Chemicals Manufacturer Sadhana Nitro Chem to Set Up Green Hydrogen Facility
After meeting its captive needs, the company plans to sell surplus hydrogen
Specialty chemicals manufacturer Sadhana Nitro Chem will set up a green hydrogen facility based on a solar and wind project with a 15-20 MW capacity, primarily for captive use.
To fund the solar and wind projects, the company is planning rights issue at ₹121 (~$1.45) per share to raise a total of ₹49 million (~$5.9 million).
The funds raised through the rights issue will be used to acquire a 126-acre plot to establish the solar and wind projects. The harnessed energy from these projects will, in turn, be used to produce green hydrogen through water electrolysis.
This green energy expansion offers the company the strategic advantage of backward integration, with control over its energy supply. The green hydrogen produced at this facility is primarily for captive usage for the current plant and the expansion of para-aminophenol production.
Any surplus green hydrogen produced will be made available for sale to external parties.
“The decision to venture into green energy aligns seamlessly with our commitment to environmental stewardship and operational excellence. This initiative demonstrates our dedication to sustainable growth and leveraging innovative solutions to address energy needs,” said Abhishe Javeri, Sadhana Nitro Chem Managing Director.
“This facility, boasting a capacity of 15 MW-20 MW, marks a significant milestone in our journey towards sustainability and innovation within the realm of intermediate specialty chemicals manufacturing,” he said.
Union Minister for Power and New & Renewable Energy R K Singh had highlighted the importance of green hydrogen in India’s plans to reach 500 GW of non-fossil fuel capacity by 2030 and developing energy storage solutions.
According to a recent report by the United States Agency for International Development, to meet its 2030 green hydrogen demand, India requires an investment of $56 billion.
Recently, the Solar Energy Corporation of India (SECI)’s tender to set up 450,000 metric tons (MT)/annum production facilities for green hydrogen and 1.5 GW of electrolyzer manufacturing capacities across India has received an overwhelming response from industry majors.