Recently the Adani group announced that it has entered into a partnership with Total Energies of France to jointly develop the green hydrogen ecosystem. Gautam Adani group will invest 50 billion dollars over the next 10 years on green hydrogen projects.

Adani aims to become the world's most significant Green Hydrogen player with a Green Hydrogen production capacity of one million tonnes per annum before 2030. But Adani group is not the only one to be upbeat about green hydrogen reliance industries is investing rupees 75000 crores over the next three years to build a new clean energy business.

Engineering major Larsen and Turbo (L&T) renewable energy company, Renew Power is among the many private sector companies looking to invest in this space. The list is long and even public sector companies like NTPC, BPCL, and Indian oil corporations have announced their entry into this space.

Green Hydrogen Mission

So what exactly is green hydrogen and why has it caught everyone's attention To understand this let's rewind to Independence Day August 15, 2021. As PM Modi cited. “We have to make India a global Hub for Green Hydrogen Production and export”.

Video Courtesy: PMO India

The video shared by PMO was the first time green hydrogen and the national hydrogen mission were included in the national narrative of clean energy. 

What is GREEN HYDROGEN?

You may remember reading in school books that HYDROGEN is the most abundant element in the universe but pure or elemental hydrogen is a very scarce resource. It almost always exists in compounds like with oxygen to form H2O or water. Remember reading about electrolysis in chemistry when an electric current is passed through water it splits it into elemental oxygen and hydrogen through electrolysis and if the electricity used for this process comes from a renewable source like wind or solar, what you have is green hydrogen. 

So if you hear other colors attached to hydrogen it only refers to the source of electricity used in the process of electrolysis. 

For instance, if coal is used we get Brown Hydrogen. This hydrogen is a great source of energy because of its high energy content per unit of weight. This is why it is used as rocket fuel.

Green Hydrogen in particular is one of the cleanest sources of energy with close to zero emissions. It can be used in Fuel Cells for cars or in energy-guzzling industries like fertilizers and steel manufacturing. To encourage the green hydrogen industry, the government on February 17 announced the first part of the national green hydrogen policy. 

Among other things to boost the green hydrogen sector in the country, the government said, “it will allow free power transmission to renewable energy units set up by green hydrogen producers and allow power banking facilities for 30 days”, the second round of the policy is expected to announce economic incentives to boost the sector.

Companies that invested in Green Hydrogen

Several Indian companies have invested in green hydrogen technology and projects. And which are Indian Green Hydrogen stocks to invest in. While the companies are gearing up let's take a glimpse  at some of the industry heavyweights who have already announced plans to enter the green hydrogen space:

Reliance Industries Ltd. (RIL)

Reliance Industries aims to be a net carbon-neutral company by 2035. It has plans of investing 75000 crore rupees in the clean energy business and green hydrogen will play an integral role in that it has also invested 50 million dollars in U.S.-based energy storage company Ambry. It has also acquired a Norwegian solar equipment maker REC Solar Holdings and has a 40 stake now in renewable project specialist companies Sterling and Wilson Solar. All this could be support for the green hydrogen business going ahead. Reliance also aims to be one of the largest producers of Blue Hydrogen globally by using petroleum coke.

Video Courtesy: CNBC TV18 

“Efforts are on globally to make green hydrogen the most affordable fuel by bringing down its cost to initially under two dollars per kilogram. India has always set and achieved even more audacious. Impossible goals and I am sure that India can set an even more aggressive target of achieving one dollar per kilogram within a decade. This will make India the first country globally to achieve one dollar per kilogram of hydrogen in one decade, the one-on-one target for green hydrogen”-Mukesh Ambani.

Adani Group in Green Hydrogen

The Adani Group, a leading Indian conglomerate, has announced plans to set up Green Hydrogen production facilities in India, using renewable energy sources such as solar and wind power. Adani Group plans to invest 50 billion dollars over the next 10 years on a green hydrogen project with a total of France. Adani group has also signed a non-binding pact with NASDAQ-listed Ballard power system. To evaluate a joint venture for investment in the commercial production of green hydrogen fuel cells for various mobility and industrial applications in India. Adani Joined hands with Total Energy a French-based company to invest in Green Hydrogen.

Video Courtesy: Adani Group

“Hydrogen is the trigger for the smarter use of other renewables by becoming the long-term transport and distributed storage solution for electricity. It is the key link in the energy transition journey that along with wind and solar will stabilize, decentralized power generation" - Gautam Adani.

Oil India Limited the state-run oil exploration and production company Oil India Limited commissioned India's first 99.999 pure green hydrogen plant in Assam in April this year.

