Green Hydrogen Stocks in India

Green hydrogen stocks represent companies that produce, store, and transport green hydrogen. Green hydrogen is a clean-burning fuel created by splitting water molecules using renewable energy sources such as solar and wind power. India's green hydrogen energy stock industry aims for energy independence by 2047 and net-zero emissions by 2070. Green hydrogen is produced via electrolysis, using renewable energy like solar and wind power to split water into hydrogen and oxygen. This clean fuel can replace fossil fuels and reduce pollution. The demand for green hydrogen is growing as it has the potential to decarbonize sectors like transportation, shipping, and steel production. In this blog, we will explore some of the green hydrogen stocks in India that may be best for your portfolio based on their PE ratio and provide an overview of green hydrogen companies.

What are Green Hydrogen Stocks in India?

India's green hydrogen sector is gaining momentum as the country aims for energy independence. Green hydrogen is produced through electrolysis, using renewable energy like solar and wind power to split water into hydrogen and oxygen. This clean fuel can replace fossil fuels and reduce pollution. India launched a National Green Hydrogen Mission in 2022, aiming for a 5MMT annual production capacity and an additional renewable energy capacity of around 125 GW. The Union Budget of FY 2024-25 has allocated a 102% increase from the previous budget.

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List of Green Hydrogen Stocks in India 2024

Important Note: All the below information is accurate as of 1st Aug 2024. However, it is important to conduct research before making any investment decisions in these stocks. We do not recommend buying without thorough research and professional financial advice. Always consult a certified financial advisor to ensure the stocks align with your investment goals and risk tolerance.

Overview of Green Hydrogen Companies in India

Here is a quick overview of the green hydrogen firms in India listed above.

1. Adani Green Energy Limited

• Adani Green Energy Limited is part of the Adani Group, focused on renewable energy solutions. 
• The company operates one of the largest renewable energy portfolios in India, with a focus on solar and wind power projects. 
• It is committed to sustainability and aims to contribute significantly to India's renewable energy capacity.
• Adani Green is committed to enhancing its technological capabilities and expanding its geographical footprint, ensuring long-term growth and resilience in an evolving energy market.

 Get more details about Adani Green Energy Ltd share price today here.
Know the Adani Green Energy Ltd share price history here.

 

2. Adani Power Ltd

• Adani Power, another subsidiary of the Adani Group, is involved in the power generation sector. 
• It operates coal-based thermal power plants across India and has been expanding its capacity to meet the country’s growing energy demands. 
• The company also explores renewable energy options as part of its long-term strategy.
• The company’s operational efficiency and focus on cost-effective energy production have positioned it as a key player in the Indian power sector. 
• As the energy landscape shifts, Adani Power is also exploring cleaner energy alternatives, aiming to balance its thermal power operations with sustainable energy solutions.

Get more details about Adani Power Ltd share price today here.
Know the Adani Power Ltd share price history here.

3. Adani Total Gas Limited

• Adani Total Gas Limited is a joint venture between Adani Group and Total Energies. 
• It operates in the natural gas distribution sector, supplying compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for domestic, commercial, and industrial use. 
• The company aims to expand its network across various cities in India.
• Adani Total Gas is poised to play a crucial role in India’s transition to cleaner energy sources, with plans to expand its network to more cities and towns across the country.

 Get more details about Adani Total Gas Limited share price today here.
Know the Adani Total Gas Limited share price history here.

4. KKV Agro Powers Ltd

• Founded in 2004, this company specializes in power generation through biomass energy and operates in the renewable energy sector. The company focuses on utilizing agricultural and organic waste to produce sustainable energy.
• KKV Agro Powers Ltd has seen moderate financial performance, benefiting from the growing demand for renewable energy and government incentives for biomass power projects.
• The company aims to expand its biomass power generation capacity and contribute to India's renewable energy targets while promoting sustainable agricultural practices.
   

Get more details about KKV Agro Powers Ltd share price today here.
Know the KKV Agro Powers Ltd share price history here.

5. Power Grid Corporation of India (PGRD) Ltd

• Power Grid Corporation of India is a state-owned company responsible for the transmission of electricity across India. 
• It operates a large network of transmission lines and substations, ensuring the efficient and reliable delivery of power. The company plays a crucial role in the development of India's power infrastructure.
• As India pushes towards electrification and renewable energy integration, the Power Grid’s role in ensuring grid stability and efficient power transmission remains critical.
   

Get more details about Power Grid Corporation of India Ltd share price today here.
Know the Power Grid Corporation of India Ltd share price history here.

6. Reliance Industries Ltd

• Reliance Industries is one of India's largest conglomerates, with diversified interests in petrochemicals, refining, oil, telecommunications, and retail. 
• The company has a strong presence in both traditional and emerging sectors, including a focus on digital services and green energy initiatives.
• Reliance is also investing heavily in renewable energy and sustainable technologies, positioning itself as a forward-looking conglomerate ready to lead in the new energy landscape.
   

Get more details about Reliance Industries Ltd share price today here.
Know the Reliance Industries Ltd share price history here.

7. GAIL (India) Ltd 

• GAIL (India) is the largest state-owned natural gas processing and distribution company in India.
• It operates in various segments of the natural gas value chain, including transportation, marketing, and processing.
• GAIL is also focusing on expanding its presence in the petrochemical sector and exploring opportunities in the renewable energy space, which aligns with its vision of sustainable growth and energy diversification.
   

Get more details about GAIL (India) Ltd share price today here.
Know the GAIL (India) Ltd share price history here.

