Nayara Energy to Explore Green Hydrogen Expansion

Nayara Energy joined hands with NTPC Green Energy Limited (NGEL) to sign a Memorandum of Understanding(MoU) to explore the business opportunities in the green hydrogen space on 11th September 2023 in the presence of Amar Kumar, technical head of Nayara Energy and Mohit Bhargava, CEO of NTPC Green Energy Limited, as well as other senior officials.

The main reason behind exploring green hydrogen space for Nayara Energy is to collaborate with NTPC's vision of initiating hydrogen projects in India. Additionally, it sets an alignment with the Indian government's vision of “Atmanirbhar Bharat.”In this blog, we will discuss the future business plans of Nayara Energy regarding growth in the Green hydrogen space.

Nayara Energy: Steps Towards Green Hydrogen Energy

In 2020, at the global level, hydrogen demand reached an average of 87 million metric tons. For the coming year of 2050, it can grow to the level of more than 500 million metric tons. Nayara Energy invests in the technology of green hydrogen as it targets multiple sectors, such as power generation, steelmaking, cement production, transport, and electricity grid stabilisation.

Nayara Energy has the second largest site for refineries that clear the path for huge production in future. Investing in the technology can provide an edge to Nayara Energy to make an early start in the green hydrogen industry in future. It can be predicted that Nayara Energy's Share Price will fluctuate after the outbreak of collaboration news.

How Will Nayara Energy Add Value With Green Hydrogen Shift?

Green hydrogen demand will shape the future and create a new market segment for companies to expand. Nayara Energy took a strategic move to invest in the research of green hydrogen space with NTPC Green Energy Limited. It will unlock the path of expansion, and a robust climatic support vision of projects might attract high investments.

Nayara Energy works on the path to develop sustainable petrochemicals to match international demand. The vision of providing chemicals to crude, shifting towards the area of green hydrogen can gear up the future trends. The company has already established state-of-the-art refineries for petroleum, and collaboration with NTPC Green Energy Limited will help in building a sustainable ecosystem in future.

Future Vision Of Nayara Energy & NTPC

NGEL & Nayara Energy are well-established companies that contribute towards energy production. Moving towards the growth perspective, by the end of 2032, NTPC is planning to install 60 gigawatts (GW) of RE capacity. Additionally, it is also working on the model of a pipeline of more than 20 GW( 3 GW for operational capacity)

On the other hand, Nayara Energy already owns India’s second-largest single-site refinery located at Vadinar, Gujarat. It can yield a production capacity of 20 million tonnes per annum (MTPA). Currently, Nayara Energy has more than 6,000 operational outlets for retail across India.

Will Entry into the Green Energy Sector Help Nayara Energy In the Unlisted Share Market?

Moving to financial terms, let’s dig into the history, Nayara Energy was formerly known as Essar Oil Limited before 2017. Essar Oil Limited was officially delisted in 2015-16, the final Essar oil share price was Rs 262.80. Post-delisting, the company repositioned the brand to expand its network in the energy industry.

Nayara Energy's net profit for the year 2022-23 was Rs. 95,916 million. In 2021-22, the estimated amount of net profit was Rs. 10,299 million, there is a high jump of growth. Nayara Energy unlisted shares price was Rs. 199 per equity share in Oct 2022 which increased to Rs. 300 per equity share in September 2023.

Currently, Nayara's share price in the unlisted market is Rs. 294 in November 2023. It will be hard to predict the movement in prices, however, investors will show a keen interest in Nayara's unlisted shares after the MoU with NTPC. However, after the MoU for green hydrogen with NGEL, Nayara Energy's Share Price will fluctuate as the market perceives the announcement positively.

Green Hydrogen Indian Market: Is it Favourable for Nayara Energy?

Recently, India announced the National Hydrogen Mission to build a sustainable eco-friendly infrastructure. Indian government planning to invest Rs. 400 crore for research on national green hydrogen mission. The roadmap will focus on developing an efficient and reliable cost-effective green hydrogen ecosystem to ease the production, transportation and storage.

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Nayara Energy is heading towards building a long-term vision through green hydrogen opportunities. It shows active research & development and growth stability. Investing into growing unlisted shares like Nayara Energy can scale up the investor portfolio.

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FAQs

1. Will the green hydrogen projects have a future in India?

The Government of India affirms the decision to create India, a hub of green hydrogen. Currently, two buses are running on trial using clean fuels.

1. How does NGEL & Nayara Energy collaboration contribute to R & D?

Both giant companies have enough resources to expand into a new segment of green hydrogen. Also, the vision for creating an energy ecosystem aligns together contributing to strong research & development.

1. What is the aim of collaboration for green hydrogen expansion?

Nayara Energy & NGEL aim to scale decarbonisation and catalyse reduction in carbon footprint. Green hydrogen encourages natural energy production.

1. What is the current Nayara Energy Share Price for unlisted shares?

At present, you can buy unlisted shares of Nayara Energy at Rs. 294 per share.

1. What is the current cost of producing green hydrogen in India?

Currently, the cost of production for green hydrogen in India is around Rs. 300 per kg.