Best Green Hydrogen Stocks in India for 2023 – What is Green Hydrogen? | Future of Green Hydrogen Stocks
As we are heading towards New Year 2023, so let’s promise to ourselves to accomplish our hopes which remain unfulfilled in the last year. So we need to keep the rigor alive and hope for a better future by taking the right financial decision in the year 2023. In continuation to the running series, today we will discuss the Best Green Hydrogen Stocks in India for 2023.
Before we discuss the best green hydrogen stocks let’s understand what green hydrogen stocks are and what future these stocks hold. Let’s get into it:
What is Green Hydrogen?
2023 is around the corner so to kick start this year you should indulge in stocks that can boost the sustainability of our environment. Therefore, it can be achieved through Green Hydrogen. As the name suggests, this hydrogen generation does not have any negative impact on our environment so its refer to as Green Hydrogen. Green Hydrogen is a form of renewable energy and becoming a key component in bringing the transition from producing fuel-based hydrogen to clean hydrogen. This play a pivotal role in decreasing the footprints of carbon emission on our globe.
This green hydrogen is produced by splitting water molecules via electrolysis into Hydrogen and Oxygen components. And this green hydrogen is considered a great replacement for grey or blue hydrogen which is harmful to our environment.
Now we know how essential is this green hydrogen to get a sustainable future of living being on earth. This leads to carbon neutrality and stops climate change. It is also sometimes referred to as clean energy as its only waste is water. Produced using natural resources such as wind power or solar energy. It can be stored by compressing in Adhoc tanks for a long period. As it’s very light in nature hence can be easily transportable from one place to another as compared to lithium batteries
Future of Green Hydrogen Stocks in India
The future of green hydrogen is very promising not only across the Globe but specifically in India as well. At the Glasgow COP26, India pledged to become net zero by 2070 and to increase its nonfossil fuel energy capacity to 500 GW by 2030.
This step taken by the Government of India is quite aggressive and will address climate change and it will help Indian Industries to become more self-reliant for energy needs. This step will definitely bring a change in the industry which are using grey hydrogen. To support the pledge by the Indian government, need to be strengthened by taking baby steps in refinery, fertilizers, cement, iron & steel followed by chemical sectors. These sectors are the first enablers to create differentiation.
Followed by the companies that will be linked indirectly in building the infrastructure of transmission and distribution of green hydrogen. The Indian Hydrogen market was valued at $50 million in 2017 and is expected to grow to $81 million by 2025. So specifically these industries need to adopt green hydrogen in their business growth plan to achieve sustainability and capital efficiency in the long run.
Best Green Hydrogen Stocks in 2023
Now we know what is green hydrogen and what future it holds in India. Which are the companies that will be embedding this green hydrogen in their business model will be our choice for green hydrogen stocks. Here is the list of companies that have already started investing in green hydrogen projects for making the right transition:
The company which is topping our chart is Reliance Industries. It has announced its plan to become carbon neutral by 2035. And is planning to invest Rs.750 billion in the next three years in renewal energy projects. Under the Dhirubhai Ambani Green Energy Giga Complan plan, the company will manufacture solar cells, modules, battery units, and an electrolyzer plant worth 60000 Crore to produce green hydrogen. Within the next 10 years, its plans to generate green hydrogen at $1 per kg.
Larsen & Turbo Limited:
The next stock on our list is Larsen & Turbo which forays into engineering, construction, manufacturing, and technology. L&T too has taken steps by signing a pact with HydrogenPro AS of Norway to set up an electrolysis plant In India. Also signed a contract with Renew Power to develop green hydrogen projects across the country and planning to set up a plant in Hazira Complex. They too have taken a goal of zero emissions by 2040. And going to invest 50 billion in green renewable energy projects in the coming year.
NTPC is a public sector company engaged in the generation and sale of electricity. In 2021, they issues a tender for India’s first green hydrogen fuelling station. Also announced is to set up of a solar power plant of 4750MW at Rann of Kutch. At one of their unit, they run tests to generate hydrogen which will be costing $3kg.
Summarised Version of Green Hydrogen Stocks in India
The other stock you can consider is GAIL, IOCL, and ADANIGREEN. Let’s take have brief glance at energy stocks for studying their financial ratios to pick the right stock from this category:
|Particulars||Reliance Industries||Larsen & Turbo||Adani Green||NTCP||GAIL||IOCL|
|Price to Earning||25.1||36.6||716||9.95||5.33||9.43|
|Price to Book||5.21||3.2||214.73||1.2||0.99||0.89|
|Debt to Equity||0.37||0.3||11.37||1.26||17.3||0.91|
While the reasons stated above are compelling, green hydrogen energy stocks should be approached with the same caution as other stocks. Despite the positive odds, long-term research must not be jeopardized.