘Transportation-as-a-Service’ platform. Reliance has invested USD 32 million to acquire a majority stake in SenseHawk, an early-stage California-based developer of software-based management tools for the solar energy generation industry. It has also partnered with many global companies such as Ambri Inc., Sterling and Wilson solar, Nexwafe, STIESDAL A/S and Caelux Corp. to co-create New Energy solutions for India and the world. Reliance is also investing Rs 5.95 lakh crore in Green Energy and other projects in Gujarat over a span of 10 to 15 years for setting up a 100 GW Renewable Energy Power Plant and with Green Hydrogen Eco-System development. - NTPC
NTPC has inked a pact with Gujarat Gas Ltd in an initiative to blend Green Hydrogen with piped natural gas (PNG) supplied by Gujarat Gas Ltd in its NTPC Kawas township.Green hydrogen will be produced by using electricity from the existing 1 MW floating solar project of NTPC Kawas. This will be blended with PNG in a pre-determined proportion of 5% and will be used for cooking applications in its township. The NTPC group also plans to achieve 60 GW of renewable energy (RE) in a decade and is executing several pilot projects in the green hydrogen space. - GAIL
Gail recently kicked off the nation's first project for blending hydrogen into the natural gas system. Hydrogen-blended natural gas is being supplied to one of the company's joint ventures - Avantika Gas Ltd (AGL) which retails CNG to automobiles and piped cooking gas to households in Indore, Madhya Pradesh. It has also awarded a contract to Cummins in collaboration with Tecnimont for setting up one of the largest Proton Exchange Membrane (PEM) electrolyzers in the country to produce green hydrogen by the end of 2023. It will produce around 4.3 tonnes of hydrogen per day (about 10 megawatts capacity) with a purity of about 99.99 %. - L&T
L&T has signed an agreement with the IIT-Bombay to jointly pursue research and development work in the Green Hydrogen value chain.It has also partnered with ReNew to jointly develop, own, execute and operate green hydrogen projects in India. It commissioned its first green hydrogen plant at its complex in Hazira and is in talks with about a dozen companies including steel, cement and refineries companies, to help them set up green hydrogen plants. It signed MoU with the Norway-based H2Carrier (H2C) to jointly develop floating green ammonia projects for industrial-scale applications with an aim to decarbonize the global economy. H2C plans to build the P2XFloater™ hull at yards in Asia and L&T will design and fabricate the topside process and utility modules to produce Green Hydrogen & Green Ammonia, including Electrolysers, Nitrogen Generation plant, and Ammonia Synthesis unit. It has also signed EPC contract for NEOM green hydrogen project. - IOC
IOC is venturing into green hydrogen production and is targeting 5 % of hydrogen produced by it as green hydrogen by 2027-28 and 10 % by 2029-30 for which it is setting up green hydrogen plants at its Panipat and Mathura refineries. Indian Oil Corp, Larsen & Toubro ReNew Power have formed a joint venture to develop the green hydrogen sector to help India cut its carbon emissions. It has also formed a joint venture with L&T for manufacturing electrolysers, used for the production of green hydrogen. Its subsidiary Chennai petroleum corporation invites bids to Set Up Green Hydrogen Unit at its Chennai Refinery with a production capacity of 1KTPA to 5KTPA.
Recently, Union Railways Minister Ashwini Vaishnaw has announced that India is developing hydrogen-powered trains and they will be ready in 2023. Considering many such steps taken by GOI to boost Green Hydrogen and aggressive participation of companies in it, stocks of above mentioned companies are recommended for a long-term period to get best returns in future.
​Het Zaveri
(Disclosures : At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
Disclaimer : Investing in any equity is risky. Our recommendations are based on reliable & authenticated sources believed to be true & correct, and also is technical analysis based on & conceived from charts. Investors should take their own decisions. We assume no responsibility for any transactions undertaken by them. The author won't be liable or responsible for any legal or financial losses made by anybody.)