Sterling Generators is not SWSolar. It is a different group company of Sterling and Wilson.
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thanx …got it corrected
Now World’s first Synthetic Diesel from Green hydrogen -project backed by Bill Gates and Jeff Bezos of Amazon
Synthetic Diesel production from Green hydrogen is called e-fuel.
You would be wondering we want to get rid of Diesel , so here comes Green hydrogen.
But why diesel from Green hydrogen ?.
Intersting !
if in the process of Diesel manufacturing from Green hydrogen , carbon dioxide can be captured and used up during the process of manufacturing diesel. such a diesel is called e-fuel.
when e fuel - Diesel is used in existing IC engine it emits same amount of carbon dioxide. so the entire process is carbon neutral.
Will it not be expensive process ? yes it is , but you don’t need to change your existing fleet of diesel vehicles with hydrogen vehicles which is more expensive
Green Hydrogen Pilot Project for Automobiles- RIL, Tata Motors, IOCL to be key bidders
The pilot project will help identify operational issues and gaps in terms of technology readiness, regulations, implementation, infrastructure and supply chains.
The H2 corridor project seeks to support the deployment of hydrogen-powered buses, trucks and cars in a phased manner. The successful bidder will be given funds to close the viability gap due to the higher cost of the hydrogen-powered vehicles in the initial years.
Bidders must participate as a consortium or partners to ensure the entire value chain from making hydrogen and dispensing it to running vehicles, as per the report. The consortium should include a vehicle manufacturer, hydrogen fuel supplier distributor, as well as other partners.
Reliance is partnering with Ashok Leyland, and Daimler India Commercial Vehicles, while Tata Motors is partnering with IOCL as a consortium. Ashok Leyland is also reportedly partnering with NTPC.
So it begins. Since Model code of conduct is ongoing, allottment and final decision is pending.
RIL and L&T lead. But Welspun looks a good bet if allottment gets confirmed.
Any thoughts @1957
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True.
my view is that if Modi Govt comes for the 3rd term, the entire renewable /Hydrogen pack will do well.for next one decade
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Idk if this is the right forum, but I’ll ask anyway.
Do people have a strong opinion on the whole Module manufacturer vs Solar EPC co’s debate on valuation front?
Although ALMM does protect module manufacturers but you never know when the regulations could change. If the installation pace doesn’t keep up with the asking rate do we even have a choice but to allow the Chinese supplies?
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Good question!
As far as my knowledge goes, It is a catch 22 situation for solar panels.
China is the world’s lowest cost producer of solar module.
India is yet to achieve economies of scale to reach that cost advantage and hence it is cheaper for India to import Chinese solar panels.
So Indian solar manufacturers were making losses and they complained to the Govt and the Govt imposed 40% BCD (basic customs duty) on solar panels and 25% on solar cells from April 2022.
By this , imports were curbed. But then our manufacturers were not able to meet the growing demand…So again the govt encouraged imports by reducing customs duty to 20% of solar panels…Now again after one year of 20% duty , solar manufacturers have persuaded the govt to curb imports as they are making losses.
. So the govt again is increasing customs duty to 40%.to curb imports.
So what next we need to watch
Coming to the valuation of solar panel vs EPC , both business get affected by solar panel.
At room temperature, ammonia is a colorless gas with a very pungent odor . This odor is familiar to many people because ammonia is used commonly in cleaning products and smelling salts.
I tried chatgpt to check, if ammonia can be liquid at room temperature…i found following.
@visanty
N2(g) + 3H2(g) ⇌ 2NH3(g) >> this reaction is done with catalyst.
After the reaction, whole mix of gases r cooled down, causing the ammonia to condense into a liquid. Un-used H2,N2 goes back in process. The liquid ammonia is then separated from any remaining gases and purified.
The form of ammonia – it typically exists in a liquid state at room temperature and pressure, unless stored under specific conditions where it can be maintained as a gas.
In short it says, ammonia can be liquid at room temperature,
You might be referring to Pure ammonia which is a colorless gas with a pungent odor ?
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Theoretically speaking Ammonia can exist both in Gas and as liquid form. It may be a Gas at room Temperature. you can produce it in a lab or it can be a bye product in many industrial process. Ammonia perhaps is the only Gas which can be liquified very easily at 20 degree C and 7.5 bar pressure. It is very easy to liquify it due to the strong hydrogen bondage between molecules.
So Liquid Ammonia is the preferred mode of storage , handling , transportation by Road tankers , rail & ships. Ammonia liquid transport by road tricks /tankers known to men since 100 years due to its utility as fertiliser to produce DAP and urea.
So, Ammonia is popularly known in its liquid form.
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Ammonia can’t be used as fuel directly because it act as an irritant at 25 PPM and is lethal at 500 PPM levels.
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Ammonia toxicity is known…but not Lethal at 500 PPM. Exposure to 2500 to 4500 PPM for 30.minutes could be lethal.
Ammonia is in use since more than 100 years.
