List of Top Green Hydrogen Company Stocks on NSE India 2024

According to researchers, energy use has doubled in the last 20 years and is likely to grow by at least another 25% by 2030. Yes, you read that right. As a result, many countries are investing rapidly in renewable energy resources, and green hydrogen is one of them. Consequently, green hydrogen stocks India, its manufacturers, and green hydrogen energy in India are gaining popularity. Along with green hydrogen stocks of companies involved in producing, storing, and distributing green hydrogen have become increasingly popular among investors. 

In this blog, we are discussing popular green hydrogen stocks India and how they can be a potential investment. So, read on to learn more about the same. 

What are Green Hydrogen Stocks India?

Green hydrogen is a form of renewable energy. It is formed when water (H₂O) molecules are split into two chemical components: Hydrogen (H2) and Oxygen (O2). Thus, when we talk about green hydrogen, we mean hydrogen obtained without emitting pollution, i.e. sustainable hydrogen. A fuel already being hailed as the key to global decarbonisation and fulfilling climate change commitments by 2050.

Some of the cleanest energy sources are solar power, wind power, hydropower, geothermal energy, etc. 

Now, coming back to the question, green hydrogen energy stocks in the stock market refer to the stock of companies involved in producing, storing, and distributing green hydrogen. These green hydrogen companies stock in India use wind or solar power to power the electrolysis process for green hydrogen production. Therefore, the green hydrogen stock price is expected to grow rapidly in the coming years, with the global green hydrogen market projected to reach $11.7 billion by 2026.

Best Green Hydrogen Stocks in India 2024

Thus, let’s look at the popular green hydrogen stocks in India, with the green hydrogen share prices, that have been promising investments for many years. These hydrogen fuel companies listed in India have been ranked for educational purposes.  

Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data in the green hydrogen share price list is from 2nd April 2024. However, for real-time updates on stock prices and market trends, visit smallcase stocks collection today!

Top Green Hydrogen Plants in India | Top Green Hydrogen Companies in India: An Overview

Here is a brief overview of the top green hydrogen companies in India listed in NSE, from our curated educational list above: 

Reliance Industries

Reliance Industries has committed a substantial $10 billion investment in green hydrogen production over the coming decade. They are in the process of establishing a 1 GW green hydrogen facility in Jamnagar, Gujarat, with plans for it to be operational by 2025. This plant will rely on renewable energy sources to power its electrolyzers, responsible for hydrogen production. Reliance Industries is one of the largest green hydrogen manufacturers in India 

Oil and Natural Gas Corporation Ltd (ONGC)

Maharatna ONGC is India’s largest crude oil and natural gas Company, contributing around 71% to Indian domestic production. The company plans to invest around Rs. 800bn-850bn ($9.6bn-10.2bn) to develop a green ammonia production capacity of two million tonnes annually by 2035. This includes two projects, each aiming to produce one million tonnes per year, collaborating with partners like Greenko. These projects, part of a larger plan to establish green hydrogen and ammonia plants by 2027, require an estimated 4.5-5 GW of power for each project. ONGC’s broader strategy involves a Rs. 1 tn investment to set up 10 GW of renewable energy assets by 2030, focusing on wind, solar, and other renewable sources.

NTPC Ltd

NTPC Renewable Energy Ltd. is focusing on green hydrogen production, considering it crucial for India’s low carbon transition, aligned with the Paris climate accords. They’re exploring green hydrogen’s economic viability and technical integration through various pilot projects, including hydrogen mobility in Leh and Delhi, energy storage in Delhi NCR and Andhra Pradesh, hydrogen blending with natural gas in Western India, a green methanol project in Telangana, and green ammonia projects to substitute imported grey ammonia or for export. These initiatives aim to decarbonize various sectors and support India’s energy transition.

Adani Green Energy Ltd

Adani Green Energy generated an impressive operating revenue of Rs. 8,967.00 Cr. in the last 12 months, boasting an exceptional annual growth rate of 55%. The pre-tax margin stands at a commendable 18%, reflecting strong financial performance. Additionally, the return on equity (ROE) is a solid 19.55%. It is one of the best green hydrogen stocks India for 2024. 

Power Grid Corporation of India (PGRD)

The Power Grid Corporation of India generated an impressive operating revenue of Rs. 45,840.70 Cr. in the last 12 months. A robust 9% annual revenue growth is commendable, coupled with an excellent pre-tax margin of 39% and an exceptional return on equity (ROE) of 18%.

Indian Oil Corporation Ltd

Indian Oil Corporation generated an impressive operating revenue of Rs. 787.38 billion in the last 12 months, marking a remarkable annual growth of 43%. While the pre-tax margin stands at 2% and the return on equity (ROE) at 7%, there is room for improvement in both areas. It is one of the best green hydrogen stocks India for 2024. 

