So you want to invest in green hydrogen stocks in India in 2024? You’re in just the right place!
The global shift towards clean energy solutions has thrust green hydrogen into the spotlight as a key player in the fight against climate change. As countries worldwide strive to meet their carbon reduction targets, green hydrogen’s versatility and zero-emission profile make it an increasingly attractive option for decarbonising various sectors, from industry to transportation. This rising importance is reflected in the growing investments and policy support for green hydrogen technologies globally.
With its ambitious National Hydrogen Mission, India is positioning itself as a potential leader in the green hydrogen space. Supported by government initiatives and private sector investments, the country aims to produce 5 million tonnes of green hydrogen annually by 2030.
This article aims to identify the top 10 green hydrogen stocks in India and the USA for 2024, providing insights into companies at the forefront of this emerging sector. Keep reading!
What is Green Hydrogen?
Green hydrogen is a clean energy carrier produced by splitting water into hydrogen and oxygen using electricity from renewable sources like solar or wind power. This process, called electrolysis, produces hydrogen fuel with zero carbon emissions, distinguishing it from grey or blue hydrogen produced using fossil fuels.
Green hydrogen can also be used across various sectors, including transportation, industry, and power generation, offering a versatile and sustainable alternative to traditional fossil fuels.
Green hydrogen is important in combating climate change because of its potential to decarbonise hard-to-abate sectors such as steel production, long-haul transportation, and chemical manufacturing.
The future outlook is promising, with projections suggesting that green hydrogen could meet up to 24% of global energy demand by 2050.
Overview of Green Hydrogen Industry in India
In 2024, India’s green hydrogen industry is experiencing significant growth due to robust government initiatives and increased private sector investments. The National Green Hydrogen Mission, launched to establish India as a global hub for green hydrogen production and export, plays a pivotal role in this expansion. Major industrial players such as Reliance Industries, Adani Group, and Indian Oil Corporation are leading the charge by investing heavily in green hydrogen projects. These efforts are part of a broader strategy to meet the nation’s energy needs sustainably while reducing carbon emissions.
The policy reforms introduced in 2024 are designed to accelerate the development of the green hydrogen sector in India. These reforms include subsidies, tax incentives, and the establishment of public-private partnerships to foster innovation and infrastructure development. The Indian government has set an ambitious target of producing 5 million tonnes of green hydrogen annually by 2030. This target is part of a comprehensive plan to reduce the country’s dependency on fossil fuels and to promote renewable energy sources. The reforms are expected to drive substantial investments in the sector, further boosting its growth.
Green hydrogen is poised to become a cornerstone of India’s energy strategy in 2024. Investments in advanced electrolyzers and renewable energy sources are crucial for creating a sustainable hydrogen ecosystem. Companies like NTPC and L&T are at the forefront of this transformation, focusing on developing efficient hydrogen production methods and infrastructure. These efforts are not only aimed at enhancing energy security but also at positioning India as a leader in the global green hydrogen market. The industry’s growth is expected to contribute significantly to the country’s economic development and environmental sustainability goals.
Why Invest in Green Hydrogen Stocks in India?
The Indian government has launched ambitious initiatives to promote green hydrogen, positioning the country as a potential leader in this emerging sector. The National Hydrogen Mission aims to make India a global hub for green hydrogen production and export, aiming to produce 5 million tonnes of green hydrogen annually by 2030.
Moreover, India’s green hydrogen market is poised for substantial growth, driven by increasing demand for clean energy solutions and the country’s abundant renewable resources. Major corporations and startups invest heavily in green hydrogen technologies, creating diverse investment opportunities.
