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India receives $1.5bn from World Bank to scale up green hydrogen, launch national carbon market
India opens the country’s first Green Hydrogen Subsidy Auction
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Active Players in Green hydrogen market
One of the questions quite often asked is what companies / stocks can we invest for a long term horizon to get benefits out of Green Hydrogen boom ?
While we have discussed some of these companies in the thread earlier, wanted to give an update, now that the Green hydrogen market is getting heated up due to carbon foot print reduction Target , export potential, Govt incentives for electrolysers and Govt subsidy scheme for Green hydrogen production.
Recap
Why do we need green hydrogen ?
Most environmentally sustainable Energy source produced by splitting water by electrolysis powered by renewable energy Solar/ Wind/ Hydro.
Which means you need Sunlight , Wind & Water for producing Green Hydrogen which are plenty on mother Earth.
What can Green Hydrogen do for us?
Requirement of hydrogen was always there for different industries since time immemorial.
(a) Fertilisers industry needs Hydrogen as the feedstock for producing Ammonia NH3 and then to DAP (Di ammonium phosphate) which is extensively used for growing food crops. .
(b)Petroleum refineries around the world need Hydrogen for Refining fuel in a process called
hydrodesulphurisation.
(c) Many other industries like chemical , metallurgical , steel iron etc also need hydrogen for different processes.
However, Hydrogen was being sourced either from methane CH4 or Coal by a chemical process which produces carbon as a bye product. Now that Carbon foot print , green house Gas is a big issue threatening climate change, Hydrogen requirement needs to be sourced through non carbon sources which does not result in carbon emissions and water splitting through electrolysis is an obvious choice. And if we use renewable energy for splitting water ,the hydrogen produced is called green hydrogen.
what else Green Hydrogen can do for us?
(a) Thermal power plants use coal as Energy source which produce a lot of carbon emissions.
Green hydrogen produced by electrolysis of water by Solar wind energy can replace Thermal power plants in a phased manner. How ? (Answered in next question)
(b) Green hydrogen can fuel automobiles in an IC engine or in a Fuel cell. The exhaust gas will have only steam H2O.
it requires hydrogen refueling stations , pipelines infrastructure to be made available. However the technology for making hydrogen automobiles are already in place
(c) Green hydrogen can be used as a kitchen fuel and you will get only steam from your Gas stove. currently, by burning Methane or LPG you get carbon dioxide.
our existing Natural gas pipelines are not capable of handling hydrogen gas. However , it can be mixed with natural gas up to 5% with existing infrastructure
(d) Ammonia made out of Green hydrogen can be a good hydrogen carrier and can be transported easily. Ammonia can also be used as a fuel.
Ammonia can be used to produce DAP.
Why Renewable energy from Solar / Wind can not be used directly and fed to Power Grid in line with power from thermal power plant and How Green hydrogen can replace Thermal power plant ?
Thermal power plants can run 24X7 whether it is day and night or rainy weather. It is not the case with Solar / wind which is not available 24x7.
So, Renewable energy produced from solar/ wind can not be fed to the grid as it would lead to grid instability. To avoid this instability , the excessive renewable energy produced in day time needs to be stored so that the energy can be used in the night. so it calls for huge and bulky battery storage solution for mega electricity storage. And lithium ion battery has limited availability.
However if the excess renewable power produced in day time can be used to split water to hydrogen which can then easily be stored and during the lean hours of night, can be used with the help of a fuel cell to produce electricity when renewable energy not available Therefore , grid stability can be ensured.
With this recap , let us discuss various players in Green hydrogen market.
Most Energy consumer/ energy intensive Industries are the most carbon producers- Steel & Aluminum, Fertilisers , Petroleum refineries, Chemical, Cement and many others in manufacturing sector.
These industries are putting up Renewable energy plants in terms of Solar & Wind to reduce carbon foot prints- whether it is TISCO or Jindal steel or many others.
Oil refineries are the ones which not only consume a lot of conventional energy, (use power produced by NTPC for example produced from coal ) , but these are the ones which also need a lot of hydrogen which currently being produced from Natural gas or coal. They also produce and sell a lot of petroleum products like diesel petrol which in turn produce Carbon. so the oil refiners are desperate to produce Green hydrogen in order to reduce carbon foot print.
