In India’s clean energy narrative, green hydrogen is gradually establishing its presence as the country attempts to decrease its dependence on foreign fuels and reduce emissions. Green hydrogen is expected to be one of the long-term practical alternatives for sectors where renewable electricity by itself will not be enough. With strong government backing, it is transitioning from a planning stage to operational activity, thus creating investment opportunities for those interested in the growth potential of India’s energy future.
In this blog, we will explore how green hydrogen is emerging as a key pillar in India’s clean energy transition and the investment opportunities it presents as government support turns long-term plans into real, on-ground progress.
What is Green Hydrogen?
Green hydrogen is a type of hydrogen fuel that is made from renewable energy sources like solar or wind power. It does not produce any carbon emissions when it is made, which is better for the environment.
The process is easy. Electricity converts water (H₂O) into hydrogen and oxygen. This process is called electrolysis . Green hydrogen comes from renewable sources of electricity. The oxygen is released into the air, and the hydrogen is stored and used as fuel later.
Why Do They Call It “Green”? The process is clean and therefore called green hydrogen. There are no fossil fuels used, and no harmful gases are released.
An Overview of the Green Hydrogen Industry in India
By 2047, India wants to be energy-independent and have net-zero emissions. To do this, we need to cut down on pollution and fossil fuel imports. Green hydrogen fits this vision perfectly because it is a clean alternative to traditional renewable energy.
India is also looking into producing hydrogen from biomass, like agricultural waste. This could help farmers and boost rural incomes at the same time.
One of the most important things about green hydrogen is that it can help clean up sectors that are hard to decarbonize. Electricity alone does not always provide industries like steel, fertilizers, chemicals, and heavy transport the fuel they need. Green hydrogen is a cleaner choice here.
India can make hydrogen from its own renewable resources, which will help the country depend less on oil and gas from other countries. This makes the energy system less likely to be affected by sudden changes in global prices.
The government has initiated the National Green Hydrogen Mission with a substantial funding of 19,744 crores, aiming for a production capacity of 5 million tonnes per annum to accelerate progress. The goal is to build large-scale production capacity, encourage involvement of private companies, and position India as a global hub for green hydrogen in the future.
Read Also: Top Green Building Material Stocks in India
List of Best Green Hydrogen Stocks Based on Market Capitalisation
| S. No. | Company | CMP (In INR) | Market Capitalization (In Crores) | 52-Week High (In INR) | 52-Week Low (In INR) |
|---|---|---|---|---|---|
| 1 | RELIANCE | 1,545 | 20,90,903 | 1,581 | 1,115 |
| 2 | LARSEN & TOUBRO | 4,060 | 5,58,685 | 4,140 | 2,965 |
| 4 | NTPC | 321 | 3,11,505 | 371 | 293 |
| 3 | ONGC | 233 | 2,92,944 | 274 | 205 |
| 6 | INDIAN OIL CORPORATION | 168 | 2,37,647 | 174 | 111 |
| 7 | POWER GRID CORPORATION | 261 | 2,42,746 | 329 | 247 |
| 5 | ADANI GREEN | 1,021 | 1,68,202 | 1,179 | 758 |
| 9 | BHARAT PETROLEUM | 368 | 1,59,917 | 382 | 234 |
| 8 | GAIL INDIA | 169 | 1,11,178 | 203 | 151 |
| 10 | JSW ENERGY | 475 | 83,002 | 701 | 419 |
Overview of Top Green Hydrogen Companies
1. Reliance
As part of its clean energy plans, Reliance is making significant investments in green hydrogen. The company intends to develop everything internally, including hydrogen production, electrolyser manufacturing, and renewable energy. Reliance wants to make green hydrogen widely available and reasonably priced in the long run, not just as a test project.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.86% | 25.90% | 62.06% |
2. Larsen & Toubro
L&T doesn’t make hydrogen directly, but it does a considerable amount of significant operations behind the scenes. The company uses its engineering and project management skills to build hydrogen plants, electrolysers, and infrastructure. L&T is a key supplier and technology partner in the green hydrogen ecosystem in India, so it will benefit as more green hydrogen projects get started.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 12.25% | 98.11% | 223.09% |
3. NTPC
NTPC is gradually transitioning to green hydrogen through renewable energy-related pilot projects. It is exploring the potential applications of hydrogen in transportation, power generation, and storage. NTPC is adopting a steady and long-term approach due to its significant renewable resources and strong government support.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -2.86% | 98.83% | 228.87% |
4. Oil & Natural Gas Corporation
By exploring green hydrogen and renewable energy sources, ONGC intends to go beyond oil and gas. Reducing emissions and getting ready for a cleaner future are the goals. The change shows that even conventional energy companies are gradually adjusting to the energy transition.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -1.83% | 69.13% | 160.41% |