Top 10 Best Green Hydrogen Stocks in India in 2024
As India accelerates its transition to clean energy, several companies emerge as key players in the green hydrogen sector. These stocks represent a mix of established energy giants pivoting towards green hydrogen and innovative startups focused solely on this technology. Here is a table of the top 10 green hydrogen stocks in India to watch in 2024:
| Sr. No. | Company |
| 1 | Reliance Industries Ltd |
| 2 | Adani Green Energy Ltd |
| 3 | Indian Oil Corporation Ltd |
| 4 | NTPC Ltd |
| 5 | Bharat Petroleum Corporation Ltd (BPCL) |
| 6 | Oil and Natural Gas Corporation Ltd (ONGC) |
| 7 | Larsen & Toubro Ltd (L&T) |
| 8 | GAIL (India) Ltd |
| 9 | JSW Energy Ltd |
| 10 | Powergrid Corporation of India Ltd |
1. Reliance Industries Ltd
Reliance Industries is making bold strides into the green hydrogen sector, leveraging its significant financial resources and energy expertise. With a market capitalisation of ₹19,67,701.12 Cr and revenue of ₹2,36,533.00 Cr in Q1 2024, Reliance has the financial muscle to drive large-scale green hydrogen projects. The company plans to invest ₹75,000 Cr in green energy initiatives, including electrolyser manufacturing and hydrogen production facilities.
2. Adani Green Energy Ltd
As India’s largest renewable energy company, Adani Green Energy is well-positioned to lead in the green hydrogen space. The company has shown strong financial growth with a market cap of ₹2,81,054.88 Cr and Q1 2024 revenue of ₹2,498.00 Cr. Adani Green Energy plans to invest $20 billion in renewable energy over the next decade, including significant allocations for green hydrogen projects.
3. Indian Oil Corporation Ltd
IOCL, with its vast network and experience, is actively pursuing green hydrogen opportunities. The company’s financials are robust, with a market cap of ₹2,32,110.80 Cr and Q1 2024 revenue of ₹1,98,649.76 Cr. IOCL is investing ₹2,000 Cr in green hydrogen projects, including India’s first green hydrogen plant at its Mathura refinery.
4. NTPC Ltd
India’s largest power generator, NTPC, is investing significantly in green hydrogen. With a market cap of ₹3,53,976.80 Cr and Q1 2024 revenue of ₹47,622.06 Cr, NTPC has the financial strength to support its green initiatives. The company plans to invest ₹1 lakh crore by 2032 in renewable energy, including green hydrogen projects.
5. Bharat Petroleum Corporation Ltd (BPCL)
BPCL is actively exploring green hydrogen production with its strong financial backing. The company has a market cap of ₹1,28,549.92 Cr and reported revenue of ₹1,16,554.73 Cr in Q1 2024. BPCL plans to invest ₹5,000 Cr in renewable energy over the next five years, with a significant portion allocated to green hydrogen projects.
6. Oil and Natural Gas Corporation Ltd (ONGC)
ONGC, India’s largest oil and gas company, is diversifying into green energy, including hydrogen. With a market cap of ₹3,36,836.98 Cr and Q1 2024 revenue of ₹1,66,770.63 Cr, ONGC has substantial resources to invest in new technologies. The company plans to invest ₹1 lakh crore in clean energy projects by 2030, including green hydrogen initiatives.
7. Larsen & Toubro Ltd (L&T)
L&T is leveraging its engineering prowess to enter the green hydrogen market. With a market cap of ₹4,95,350.90 Cr and Q1 2024 revenue of ₹67,078.68 Cr, L&T has the financial strength to support its green hydrogen ambitions. The company is developing its electrolyser technology and has partnered with ReNew Power to produce green hydrogen.
8. GAIL (India) Ltd
As India’s largest natural gas company, GAIL is well-positioned to integrate green hydrogen into its operations. With a market cap of ₹1,40,332.35 Cr and Q1 2024 revenue of ₹32,756.32 Cr, GAIL has the financial resources to invest in this new sector. The company plans to build India’s largest green hydrogen plant and is exploring ways to blend hydrogen into its existing natural gas network.
9. JSW Energy Ltd
JSW Energy is actively pursuing green hydrogen projects as part of its renewable energy strategy. The company has shown strong financial performance with a market cap of ₹1,25,856.81 Cr and Q1 2024 revenue of ₹2,755.87 Cr. JSW Energy plans to invest ₹75,000 Cr in renewable energy by 2030, including green hydrogen projects.
