Best Green Hydrogen Stocks in India
Posted by : Ketan Sonalkar | Tue Apr 16 2024
Green Hydrogen Stocks in India
There was a time in the country when transportation and other activities relied on bullock carts and non-fuel modes. With urbanization and innovation, we transitioned to faster modes, but this came with consequences like pollution and global warming.
Today, we find ourselves at a crossroads, where we desire the old-new methods back, or we can say, old methods with modern innovations. The cycle repeats itself.
What is Green Hydrogen?
Green hydrogen is produced through the electrolysis of water using renewable energy sources like solar or wind power. With various renewable energy sources like wind, solar, and electric vehicles, the concept of green hydrogen is gaining momentum. This sector has tremendous potential for the future, as it offers a clean and sustainable energy solution.
The world is increasingly focused on green hydrogen, and why is that? because it offers a cleaner and more sustainable alternative to grey hydrogen. India is currently reliant on grey hydrogen, which is derived from fossil fuels Like natural gas, this process releases CO2. while on the other hand, green hydrogen is produced with the process of electrolysis, using renewable energy sources such as solar, wind, or hydroelectric power with no carbon emissions.
What are Green Hydrogen Stocks?
The companies are extremely focused on producing and using green hydrogen as a sustainable energy option for the world. The shares of these companies are called green hydrogen stocks and offer a huge earning potential for the future. As more and more people move towards using cleaner energy solutions, the green hydrogen stocks in India are becoming increasingly popular.
Why Invest in Green Hydrogen Stocks in India?
India is placing a greater emphasis on sustainable energy. The government’s backing of environmental programs is increasing, as seen in the interim budget of 2024, which provides a significant boost to green hydrogen initiatives. The budget allocated Rs 600 crore to the National Green Hydrogen Mission, representing a 102% increase compared to the previous budget and a 500% hike from the revised estimate for 2023-24.his development bodes well for energy stocks in India.
The government’s mission for the National Green Hydrogen aims to establish India as a global leader in green hydrogen manufacturing by achieving a production capacity of 5 million metric tonnes per year by 2030. This increased budgetary focus on green hydrogen signifies the government’s commitment to a clean energy transition and economic growth in this sector, making it a promising sector for investing in green hydrogen stocks in India.
Trending Top Green Hydrogen Stocks in India:
As India emerges to meet global demand for clean energy, several companies are at the forefront of green hydrogen production:
| S.no | Stock Name | Market Capitalization(in Cr) | P/E Ratio | 5 Years Returns (%) |
| 1. | Reliance Industries | 19,84,432.1 | 28.36 | 113.52 |
| 2. | Adani Green Energy Limited | 2,87,636.5 | 197.28 | 3925.89 |
| 3. | Larsen & Toubro | 4,94,997.55 | 39.13 | 160.41 |
| 4. | NTPC limited | 3,50,389 | 19.47 | 165.42 |
| 5. | Indian Oil Corporation | 2,35,118.6 | 5.02 | 62.40 |
| 6. | Gail(India) Limited | 1,33,967.66 | 16.61 | 16.98 |
| 7. | Bharat Heavy Electricals Ltd | 89,280 | NA | 238.92 |
| 8. | Jsw energy | 1,06,500.27 | 64.8 | 730.41 |
| 9. | Tata Power | 1,37,878.9 | 38.53 | 510.06 |
| 10. | Acme solar holdings | NA | NA | NA |
As per a report in the Economic Times earlier, the Mukesh Ambani-led company is investing $10 billion in capex for building its new energy ecosystem. It has tied up with original equipment manufacturers (OEMs) to supply green hydrogen. Reliance is all set and committed to promoting sustainable development and combating the climate crisis to preserve the planet.
Adani has promised to make India an energy-self-reliant nation. The Adani Group is on track to become the world’s largest producer of green hydrogen. Adani Green Energy Limited is on track to becoming the world’s largest renewable energy company by 2030. The chairman of the company announced that 75% of the Group’s planned capital expenditure will be in green businesses, and the company will also invest $20 billion in renewables over the next decade.