Leading PSU’s those who have targets to set up green hydrogen plants are
NTPC, GAIL,ONGC, IOCL BPCL, HPCL, Coal India Some of them have already announced huge fund raising plan through rights issue.
There are top 3 Leading EPC players gearing up for end to end solutions for Green Hydrogen
Adani, Reliance, L&T along with backward integration to manufacture electrolysers.
The other EPC players for Green hydrogen are *Tata power with its arm Tata projects, Thermax, Hero future energy, *
Then there are a lot of Pure play Renewables some of them are planning to jump to Green hydrogen EPC as well… players such as Tata power,JSW energy, KPI, Inox wind, Suzlon, Borosil renewables, Sterling & Wilson, ReNew, ACME, Greenko
There are some IPP - independent power producers of conventional thermal powerplant such as NTPC , Tata power, Adani power, CESC, Torrent , JSW power would like to reduce carbon foot print and go for renewables / Green hydrogen.
Then there are PSU companies like NHPC and SJVN which are in renewables since decades have plans to jump to Green hydrogen as IPP and also EPC.
Then comes the Electrolyser & Fuel cell manufacturing.
While all the 3 leading players Adani , Reliance
& L&T have already lined up foreign collaboration for electrolysers such as
Stiesdal, Hydrogen pro There are few more stand alone electrolyser manufacturers those who have put up plant in India- Ohmium for PEM electrolyser, Greenko-John Cockerill for alkaline electrolyser, and H2e for AEM electrolyser
And the most important ones are the MSME’s who would serve as small ancillaries for the entire value chain.
Let us keep this post updated with new names not mentioned in this post
Discl: This is not a recommendation to buy or sell stocks listed / unlisted discussed in this post. This is only for educational and information purpose.
please do your own assessment before investing in any stocks .
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Great Details. Thanks 
Remember seeing the names of Linde India, Anup Engineering, GFCL in connection with Green Hydrogen.
Olectra had made a hydrogen bus in collaboration with Reliance. Maybe that should also feature here.
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GFCL full name please
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Linde India
We investors often get confused with the name Linde India. Formerly , it was known as IOL- Indian oxygen limited, BOC India and Praxair India.
Linde India is in to marketing of industrial grade packaged Gas like hydrogen and oxygen and other gases which includes welding , Gas cutting. Gas is delivered in cylinders either compressed like LPG or Cryogenic in liquid form. Hydrogen they supply is not be necessarily green hydrogen which they supply to different industries- small big to meet their regular requirement and medical grade oxygen to hospitals. Yes , their business is good , they make good profit , but they are in no way connected with Green hydrogen EPC at all.
However , their parent company Linde Plc is in to Green hydrogen and they make PEM electrolysers. In India they have another unlisted entity called “Linde engineering pvt limited” who has started Some work on Green hydrogen EPC on a small scale. We are yet to see any major order book and since it is not a listed entity, we don’t come to know any update
Regarding Anup engineering , Yes it could be a proxy play to green hydrogen especially EPC.
On hydrogen Cars , Buses ,. …why name only Olectra…every one in the world has Hydrogen technology since decades both as IC & Fuel cell, & Hybrid - Tata , Leyland , Mahindra , Maruti , and all MNC Auto manufacturers…Leyland is supplying it’s Hydrogen Buses for the pilot project in Delhi. If hydrogen refuelling stations are made available and govt subsidy is given then everyone will make hydrogen vehicles - though it would take quite some time in India for a full scale Hydrogen automobiles. Now it is time for EV…though Elsewhere in the developed nations, Hydrogen vehicles have started plying in plenty.
GFCL - Gujarat FluoroChemicals makes speciality Fluoropolymers which finds its use in Hydrogen Fuel cells for electricity generation , Solar panels and EV batteries
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There is one relationship that I found between Denora and Thyssenkrup that is important to understand and I foresee that DeNora India should benefit from this strategic relationship. Anyone with more knowledge on the subject may comment so we can discuss further.
https://www.denora.com/media/press-release/2022/De-Nora-and-tk-confirm-their-partnership.html
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Both Denora and Thyssenkrup- Italy & Germany are made for each other with regards to Alkaline water electrolysis. Both are experts in alkaline chemistry.
However, Alkaline water electrolysis ,(AWE) is a very old and conventional technology which has already reached its matured stage with its own pros and cons.