Adani Power Ltd

Adani Power (NSE) generated an impressive operating revenue of Rs. 42,002.59 Cr. in the last 12 months. Notably, the company achieved a remarkable annual revenue growth of 36%, boasted a strong pre-tax margin of 20%, and exhibited an exceptional ROE of 65%, making it the one the best hydrogen shares India.

Adani Energy Solutions Ltd

Adani Energy Solutions is engaged in engineering, construction management / operation and maintenance business. The Company’s businesses include engineering, procurement and construction (EPC) and Utilities. It is one of the best green hydrogen stocks in India. 

GAIL (India) Ltd

Gail (India) generated an impressive operating revenue of Rs. 134,865.45 Cr. in the last 12 months. The 56% annual revenue growth is noteworthy. However, there is room for enhancement in the pre-tax margin, currently at 4%. The ROE stands at a fair 8%, but improvement is possible. It is also one of the top hydrogen shares India on our list!

Adani Total Gas Ltd

Adani Total Gas boasts a robust trailing 12-month operating revenue of Rs. 4,371.99 Cr. Notably, the company has achieved an impressive 43% annual revenue growth, coupled with a commendable pre-tax margin of 16% and an exceptional ROE of 18%.

Factors to Consider Before Investing in Green Hydrogen Companies in India

Investing in green hydrogen companies in India or green energy stocks may be a promising opportunity for investors looking to capitalize on the growth potential of the clean energy industry. Here are some of the most important factors to keep in mind:

• Government Policies and Regulations: Investing in hydrogen-related stocks in India or renewable energy stocks in India presents a promising opportunity for those looking to capitalize on the clean energy industry’s growth potential. A critical factor for investors is the understanding of government policies and regulations. Green hydrogen production in India is in its nascent stages, making it essential for investors to stay informed about renewable energy policies, including the National Green Hydrogen Projects, alongside available incentives and subsidies for green hydrogen companies.
• Market Demand and Growth Potential: Another pivotal consideration is the market demand and growth potential for green hydrogen in India. Investors need to research the expected demand for green hydrogen stock in India thoroughly and evaluate the long-term growth prospects of green hydrogen companies in India. This factor is crucial in determining the viability and future success of investments in this sector.
• Financial Performance: Before making any investment, assessing the financial performance of green hydrogen companies in India is imperative. Reviewing financial statements, including metrics such as revenue growth, profit margins, and cash flow, will aid investors in making informed decisions.
• A Viable Alternative Energy Source: The drive to invest in green hydrogen companies in India is often fueled by the desire to positively affect the environment. Therefore, it is vital for investors to evaluate the environmental impacts of the green hydrogen producing companies in India stocks they are considering for investment.

Features of Green Hydrogen Stocks India

Green hydrogen stocks in India NSE represent a burgeoning sector at the forefront of sustainable energy. Understanding their distinctive features is crucial for informed investment decisions.

Production Methods

Green hydrogen fuel stocks in India derive their appeal from environmentally friendly production methods. Electrolysis powered by renewable energy sources, such as solar and wind, distinguishes them from conventional hydrogen production.

Carbon Neutrality

A defining feature of green hydrogen fuel stocks India is the commitment to carbon neutrality. Companies in this sector strive to minimise or completely offset their carbon footprint, contributing to global efforts to combat climate change.

Technological Innovation

Innovation is a cornerstone of the green hydrogen sector in India, with companies investing in advanced electrolysis techniques, efficient storage solutions, and scalable production methods. These innovations highlight the sector’s drive towards enhancing the efficiency and viability of green hydrogen as an energy source.

Strategic Partnerships

The formation of strategic partnerships with energy companies, governments, and technology providers plays a significant role in the scalability and success of green hydrogen initiatives. These collaborations are pivotal in overcoming industry challenges and achieving long-term objectives.

Policy and Regulatory Environment

The regulatory landscape significantly impacts green hydrogen related stocks in India. Awareness of supportive policies, subsidies, and regulatory frameworks is vital for assessing the long-term viability and growth potential of these green hydrogen stocks in India.

Market Dynamics

A thorough understanding of market dynamics is essential for successful investment in hydrogen-related stocks. Factors such as global demand, competition, and geopolitical influences are key determinants of the performance of green hydrogen stocks in India.

National Green Hydrogen Mission

As India’s growth story unfolds, its demand for energy and resources is set to rise. With a goal to become energy-independent by 2047 and achieve Net Zero emissions by 2070, the National Hydrogen Mission will be acting as a catalyst for new opportunities.

In India, the National Green Hydrogen Mission promotes the development and use of green hydrogen. Furthermore, as a part of the National Budget 2023, India’s National Green Hydrogen Mission has received INR 19,700 crore to promote the use of hydrogen as a clean and renewable energy source.

Additionally, the main objective is to increase hydrogen production and reduce dependence on fossil fuels. Therefore, to achieve this, the mission promotes the development of technologies that produce hydrogen, such as hydrolysis, steam methane reforming, and biomass gasification. 

Hence, the Mission is expected to facilitate the deployment of the Green Hydrogen ecosystem and renewable energy by creating opportunities for innovation, investments and economic growth.