10. Powergrid Corporation of India Ltd
While primarily a power transmission company, Powergrid is exploring ways to support the green hydrogen ecosystem. With a market cap of ₹3,03,850.73 Cr and Q1 2024 revenue of ₹11,978.11 Cr, Powergrid has the financial stability to invest in new technologies. The company’s extensive power grid infrastructure could be crucial in connecting green hydrogen production sites to end-users.
Factors to Consider When Investing in Green Hydrogen Stocks
Impact of Government Policies and Incentives on Green Hydrogen Investments
Government support is crucial for the green hydrogen sector. In 2024, the Indian government has launched several initiatives under the National Hydrogen Energy Mission. These include subsidies, tax incentives, and funding for research and development. Keeping an eye on these policies can help you understand the financial viability of investments. Strong policy backing can reduce operational costs and enhance profitability for green hydrogen companies.
Role of Technological Advancements in Reducing Production Costs
Innovation in technology directly impacts the cost and efficiency of green hydrogen production. Look for companies investing in advanced electrolyzer technology, which is key for splitting water into hydrogen and oxygen using renewable energy. In 2024, improvements in energy efficiency and production methods are expected to drive down costs. Companies leading in technological advancements will likely offer better returns on investment.
Growing Market Demand and Applications Across Various Sectors
The demand for green hydrogen is growing across various sectors, including transportation, industry, and energy storage. In 2024, this demand is expected to increase significantly as industries seek to reduce carbon emissions. Assess the market size and the adoption rate in different sectors. Companies with diversified applications and strong market presence are better positioned to capitalise on this demand.
Evaluating Financial Health and Securing Funding for Green Hydrogen Projects
Before investing, evaluate the financial health of the companies. This includes analysing their balance sheets, debt levels, and cash flow. In 2024, the ability to secure funding through capital markets, government grants, or private investors is critical. Financially stable companies with access to capital can expand their operations and invest in new technologies, ensuring sustained growth.
Ensuring Regulatory Compliance and Minimising Environmental Impact
Compliance with environmental regulations is non-negotiable. In 2024, stricter global and local regulations are in place to ensure sustainable practices. Companies that meet these standards without significant penalties will have a competitive edge. Moreover, a strong commitment to environmental sustainability can enhance a company’s reputation and long-term viability.
Analysing the Competitive Landscape and Strategic Partnerships
Understanding the competitive landscape helps identify potential investment opportunities. Analyse the market share, strengths, and strategies of key players in the green hydrogen industry. In 2024, look for companies with robust business models, strategic partnerships, and innovative technologies. Being aware of the competitive dynamics will help you make informed investment decisions.
Conclusion
Investing in green hydrogen stocks in India in 2024 presents a compelling opportunity. The sector is buoyed by strong government support, cutting-edge technological advancements, and a growing market demand across various industries. To make informed decisions, focus on companies that excel in regulatory compliance, maintain strong financial health, and lead in innovation. Understanding the competitive landscape and strategic partnerships will also give you an edge. By keeping these factors in mind, you’ll be well-positioned to capitalise on the immense potential of the green hydrogen market in India.
Remember that you should never be carried away by the potential of a single sector. As an investor, the factor that is most in your control is the risk you take, and managing that risk over the long term is key to success. So spread your investments across two or three green hydrogen companies, as well as other sectors to mitigate your investment risk. Diversifying your portfolio can help reduce the impact of market volatility and company-specific risks.
Also Read: Why diversification is important
To get really savvy with your risk management and optimise your portfolio for growth at the same time, consider geographic diversification as well. For example, you can invest in US stocks through the Appreciate App, including US green hydrogen stocks. US stocks have (historically ) outperformed Indian stocks, and over the years, the Indian rupee has consistently lost value against the US dollar. By investing in US stocks, you are now getting to be on the side that is benefiting from the rupee falling, not suffering from it.
If you are interested in investing in other upcoming sectors in India, here’s a list of articles you will like:
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Best Green Energy Stocks in India
Disclaimer
The information provided in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Investing in stocks involves risk, and it is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. The author and publisher are not responsible for any financial losses or gains that may result from the use of this information.