As one of the world’s leading companies serving the energy sector, L&T is positioned to leverage its expertise and emerge as a Green Energy major. The Company’s Green Energy Vision is centered on three business pillars encompassing the Green Energy Value Chain – Development, Manufacturing, and EPC. making it a good choice for investing in Green Hydrogen Penny Stocks
NTPC, with its aim to lead the energy transition in India, wants to play a key role in the implementation of various aspects of the green hydrogen economy and meet the government of India’s commitment as a part of Paris climate records. To lower the carbon footprint, NTPC’s initiative in the project was the deployment of 10 Fuel cell electric vehicles(FCEV)in intra and inter-city applications.
IOCL aims to set up units at all of its refineries as part of a Rs 2.4 trillion green transition plan to achieve net zero carbon emission status by 2046 s reported by Business Standard IOCL is all set to make India a self-reliant nation and setting bards for best hydrogen stocks in India.
Keeping up with global energy trends and reducing its environmental effects, GAIL is extending its portfolio to include green hydrogen as a leader in the natural gas industry. On May 12, 2022, GAIL awarded a contract to set up one of India’s largest PEM-based Green Hydrogen project
The Company’s objective is to bolster India’s self-sufficiency and resilience. In a recent report, BHEL announced its venture in green hydrogen plans. The company has signed an MOU with Greenstat Hydrogen India pvt to explore opportunities within the realm of green hydrogen and its derivatives across the hydrogen value chain.
JSW with its expertise in power generation is integrating green hydrogen as a part of its development into renewable energy to become a major player in the green energy revolution. JSW Energy aims to play a significant role in the growth of green hydrogen as a clean and sustainable energy source in India.
TATA POWER IS actively contributing to the development of green hydrogen in India. Tata Power to double its Capex this financial year to Rs 12,000 cr; well positioned to lead the green energy transition
- Acme solar holdings
Partnering with various governments and stakeholders to develop projects in Oman, India, Egypt, Australia, and Chile.GHC aims to become a leading green energy provider in the world by 2030 and produce 10 million tons/year of green ammonia and hydrogen.
Factors to Consider Before Investing in Green Hydrogen Companies:
- Always look for the companies that operate in the regions where the government fully supports the green hydrogen projects. For example, companies like Green Group and ReNew Power have capitalized on India’s growing renewable energy market which includes the potential for green hydrogen.
- Companies that have efficient and cost-effective technology to perform electrolysis in green hydrogen projects are more successful and become the best hydrogen stocks in India. For example, Indian Oil Corporation is working on innovative technologies for green hydrogen production, such as using solar power for electrolysis
- Companies that can produce green hydrogen at a much lower cost. Then traditional methods will always have a competitive advantage in the market. For example, Reliance Industry Ltd as always is exploring ways to reduce the cost of green hydrogen production through its subsidiary which relies reliance new energy solar
- One is good, but two is better! When we collaborate, we not only benefit from technology, resources, and expertise but also from shared resources and expertise. Companies with strong partnerships and collaborations are well-positioned to be among the Green Hydrogen Penny Stocks. For instance, Siemens Energy has partnered with various companies and research institutions to develop green hydrogen projects.
- Of course, talking about green hydrogen is all about talking about the environment and preserving it for future generations. Therefore, companies with a strong commitment to sustainability and reducing carbon emissions are particularly attractive to investors. These companies are not only mindful of the future but also align with the values of upcoming generations. For example, Hero Future Energy is dedicated to reducing carbon emissions and improving the living environment for future generations.
Conclusion
“Investing in green hydrogen stocks isn’t just about financial returns; it’s an investment in a cleaner, more sustainable future for generations to come.”
To conclude, the rise of green hydrogen stocks indeed shows a rising opportunity for investors who are seeking sustainable and profitable ventures. With the government’s increasing focus on clean energy and initiatives like the National Green Hydrogen Mission, the sector is poised for rapid growth.
Top companies are at the forefront, making them potentially beneficial investments in green hydrogen stocks. As India moves towards a cleaner and more sustainable future, investing in these companies could prove to be beneficial, both financially and environmentally.
Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. For more details/disclosures, visit at www.univest.in/univest mobile application.
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