8. Larsen & Toubro Ltd

• Larsen & Toubro Ltd was founded in 1938. It is a major player in engineering, procurement, and construction (EPC) across various sectors, including infrastructure, construction, and engineering services. It is involved in large-scale projects across industries such as power, water, and transportation.
• Larsen & Toubro has demonstrated strong financial performance with consistent revenue growth and profitability, driven by its diverse project portfolio and extensive market presence.
• The company aims to continue its leadership in the EPC sector, focusing on innovation, sustainable development, and expanding its global footprint through strategic projects and partnerships.

Get more details about Larsen & Toubro Ltd share price today here.

Know the Larsen & Toubro Ltd share price history here. 

9. Indian Oil Corporation Ltd 

• Indian Oil Corporation is a state-owned oil and gas company, and the largest commercial enterprise in India. 
• It operates across the entire hydrocarbon value chain, including refining, pipeline transportation, and marketing of petroleum products. 
• In addition to its traditional operations, Indian Oil is investing in research and development for alternative energy sources, such as biofuels and hydrogen, positioning itself to adapt to future energy demands and environmental challenges. 

Get more details about Indian Oil Corporation Ltd share price today here.

Know theIndian Oil Corporation Ltd share price history here. 

10. Bharat Petroleum Corporation Ltd

• Founded in 1952, this company is engaged in the refining and marketing of petroleum products, including fuels, lubricants, and natural gas. BPCL operates refineries and distribution networks across India and is involved in the exploration and production of oil and gas.
• Financial Performance: Bharat Petroleum has shown robust financial performance, supported by its extensive distribution network and strong market position in the energy sector.
• Goals: The company aims to enhance its refining and marketing capabilities, invest in new technologies, and contribute to India's energy security and sustainability goals.
   

Get more details about Bharat Petroleum Corporation Ltd share price today here.

Know theBharat Petroleum Corporation Ltd share price history here. 

Factors to Consider Before Investing in Green Hydrogen Companies in India:

Investing in green hydrogen stocks NSE in India or green energy shares might benefit investors. However, it is vital to take into account some key factors. These are the most important ones to consider:
 

• Government Policy:

Green hydrogen generation is still in its earliest phases. Investors should actively monitor government rules governing renewable energy options. In addition, green hydrogen companies may receive different rewards and subsidies.

• Demand:

The demand for green hydrogen companies and their growth are critical considerations. Thus, investors should check the demand for green hydrogen company's stocks and assess the long-term prospects of green hydrogen companies.

• Financial Performance:

It is critical to assess the financial performance of green hydrogen companies. Investors should thoroughly analyze the company's sales growth, profit margins, and cash flow

• Future Energy Source:

Investors should assess the environmental effect of green hydrogen manufacturing firms. Environmental issues are a major concern these days. So, companies with poor performance in this regard may have to face regulatory action, which impacts their overall performance.

• Policy and Regulatory Environment:

The regulatory landscape significantly impacts green hydrogen supplies in India. Awareness of supportive policies, subsidies, and regulatory frameworks is crucial in assessing the long-term viability and development potential of green hydrogen stocks listed on the NSE in India.

Features of Green Hydrogen Stocks in India

The following are the main features of green hydrogen stocks. 
 

• Production Methods

Green hydrogen energy reserves are interesting because they create energy while minimizing environmental impact. Electrolysis, which uses renewable energy sources like the sun and wind, is a contemporary technique for producing hydrogen. 
 

• Carbon Neutrality

Green hydrogen energy stocks in India are distinguished by their dedication to carbon neutrality. Companies try to reduce or offset their carbon footprint, contributing to global efforts to tackle climate change. 

• Technological Innovation

Green hydrogen stocks in India frequently invest in cutting-edge technology. Advanced electrolysis processes, effective storage solutions, and scalable production methods are new-age methods of producing green hydrogen.
 

• Strategic Partnerships

Successful green hydrogen stocks generally partner with energy businesses, governments, and technology suppliers. This improves the feasibility of green hydrogen projects.

What are the Advantages of Adding Green Stocks?

The advantages of investing in green hydrogen are as follows.

• Clean Environment in the Future

Investing in green hydrogen stocks contributes to cleaner, more sustainable energy. Your investments may help to reduce environmental pollution and prevent climate change. 

• Long-Term Gains

Investing in green hydrogen stocks has the potential for long-term development as the globe shifts toward greener energy solutions.

• Portfolio Diversification

Adding green hydrogen shares to your investing portfolio may diversify your holdings and minimize risk. It's a way to hedge your investments and boost stability.

What are the Challenges Ahead?

Although green hydrogen stocks have many advantages, there are also some challenges.
 

• Technology and Infrastructural Challenges

India's lack of technological innovation and infrastructure is the primary challenge to the large-scale production of green hydrogen. 

• High Costs

The cost of green hydrogen plants is another major problem. Some people believe that producing green hydrogen is expensive because of the hydrogen technology utilized in the electrolysis process.
 

• Competition From Fossil Fuels

Fossil fuels are still cheaper than hydrogen energy. However, growing awareness of their environmental effects may increase the demand for green hydrogen.  

Conclusion
Green hydrogen energy firms may perform well in the future. The need for renewable energy sources will increase as the energy requirement rises. Green hydrogen is an excellent option as its production methods are quite environmentally friendly. So, investing in green hydrogen stocks can offer long-term gains. However, before investing in these stocks, evaluate the uncertainties and potential for rewards. The high production costs and competition from fossil fuels are some challenges faced by the green hydrogen industry. Hence, proper research and understanding of the overall market are crucial. A good stock trading app shall allow you to keep track of all green hydrogen energy stocks. You may add all the stocks you want to follow to your watchlist.