India's Green Hydrogen Revolution: A New Era in Clean Energy
India's Shift Towards Clean Energy
Countries around the globe, including India, are increasingly moving towards clean energy solutions. The next significant energy transformation in India is expected to stem not only from solar or wind energy but also from green hydrogen. The government has initiated the National Green Hydrogen Mission, aiming to produce 5 million metric tons of green hydrogen by 2030. A budget of ₹19,744 crores has been allocated for this initiative by FY30.
Investment in Hydrogen Production
The government has earmarked ₹2,220 crores for electrolyzer manufacturing and ₹2,239 crores for hydrogen production. Analysts predict that the market for green hydrogen and related technologies could reach approximately ₹70,000 crores. The government is promoting the use of hydrogen in refineries, fertilizers, steel, and heavy industries to reduce pollution, prompting numerous companies to invest rapidly in this sector.
The Benefits of Green Hydrogen
Green hydrogen is a clean and environmentally friendly fuel produced by converting water into hydrogen using advanced technologies like electrolyzers. This hydrogen can later be converted back into electricity through fuel cells. For investors in the stock market, particularly those interested in solar or wind energy stocks, exploring green hydrogen opportunities is advisable. Here are three companies making significant strides in the green hydrogen sector.
1. Sterling and Wilson Renewable Energy
Sterling and Wilson Renewable Energy is a prominent EPC company in the renewable energy sector, focusing on solar, wind, battery storage, and waste-to-energy projects. The company is now increasing its focus on green hydrogen and battery energy storage systems. Reliance Industries holds a 40% stake in SWREL, which could provide substantial benefits. Reliance is also working on a plan to produce 3 million tons of green hydrogen. SWREL has secured India's largest BESS project in Rajasthan and has initiated a solar+BESS pilot project in Jamnagar, Gujarat. The company's revenue is projected to grow by 20% to reach ₹7,548 crores in FY26, although it reported a net loss of ₹296 crores due to extraordinary losses.
2. Advait Energy Transition
Advait Energy Transition specializes in power transmission and telecom network solutions and is rapidly expanding into the green hydrogen sector. The company plans to establish an electrolyzer manufacturing plant in Gujarat, with an initial capacity of 120 MW, which will be expanded to 300 MW. The plant is expected to be operational by 2027. Advait has formed technology partnerships with several foreign companies, including Norway's TECO2030 and Austria's AVL List, aiming for 95% Make in India manufacturing. Once fully operational, the company anticipates revenue of ₹200-300 crores in its first year.
3. INOX India
INOX India manufactures cryogenic equipment designed for storing and transporting gases at extremely low temperatures. Green hydrogen requires storage and transport at -253°C, leading to a surge in demand for cryogenic technology. INOX India has completed its first liquid hydrogen tank project in South Korea and received a significant order from ISRO for an 86-kiloliter liquid hydrogen storage tank. Additionally, the company has partnered with New Zealand's Fabrum to expand its hydrogen business in the Asia-Pacific region. In FY26, INOX India's revenue grew by 20% to ₹1,157 crores, with a net profit increase of 24% to ₹189 crores.