Indian Oil Corporation (IOC)

Indian oil corporation the company plans to convert grey hydrogen at its Mathura and Panipat plants into green hydrogen by 2030. The company also has in-principle approval for an investment of rupees 100 crores for setting up a green hydrogen fuel infrastructure unit at Kochi and Thiruvananthapuram as a pilot project. In fact, the Indian oil corporation has tied up with Larsen and Toubro and Renew Power to jointly develop green hydrogen projects in India.

Larsen and Toubro (L&T) 

L&T Green Hydrogen is a subsidiary of Larsen and Toubro (L&T), one of India's leading engineering and construction companies. The subsidiary is focused on the development, production, and distribution of Green Hydrogen in India. It aims to support the Indian Government's National Green Hydrogen Mission 2023 and contribute to the country's goal of achieving energy security and reducing its dependence on fossil fuels.

L&T Green Hydrogen will collaborate with leading companies in the hydrogen sector, It has already signed a pact with Norway-based electrolyzer and technology manufacturing company Hydrogen Pro, to develop and implement cutting-edge technologies for the production, storage, and transportation of green hydrogen. The subsidiary will also focus on building a skilled workforce and creating a conducive environment for investment in the green hydrogen sector.

In addition to its partnership with Hydrogen Pro, L&T Green Hydrogen will also explore other opportunities for collaboration with companies in the hydrogen sector, including those in the regions of research and development (R&D), infrastructure development, and policy frameworks.

National Thermal Power Corporation (NTPC)

NTPC the state-run power utility backed the country's first hydrogen microgrid project at its Simhadri plant in Andhra Pradesh. The company has also set up India's first green hydrogen fueling station in Ley Ladakh. The green hydrogen revolution could be a big game changer for the world as energy prices continue soaring and energy demand continues to be robust. For India, it could be a sure and clean way to ensure energy security.

Gas Authority of India Limited (GAIL)

The state-run company is geared up to create India’s largest green-hydrogen facility over the next 12-14 months. It aims to increase its natural gas business with carbon-free fuel, as investors increasingly focus on environmental, colonial, and governance (ESG) parameters. 

The previous year, GAIL chairman and managing director Manoj Jain said the company launched a global tender to procure an electrolyzer that could deliver 4.5 tons a day of hydrogen. The company started a first-of-its-kind project of blending hydrogen in the natural gas system at Indore, on a pilot basis.

Bharat Petroleum Corporation Ltd (BPCL)

BPCL has teamed with Bhabha Atomic Research Centre (BARC) to work on alkaline electrolyzer technology for Green Hydrogen production. The company aims to scale up production of the electrolyzer for commercial use, particularly in refineries.

What are the reasons top Indian Companies invest in Green Hydrogen?

There are several reasons why top Indian companies are investing in green hydrogen:

Environmental concerns: 

Green hydrogen is a clean and renewable energy source that does not produce greenhouse gases or other harmful emissions. This makes it an attractive option for companies looking to reduce their carbon footprint and contribute to the fight against climate change.

Energy security: 

India heavily depends on fossil fuels for its energy needs, and investing in green hydrogen can help the country reduce its reliance on imported fuels.

Economic benefits: 

Green hydrogen can be used in a variety of applications, including power generation, transportation, and manufacturing. This creates economic opportunities for companies that are involved in the production and distribution of green hydrogen.

Government incentives: 

The Indian government has been actively promoting the use of green hydrogen and has implemented various incentives and subsidies to encourage companies to invest in this technology.

Growing market demand: 

As the global demand for clean and renewable energy sources increases, companies that invest in green hydrogen now will be well-positioned to meet this demand in the future.

Many other companies, such as ReNew Power, ACME Group, and JSW Group, are working towards entering the green-hydrogen ecosystem.

National Green Hydrogen Mission Policy in India

In the first quarter of January 2023(4th of January 2023), the Government of India launched the Green Hydrogen Mission and its policy. The National Green Hydrogen mission has been approved by the Cabinet with an initial outlay of Rs. 19,744 crores. 

The mission aims to promote the production and use of green hydrogen in India, a clean and sustainable energy source. The mission will focus on the development of production facilities, storage, and distribution infrastructure for green hydrogen. It will also provide financial and technical support to industries and businesses to adopt green hydrogen technology. 

The mission will also work towards creating a robust regulatory framework for the Green Hydrogen sector, to ensure its safe and efficient usage. Additionally, the mission will also focus on creating a market for Green Hydrogen by developing a comprehensive strategy for its use in various sectors.

This mission is a major step towards India's goal of achieving energy security and reducing its dependence on fossil fuels.

A National Green Hydrogen Mission of India Book, published in January 2023.

In conclusion, the National Green Hydrogen Mission aims to provide a comprehensive action plan for the development and promotion of the Green Hydrogen sector in the country, to support the transition to a sustainable and low-carbon economy.