Pros is that it is proven technology , low cost as noble metal coating like platinum not required , better tolerance to impurities in water. Cons are High concentration KOH solution required which corrodes leading to comparatively less life , safety issues , less efficiency, poor response time to grid instability.
Now , what is being preferred is PEM technology ( proton exchange membrane) which are more efficient , better response time , better grid stability, better efficiency , purity of hydrogen though expensive due to noble metal platinum !
PEM & AWE are two extreme ends of the Electrolyser technology. So the emerging trend is AEM ( Anion Exchange membrane ) which takes care of the Cons of AWE and the Strength of PEM.
AEM uses plain water or diluted KOH and a membrane , does not require noble metals like platinum, though both AWE and AEM are based on OH- diffusion method while PEM follows H+ diffusion method.
Since currently there is a huge requirement of electrolysers, all the 3 classes of electrolysers would be in demand initially and depending upon how the technology evolves , it is to be seen who wins the race ?
Having said that , i trust less on any listed MNC in India for investment purpose. Whenever there is a market opportunity in India , these parent companies tend to divert the business through its unlisted entity in India , thanks to Indian policy.
For example, as mentioned in my previous post Linde Plc has PEM technology and EPC for green hydrogen , but they dont want to route this business through linde india. They are doing this through their unlisted entity “Linde engineering pvt limited”.
Similarly , Cummins Inc- USA has PEM electrolyser technology globally well known. But they may like to do this business though its half a dozen unlisted entity rathan than Cummins India.
For any new technology like electrolyser or Fuel Cell related, my choice for investment decision would be Indian company with foreign collaboration / technology tie up .
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If that be so what will be the options available other than PSUs and L&T, Reliance.
Need to look at ancillaries or proxies that will benefit from scaling of Green Hydrogen.
Green Hydrogen Play
There are many options if one wants to play on Green hydrogen Story.
(1) Apart from Reliance , L&T , Adani is another promising option on Green hydrogen play, though Adani group has landed up in controversy and the crash in stock prices, though the valuation still appears to be expensive. However one can accumulate at decline, once the controversy gets cleared.
(2) All OIL & Gas PSU stocks as mentioned in my previous post- are leading from the front with regards to Green Hydrogen projects implementation as per mandate. Fund is not an issue. The companies would make money in hydrogen business in the long run, though change in Govt policy is a risk factor to consider. These companies are with clean balance sheet
(3) If one is adverse to Reliance , L&T , Adani , there are many other EPC players in Green hydrogen in listed space, Jsw energy ,Tata power/ Tata projects, Thermax etc.
(4) Another option is pure renewable play. There is no Green Hydrogen without Solar/wind/ hydro energy. So investing in these stocks , you are investing indirectly in Green hydrogen. Moreover some of these renewable players are going forward integration to take up Green hydrogen EPC. It also makes sense for them- KPI, Inox wind, Suzlon, Borosil renewables, Sterling & Wilson, Waaree renewables in listed space and in ReNew, ACME, Greenko in unlisted space.
(5) There are a lot many thermal power producers who would like to Go Green by adding renewables and/ or Green hydrogen and going forward they will have to phase out thermal power plants… NTPC , NHPC , SjVN , Tata power , Adani , JSW, Torrent , CESC
(6) The other options which many of us are interested is ancillaries- Electrolyser and Fuel cells and related components.
Currently Stand alone Electrolyser and Fuel cell manufactures are mostly MSME’s in unlisted space , funded by PE investors and banks. These are likely to go public when they make a good balance sheet and the PE / banks would like to sell their stake. These can make multibagger opportunities like Drone sector.
Prominent of them are Ohmium for PEM electrolyser, Greenko-John Cockerill for alkaline electrolyser, and H2e for AEM electrolyser … There was an article from a foreign media on Indian electrolyser industry sometime back and it is still valid today - link given below- 1st one .
Very recently another new manufacture Chennai based Hild electric has surfaced when NTPC has placed the largest order of alkaline electrolyser.- please read the link below.
Apart from this there are many companies from different sectors are claiming their earning from Green Energy portfolio- we need to analyse and understand them clearly - to catch them young …
Gujrat fluro on fluoropolymers used in fuel cells…Apar industries for conductors, MTAR etc…
Discl,: This is only for information and education purpose. it is not an investment advice. please do your own assessment before investing.
