20 Billion USD (INR 1,66,000 Crore) opportunity in renewable energy storage solution called PSP
As technology evolves on Green Hydrogen and Electrolyser, Here is another update related to this subject.
Before we discuss, let us have a recap on
Hydrogen which finds it’s application as follows.
(1) As a feed stock in Fertiliser plant for production of NH3 Ammonia and DAP
(2) As a feed stock in Oil refineries for
Desulfurization.
(3) Hydrogen required by steel and other industries
.
(4) As a fuel in Automobiles and domestic kitchen mixed with natural gas.
(5) Green Hydrogen as a medium of renewable energy storage solution for feeding to power grid.
(Surplus renewable power during day time to be used to electrolyse water to produce green hydrogen and then stored to produce electricity at night to produce electricity by fuel cell)
For Green hydrogen required for 1,2,3,4 above , Electrolyser is a must, though for point no 5 above , there are other alternatives which would create a big opportunity for us as investors.
While Green Hydrogen production with electrolyser by Reliance , L&T, JSW, Adani would go in to stream sometimes in 2025/26, it is NTPC and other Oil & Gas PSU’s leading from front by importing electrolyser and producing Green hydrogen required for 1,2,3,4 above.
For point 5, Renewable storage solution for feeding to power Grid, two alternatives have been identified - Li ion battery & PSP (Pumped- Hydro Storage Plant). Li Ion battery has its own limitation of import content and it would require maintenance and replacement which is of recurring nature.
So , another proven , easy and cost economical way of renewable storage solution is becoming popular world over is PSP which consists of two reservoirs- one at higher elevation and the other at lower elevation. During day time , when solar power production is at its peak &/ or energy demand is low , surplus solar energy / wind energy is used to pump up water from lower reservoir to the higher one. During the night when solar power is not available, water is allowed to fall by gravity flow on a special turbine coupled with generator to produce electricity. The entire combo of pump turbine generators is available as a kit called “reversible pump turbine”
These projects are awarded on a large scale nowadays.
So the entire PSP consists of 4 segments- (1) Civil construction of reservoirs, (2) Hydro mechanical (HM) for converting hydro energy in to mechanical , (3) Electro mechanical ( EM) to convert to electrical energy. (4) The last segment is ancillaries like pumps, valves, pipes, motors, cranes, transformers, switchgear, compressors, cables, and others.
And the most important thing is that most of these are available within our country.
I was looking for a comprehensive study on PSP which I recently discovered - thanks to JM financial institutional securities. it is very useful for all of us, though it was prepared a few months back, it still holds good for next 4-5 years . it contains a comprehensive list of beneficiary companies and listed stocks in each catagory.
Discl : Invested in some of these companies as disclosed earlier in this thread.
This is not a buy sell recommendation. Please do your own assessment before you invest.