5. Indian Oil Corporation
Green hydrogen is primarily being considered by Indian Oil as a means of improving refinery operations. To reduce emissions, the company is installing hydrogen units that function on renewable energy. IOC may eventually rank among India’s biggest consumers of green hydrogen due to its extensive refining network.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 18.79% | 124.21% | 178.49% |
6. Power Grid Corporation
Power Grid plays a more invisible but significant role in green hydrogen. Strong transmission infrastructure becomes crucial as hydrogen production and renewable energy grow. Additionally, hydrogen-based energy storage is being tested by the company.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -14.86 | 69.43% | 151.24% |
7. Adani Green Energy
Adani Green’s main goal is to build a significant number of solar and wind power plants, which will help the Adani Group’s green hydrogen plans. The company is building up its renewable base first, instead of jumping right into producing hydrogen. This combined approach could be very important for making hydrogen production possible on a large scale.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -1.46% | -43.64% | -2.44% |
8. Bharat Petroleum Corporation
As part of its shift to clean energy, BPCL is testing green hydrogen at its refineries. These projects are still in the planning stages, but they exhibit that they want to cut down on emissions and reduce their dependence on fossil fuels.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 28.24% | 128.08% | 98.05% |
9. Gail India
GAIL is primarily investigating green hydrogen from the perspective of distribution and transportation. It is investigating the safe transportation of hydrogen and testing the blending of hydrogen in gas pipelines. In the future, GAIL’s vast pipeline network may play a significant role in connecting hydrogen producers and industrial consumers.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -11.22% | 88.09% | 118.44% |
10. JSW Energy
JSW Energy is closely monitoring green hydrogen prospects and expanding its renewable portfolio. The company is investigating possible applications of hydrogen in energy storage and industrial applications. Its emphasis on clean energy and group-level demand gives it a good reason to look into this domain.
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -26.50% | 91.41% | 603.19% |
Read Also: Best Hydropower Stocks in India
Key Performance Indicators
| S. no | Company | ROE (in %) | ROCE (in %) | Debt-to-Equity | P/E (x) |
|---|---|---|---|---|---|
| 1 | RELIANCE | 8.4 | 9.69 | 0.43 | 27.6 |
| 2 | LARSEN & TOUBRO | 16.6 | 14.5 | 1.32 | 34.9 |
| 3 | NTPC | 12.1 | 9.95 | 1.33 | 13.1 |
| 4 | ONGC | 10.6 | 12 | 0.48 | 8 |
| 5 | INDIAN OIL CORPORATION | 6.51 | 7.36 | 0.74 | 9.41 |
| 6 | POWER GRID CORPORATION | 17 | 12.8 | 1.37 | 16.1 |
| 7 | ADANI GREEN | 14.6 | 8.7 | 4.52 | 76.8 |
| 8 | BHARAT PETROLEUM | 17.3 | 16.2 | 0.56 | 7.38 |
| 9 | GAIL INDIA | 13.1 | 14 | 0.25 | 12.4 |
| 10 | JSW ENERGY | 7.41 | 6.49 | 2.37 | 41.3 |
Reasons to Invest in Green Hydrogen Stocks
- Early-stage opportunity – Green hydrogen is still developing, which means long-term investors are getting in early rather than chasing an already successful trend.
- Strong government Support – India is actively supporting green hydrogen through policies and long-term targets, giving the sector a growth direction.
- Export potential in the future – As global demand grows, India could become a supplier of green hydrogen, creating new growth opportunities.
- Portfolio diversification – Green hydrogen stocks offer diversification to your portfolio and exposure to a future-oriented energy theme, which is a bit different from traditional sectors.
Conclusion
India’s green hydrogen journey has just begun and will need time to develop. This investment theme is not likely to provide instant returns. Rather, it is a theme that demands patience for the results we want. However, with adequate government support and policies in place, green hydrogen should grow in both industrial consumption and through the entry of developed companies. If you believe that India will eventually transition to clean energy, investing in green hydrogen stocks represents an opportunity to participate in this transformation over the longer term.
Frequently Asked Questions (FAQs)
Why is green hydrogen important for India?
It helps reduce carbon emissions, cut fuel imports, and support India’s clean energy goals.
Is green hydrogen a short-term investment option?
No, it is a long-term investment theme that may take years to fully develop.
Which sectors will use green hydrogen the most?
Steel, cement, fertilisers, refineries, and heavy transport are expected to use hydrogen the most.
How does green hydrogen differ from solar or wind energy?
Hydrogen can store energy and power heavy vehicle industries where direct electricity is not practical.
Can retail investors invest in green hydrogen stocks?
Yes, with long-term view and proper portfolio diversification, investors can invest.