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India receives $1.5bn from World Bank to scale up green hydrogen, launch national carbon market
After World Bank’s $1.5bn, EIB sanctions €1 billion loan for India’s Green Hydrogen mission
The recent upmove in DeNora and ace investors increasing stake in the company is indicative of the fact that DeNora is going to get a good chunk of the Green Hydrogen pie.
Good if Denora is going to get the green hydrogen business.
Who are the Ace investors , any idea ?
and the current order book position of Denora ?
Because, I can see the performance of last few quarters as seen in screener are not that encouraging to buy at such a high P,/ E multiple, though order book can pick up if there is some concrete plans to make any electrolysers.
In that case , they would have filed that information with BSE/ NSE which I was not able to find
The company has an established technology in place. In such instances when future growth rates are explosive in nature with the targets being announced world over, such companies are most likely to benefit.
They just have to scale up to the requirement.
Not sharing the links of various funding being shared in above posts for the Green Hydrogen to avoid repetition.
They have already listed energy transition here.
https://denora.com/markets-industries/energy-transition.html
They also claim fuel cell tech know how. https://www.denora.com/applications/fuel-cells.html
But let that not be the only reason for investment. Even they can make mistakes.
Disclaimer - Invested. Getting more conviction to add more.
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Interestingly , there seem to be no FII buying. Anyway, it is worth keeping the stock under watchlist…and I would wait for any official information to be filed by the company with BSE/ NSE.
If they can make electrolysers , they can very well make Fuel cell too…as it is just the reverse process.
Often heralded as the ‘fuel of the future’, Green Hydrogen has been considered a unique energy carrier for decarbonising Industries and accelerating India’s journey towards Net Zero 2070. EIL is working towards implementation of Green Hydrogen projects in sectors such as Refineries, Fertilizers, CGDs, Steel etc., in line with GoI’s push for the deployment of Green Hydrogen Technologies. Leveraging its decades of experience working in more than 25 Hydrogen and Ammonia Units, EIL has tapped significant Green Hydrogen assignments in the country. With concerted efforts, EIL is providing consultancy services for the milestone project of India’s first long-distance Hydrogen Pipeline.
EIL provides a wide spectrum of services in the Green Hydrogen sector such as Feasibility Studies, Basic Design and Engineering Packages for:
- Electrolyser based Green Hydrogen plant with limited support from the Electrolyser Manufacturer
- Green Hydrogen Storage
- Green Hydrogen Transportation through pipeline
- Executing the entire value chain on EPCM / PMC Services
EIL is leveraging its strong credentials to tap significant business opportunities in the Green Hydrogen sector in India and overseas. Some of EIL’s key Green Hydrogen projects are:
- Conceptual Study for Setting up Green Hydrogen Plant based on 5000 MW renewable power
- Selection of LEPC Contractor for Green Hydrogen Plant of ~ 8.5 TPD Capacity based on Alkaline or PEM Technology
- PMC Service for Green Hydrogen Plant of 4.3 TPD capacity based on PEM Technology
- Detail Feasibility Report (DFR) For 4000 TPD Green Ammonia Plant
- Consultancy Services for Feasibility and Basic Engineering of Hydrogen pipeline (200+ km) - India’s 1st Hydrogen long distance Pipeline
- Hydrogen blending in NGs Pipeline/ City Gas Distribution Network
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Is it possible to find out as to how much % is the green hydrogen business out of the total order book ?
Who are the clients ?
Reliance with Bharat Benz for Hydrogen Bus.
Reliance could again disrupt with Hydrogen fuel for Automobiles in India
The hydrogen fuel cell is not yet well developed in India and the cost initially would be very high. It would require a Govt subsidy like EV.
Reliance earlier in Feb 2023, had launched an IC engine with hydrogen as a fuel. The strategy here is to use Green hydrogen fuel in our conventional internal combustion engines , which is definitely practicable at affordable rate. The existing IC engine concept is applied to burn Hydrogen in place of diesel petrol.
Bharat Benz is basically CV arm of Mercedes Benz in India and Reliance has already lined up for end to end solutions for Green hydrogen production.
So , Now Reliance has two trial.buses - one Hydrogen IC engine and another Hydrogen fuel cell
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