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Best Green Hydrogen Stocks to Invest In India 2024
Table of Contents
Introduction
You are well aware of India's Net Carbon Zero Emission by 2070 mission. To achieve this, we will have to bring such technology in which there is no carbon emission. So now such a method is available, isn't it right? We are working on a very aggressive technology for zero carbon emission. The world is focusing on and its name is Green Hydrogen Technology.
What is Green Hydrogen?
Green hydrogen is produced by breaking water molecules. The formula of water is h2o which you must have learned in school. Hydrogen is separated from water through electrolysis in an electrolyzer. This hydrogen is then fueled which is a clean fuel. Renewable energy like solar energy, wind energy and hydro energy is used for electrolysis.
Role in Zero Carbon Emission
Till now fossil fuel i.e. coal oil and natural gas is being used. Petroleum refining is being done on a large scale in sectors like aviation and shipping, which generate huge amounts of carbon emissions, hence green hydrogen has the potential to replace fossil fuels, hence the government has set a target of 5 million metric tons of green hydrogen every year by 2030. The government has also allocated a budget of Rs 600 crore for such a huge quantity of production that can replace fossil fuel.
Stocks Related to Green Hydrogen
Now let's talk about those shares which are related to green hydrogen. But before going there, let's understand its components. As I mentioned earlier, electrolyzer is used in green hydrogen production. Electrolyzer gets energy from renewable energy sources. Therefore, renewable energy and electrolyzer are two important components in green hydrogen production.
Electrolyzer Manufacturers in India
If we talk about electrolyzer manufacturing in India, then there are several companies that have received government incentives in this field. Some of these companies are listed below:
- Reliance
- Advit Infratech
- Jindal India
- LNT Electrolyzer
Reliance
Reliance is rapidly moving towards net zero carbon. The company has invested Rs 1 crore for its new energy business, which includes Solar, Wind, Green Hydrogen, Fuel Cell and Battery. Reliance has also received a subsidy of Rs 40 million per year and is planning to achieve 1 MW capacity annually. Additionally, the company is investing Rs 60,000 crore for manufacturing new energy components, including electrolyzer.
Advit Infratech
Advit Infratech has also received government incentives for electrolyzer manufacturing. The company has taken up a 100 MW project with Rajesh Power Service Pvt. Ltd., which is valued at Rs. 140 crore. Advit Infratech is actively involved in the green hydrogen sector.
LNT Electrolyzer
LNT Electrolyzer Limited, a subsidiary of LNT, is working in the electrolyzer manufacturing business. The company has received an annual incentive of Rs 93 crore and has plans to produce at 63 MW capacity per year. LNT Electrolyzer has also planned a capex of Rs 500 to 600 crore for electrolyzer manufacturing.
Supportive Companies
In addition to the electrolyzer manufacturers, there are also companies that play a supportive role in green hydrogen production. One such company is Gujarat Fluorochemical. This company develops proton exchange membranes, which are essential for the functioning of the electrolyzer. Gujarat Fluorochemical is considered a proxy player in the green hydrogen sector.
Conclusion
Green hydrogen has the potential to revolutionize the clean energy sector and help achieve India's Net Carbon Zero Emission target. By replacing fossil fuels with green hydrogen, we can significantly reduce carbon emissions and mitigate the impact of climate change. The government's focus on green hydrogen production is evident from the allocated budget and incentives provided to electrolyzer manufacturers. However, it is important to note that investing in this sector requires careful consideration and analysis of various factors. As the demand for green hydrogen grows, companies involved in electrolyzer manufacturing and supportive roles are likely to benefit. Stay informed, make informed decisions, and contribute to a greener and more sustainable future.
Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
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Frequently Asked Questions
The Indian green hydrogen sector is still young, making it difficult to pinpoint a single "best" stock. Here's what to consider for your research:
Electrolyzer Manufacturers:
- Leaders: Reliance, LNT Electrolyzer - Established players with government backing and ambitious production plans.
- Up-and-comers: Advit Infratech - Involved in a notable green hydrogen project.
Proxy Plays:
- Gujarat Fluorochemical: Develops key components for electrolyzers.
Factors to Consider:
- Company's Green Hydrogen Focus: Look for companies with dedicated green hydrogen projects and investments.
- Government Incentives: Companies receiving government support might benefit in the long run.
- Track Record & Reputation: Choose established players with a proven track record in relevant fields.
Remember: Investing involves risk. Conduct thorough research before making any decisions.
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India aims to achieve Net Zero Carbon Emissions by 2070.
Green hydrogen, a clean fuel produced from water using renewable energy, can replace fossil fuels in various sectors, significantly reducing carbon emissions.
The Indian government has set an ambitious target of producing 5 million metric tons of green hydrogen annually by 2030.