(1) To produce fertiliser - DAP, Urea, Ammonium nitrate , Ammonium sulphate
(2) House hold cleaning
(3) pharmaceutical industry
(4) As a refrigerant
(5) As hydrogen carrier
(6) Directly as a fuel in trasport.
Ammonia Toxicity - StatPearls - NCBI Bookshelf.
https://spectrum.ieee.org/why-the-shipping-industry-is-betting-big-on-ammonia
GAIL’s first Green hydrogen Project starts production of Green hydrogen
The unit is expected to produce about 4.3 metric tons of hydrogen per day, with a 10 MW PEM electrolyser imported from.Csnafa
Read more at:
What is price per metric ton for Green Hydrogen. Unable to find exact pricing.
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According to Nuvama Institutional Equities, Solar energy cost of Rs 2.8/kw and 55 kw required for 1 kg of hydrogen, green hydrogen cost could be $2.5 per kg. Furthermore, the yearly maintenance cost of the project stands at 1 per cent of project cost.
So ultimately its still chump change at 4.3*1000 * 300 *365 = 500 Crores per year. Gail has annual revenues of 1.3 Lk Crores.
They Need minimum 430 MT per day to make the business relevant in terms of revenue. Even then it will be just 20% of revenue and profits after lets say 10 years.
Green Hydrogen for now will not make any difference in moving these companies. Its more a long term play.
Need to reconsider the euphoria perhaps.
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Hardic Agree, Your smart calculations on Green hydrogen revenue from GAIL may be correct…But Green Hydrogen is its new business vertical which they have just started. The same calculations could also be true for others like Reliance & L&T and many others as well. There is hardly any company in india who is in to stand Alone Green hydrogen production
And We don’t know how soon companies can scale up, what would be the cost structure as the technology evolves further. At this point of time we can not evaluate a company by Revenues from Green hydrogen and it may not be proper to compare revenue from hydrogen vs revenue from other business verticals nor the Green hydrogen business vertical could replace all other existing business verticals of Reliance or L&T or GAIL, though as the green hydrogen business grows, the business may get demerged eventually.
As far as GAIL.is concerned, apart from selling green Hydrogen, a series of value added products can be made starting from green hydrogen ( it already has a full fledged pet chemical business). e.g. making Green Ammonia from Green hydrogen has got a vast potential and a series of many other value added chemicals can be made as discussed in the thread previously.
Whether we call it market euphoria or market intelligence, the stock which was lying dormant has already given 90% return during the last 1 year. It is not without a reason. The last 3-4 quarters performance indicate the future growth potential - if India has to grow economically , energy requirement increases. No wonder , the MF’s have increased their holdings.
Though this thread is a Green Hydrogen thread and not a GAIl thread , I thought it may be relevant to put it here as it deals with green hydrogen - May be we can create a separate thread on GAIL and move the contents to that thread at a later date.
GAIl has already Some 10 existing business verticals…Natural Gas transmission (16000 kms , 70% market share) Gas trading & marketing (50% market share), and a dominant position in direct CGD and through its subsidiary / jt ventures Such as IGL, MGL. Apart from Natural gas transmission & distribution, other verticals are LPG transmission , LNG transmission, RLNG, PNG, Liquid hydrocarbon, Pet chemicals, E & P.
However, there are two major challenges which the company is trying to navigate- (1) We import 80% of our crude oil and 50% of our Natural gas / CNG / LNG …so always carry Geo-political risks and volatile pricing international market. So how would it fit in to our Govt’s Atma Nirbhar Bharat?
(2) Decarbonisation- How does it fit in to the Goal which is of Global nature, though Natural gas methane with only one carbon atom has 16 times less carbon than diesel and 8 times less than petrol.
To meet this dual challenge , the company has started a series of initiatives.
The recent additions to its business verticals during the last 3-4 yrs are Renewable energy such as Solar, wind , Bio Gas from municipality waste , cow dung etc.
you may please visit the link below to see an update on all its business verticals. To see it’s BCG initiatives and how they have linked successfully with CGD , please click right side top menu and then business verticals and then click BCG.
You may please go through the Comprehensive stock analysis by icici securities post q3 results in Adobe Acrobate link below and a latest update.
Further the latest additions in 2024 are (1) Green hydrogen (2) SSLNG - the Next Big Wave (3) Coal to Syn Gas with CCUS & Coal to hydrogen and coal to methane and a series of chemicals thereafter in its pet chemical division- This project is a Dark Horse.
Most analyst below are not factoring the potential revenue growth from the above 3 new proposed business verticals…
So how a natural Gas company with
10 business verticals- all carbon based is trying to decarbonise and become atma nirbhar Bharat… It Is very difficult to replicate GAIL’s business model by anyone.
.the story is only beginning to unfold.
Discl : Invested from.lower level. Not a buy or sell recommendation. PSU stocks carry inherent risk of frequent policy changes.
please do your own assessment before investing.
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