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What are the Advantages of Adding Green Stocks to Your smallcase Portfolio?

Thus, there are several advantages to adding green hydrogen stocks in India to your portfolio or you can simply do portfolio investing on smallcase platform. Now, let’s have a look at the benefits: 

• Growth Potential: The demand for clean energy is increasing as more countries and businesses commit to reducing their carbon footprint. As a result, the demand for green hydrogen stocks in India is expected to grow rapidly in the coming years, which could lead to significant opportunities.
• Diversification: Adding green hydrogen stocks in NSE to your portfolio may help diversify your investments, which can help reduce risk. This is because green hydrogen investments are likely less correlated with other assets in your portfolio, such as green hydrogen stocks or bonds.
• Environmental Benefits: Green hydrogen stocks in India support transitioning to a more sustainable and environmentally friendly energy system. Thus, by investing in companies that produce or use green hydrogen, you are potentially contributing to the development of a low-carbon economy.
• Innovation and Technological Advancements: Investing in green hydrogen-related stocks in India can support the development of new technologies and innovations in the energy sector. Hence, this can lead to new investment opportunities as companies develop and commercialize new products and services.

What are the Challenges Ahead?

The adoption of green hydrogen faces several challenges, which can be viewed as opportunities for innovation and growth in the industry. 

High Costs

For some, the production of green hydrogen can be viewed as expensive due to the hydrogen technology used in the electrolysis process. However, with increased demand and technological advancements in the industry, there will be cost reductions with increased efficiency.

Limited Infrastructure

The infrastructure for storing, transporting, and distributing green hydrogen is not yet well-developed. However, it is an opportunity for green hydrogen companies India to invest in new infrastructure (such as pipelines and storage facilities), creating new jobs, and economic growth.

Competition from Fossil Fuels

Though fossil fuels remain cheaper than green hydrogen, they are harmful in the long run. Thus, increasing awareness about the environmental impacts of fossil fuels presents an opportunity for green hydrogen to become a more competitive option in the long run.

Regulation and Policy

Regulations and policies surrounding the production and use of green hydrogen are still in their early stages. However, this presents an opportunity for policymakers to work collaboratively with industry leaders to incentivize the growth of the green hydrogen industry.

How To Identify The Best Green Hydrogen Stocks In India For Investing?

Investing in green hydrogen, a key component of India’s renewable energy strategy, requires discernment and strategic analysis. Here’s how you can identify promising green hydrogen stocks:

1. Understand the Industry: Gain a solid understanding of green hydrogen and its applications across various sectors such as fertilisers, steel, and mobility.

2. Research Companies: Look for companies actively involved in the production or use of green hydrogen. Assess their technological capabilities and innovations.

3. Financial Analysis: Evaluate the financial stability of these companies through their financial statements focusing on profitability, revenue streams related to green hydrogen, and overall financial health.

4. Government Policies: Analyse the impact of Indian government initiatives like the National Hydrogen Mission which might influence sector growth and bring potential subsidies and incentives for companies.

5. ESG Factors: Consider Environmental, Social, and Governance (ESG) ratings to ensure sustainable and responsible investing.

6. Industry Collaborations: Check for strategic partnerships that could provide technological advancements and market expansion opportunities.

7. Sector Outlook and Expert Opinions: Reflect on the long-term growth potential of the sector and consult industry analysts’ forecasts and stock recommendations.

Identifying the best green hydrogen stocks involves a thorough market analysis, understanding of policy landscape, and evaluation of company fundamentals. Investors should stay informed and possibly consult with professionals to navigate this emerging but promising sector.

Who Should Invest In Green Hydrogen Sector Stocks?

Investing in green hydrogen sector stocks is particularly suited for a specific investor profile due to the unique characteristics and stage of the industry. Here’s who should consider investing:

• Long-term Investors: Those who have a long investment horizon can benefit from green hydrogen’s potential for significant growth as the technology matures and becomes more commercially viable.

• Risk-Tolerant Investors: Given the emergent nature of the green hydrogen sector, it entails higher volatility and risk. Investors who can withstand potential downturns and have a higher risk appetite are well-positioned for such investments.

• ESG-focused Investors: Individuals or institutions looking to bolster their portfolios with environmentally sustainable investments will find green hydrogen stocks align well with their goals. These stocks contribute directly to reducing carbon footprints and advancing renewable energy technologies.

• Diversified Investors: Those seeking to diversify their portfolios across different energy sources, especially in renewable and future technologies, can use green hydrogen stocks to broaden their investment landscape.

To Wrap It Up…

To conclude, green hydrogen is gaining attention as a clean energy source that can contribute to a sustainable future. Therefore, governments worldwide are prioritizing decarbonization and renewable energy, resulting in the rise of green hydrogen share price India. Thus, by investing in green hydron stocks at smallcase, individuals can benefit from potential financial gains and contribute to a cleaner and more sustainable future.

Go green with smallcase today!

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