Best Green Hydrogen Stocks in October 2024 Based on 5Y CAGR

India’s green hydrogen sector currently lacks a comprehensive statewide pipeline infrastructure. Learning from Europe’s European Hydrogen Backbone project, India could leverage its existing gas network to establish a dedicated hydrogen transport system.

Global green hydrogen production reached around one million metric tons between 2015 and 2018. Produced from renewable energy sources, green hydrogen contrasts with blue hydrogen, which is made from fossil fuels but captures and stores emissions. Blue hydrogen production is expected to soar to 80 million metric tons by 2050, assuming continued government support for cleaner fuels.

Best Green Hydrogen Stocks in October 2024 – Based on 5Y CAGR

Note: The stocks mentioned above have been selected and sorted based on 5Y CAGR as of October 8, 2024

Overview of 5 Green Hydrogen Stocks

• Adani Green Energy Limited: Incorporated in 2015, Adani Green Energy Limited is a holding company of several subsidiaries that operate renewable power generation businesses within the group. It is primarily involved in renewable power generation and other ancillary activities. During Q1 FY25, Adani Green operationalised a wind power capacity of 250 MW at Khavda. The plant is equipped with India’s largest and one of the world’s most powerful onshore wind turbine generators, with a 5.2 MW rated capacity.

Key Metrics:

• Return on Equity (ROE): 17.1%
• Return on Capital Employed (ROCE): 9.81%
• JSW Energy Limited: JSW Energy Ltd and its subsidiaries are primarily engaged in the business of generation of power from its power assets located at Karnataka, Maharashtra, Nandyal and Salboni. It is the holding company for the JSW group’s power business. During Q1 FY25,  the net capacity addition stood at 4.2 GW post-retiral of 200 MW of thermal capacity. This is compared to 5.8 GW of net capacity addition in Q1 FY24. 

Key Metrics:

• ROE: 8.40%
• ROCE: 8.59%
• Adani Power  Ltd: Adani Power (APL) along with its subsidiaries sell power generated from these projects under a combination of long-term Power Purchase Agreements, Short-term PPA and on a merchant basis. The operating revenue for Q1 FY25 grew by 29% to ₹14,717 crores as compared to ₹11,370 crores in Q1 FY24. Continuing total revenue grew by 30% to ₹15,052 crores in Q1 FY25 as compared to ₹ 11,612 crores in Q1 FY24.

Key Metrics:

• ROE: 6.09%
• ROCE: 4.98%
• Tata Power Company Ltd: Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources. It also manufactures solar roofs and plans to build 1 lakh EV charging stations by 2025. 

Key Metrics:

• ROE: 11.3%
• ROCE: 11.1%
• Adani Energy Solutions Ltd: Adani Energy Solutions Ltd, part of the Adani portfolio, is a multidimensional organization with a presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. During Q1 FY25, the company completed the acquisition of Mahan Sipat transmission assets thereby adding 673 ckm to its operational network.

Key Metrics:

• ROE: 8.59%
• ROCE: 9.00%

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.