Key brokerage house, Nuvama Institutional Equities expects Reliance Industries and Waaree Energies to be key beneficiaries in the green energy sector after the Solar Energy Commission of India awarded Tranche-II of the National Green Hydrogen mission. The brokerage has a Buy call on both the stocks.
Nuvama has Buy on Waree Energies and Reliance Industries
Waaree, L&T, Green Infra and AM Green have won maximum capacity under SIGHT Tranche-II for GH2 production. GH2 is a type of green hydrogen that is produced from a renewable source of energy or from a source that produces very low carbon emissions. The incentive awarded to Reliance Industries and Waaree Energies stands at Rs 25/kg and Rs 19/kg, respectively, higher than the average incentive. This makes it the key beneficiary.
Green hydrogen push: Nuvama recommends Buy on Waree Energies and Reliance Industries
The Solar Energy Commission of India issued LoAs to winners for green Hydrogen production tenders for 450 tonnes per annum (tpa) GH2 manufacturing capacities under the SIGHT programme in Mode-1 (least average incentive demanded) Tranche-II of the National GH2 Mission.
ALSO READReliance Green, L&T Energy, Waaree among 9 to win Hydrogen projects
In Tranche-II, the average incentive amount is less than Tranche-I at Rs 17/kg forming 5% of the current estimated GH2 cost versus Rs 27/kg forming 10% of the estimated GH2 cost.
Under this programme Waaree Energies, L&T, Green Infra and AM Green were the biggest gainers—each winning 90,000 tpa of GH2 manufacturing capacity—followed by Reliance Industries, which was awarded 49,000 tpa.
Reliance Industries’ total capacity
If the capacity of both tranches is added then RIL is awarded the highest at 139,000 tpa followed by other companies at 90,000 tpa, including Waaree Energies. However, there’s a catch, the companies need to commission awarded capacities within a period of 36 months to avail of SIGHT incentives. The Adani group has not bid for GH2 but has won 300 MW of electrolyser capacity. “Given Reliance Industries is one of the world’s largest producers and consumers of grey H2, transition to GH2 shall enable it to improve margins in future,” said Nuvama.
ALSO READAdani Energy bags Rs 2.8K crore transmission project in Gujarat Government’s push on Green energy
The Government of India carved out a plan of Rs 19,700 crore for the Hydrogen Mission 2030. Out of this,
» Read More
