Best Green Hydrogen Stocks in India

In the rapidly evolving landscape of sustainable energy, green hydrogen has emerged as a promising solution to India's clean energy transition. As the country aims to reduce carbon emissions and strengthen its energy independence, numerous companies are making significant investments in green hydrogen technology. This article explores the best green hydrogen stocks in India, offering valuable insights for investors looking to capitalise on this growing sector.

Green Hydrogen Industry in India - A Brief Overview

Green hydrogen, produced through the electrolysis of water using renewable energy sources, represents a key component of India's strategy to achieve net-zero emissions. Unlike grey or blue hydrogen, which are derived from fossil fuels, green hydrogen generates zero carbon emissions during production.

India's green hydrogen journey gained momentum in 2021 when the government announced the National Hydrogen Mission, setting an ambitious target of producing 5 million tonnes of green hydrogen annually by 2030. This strategic initiative aims to transform India into a global hub for green hydrogen production and export.

The Indian green hydrogen market in India is likely to reach ~$30n-35 bn/yr by 2035 - 2040. This remarkable growth trajectory is fuelled by:

• Declining costs of renewable energy, particularly solar power

• Increasing government support through policies and incentives

• Growing emphasis on decarbonisation across industrial sectors

• Rising investments from both public and private entities

Recent developments include the approval of the ₹19,744 crore National Green Hydrogen Mission by the Union Cabinet in January 2023, which aims to make India a global hub for the production, utilisation, and export of green hydrogen and its derivatives. The mission further got a significant budgetary outlay of Rs. 600 crore (US$ 71.93 million) during the Union Budget of 2024-25.

Top Green Hydrogen Stocks in India (2025) by Market Capitalisation

The green hydrogen sector in India features several prominent players, ranging from energy conglomerates to renewable energy specialists. Here's a comprehensive table of the top green hydrogen stocks in India by market capitalisation:

Note: Market capitalisations are approximate and based on April 2025 data. Market capitalisation equals the number of free float shares* current market price of the stock

Overview of Best Green Hydrogen Stocks in India

• Reliance Industries (RELIANCE)

Reliance Industries, led by Mukesh Ambani, has positioned itself as a frontrunner in India's green hydrogen ecosystem. The company announced plans to invest ₹75,000 crores in green energy initiatives, with a significant portion allocated to green hydrogen development.

Future Plans: Reliance aims to become a net carbon-zero company by 2035 and is developing the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar, Gujarat. This facility will house an integrated solar photovoltaic module factory, an advanced energy storage battery factory, and an electrolyser factory for green hydrogen production.

Key Growth Drivers:

• Development of low-cost electrolysers

• Integration with existing petrochemical infrastructure

• Strategic partnerships with global technology providers

• Potential applications across its diversified business segments

Reliance recently commissioned one of India's largest green hydrogen plants in Jamnagar with a capacity of 5.8 tonnes per day, demonstrating its commitment to scaling up green hydrogen production rapidly.

• NTPC Limited (NTPC)

As India's largest power generation company, NTPC has made significant strides in the green hydrogen space, leveraging its extensive experience in energy production.

Future Plans: NTPC plans to establish the country’s largest green hydrogen plant with a capacity of 1200 tonnes of green hydrogen per day. The company is developing green hydrogen projects at its renewable energy sites and aims to produce green hydrogen at less than $2 per kilogram by 2025-26.

Key Growth Drivers:

• Vast renewable energy portfolio providing low-cost electricity for electrolysis

• Multiple pilot projects across different locations

• Strong government backing as a public sector enterprise

• Cross-sectoral applications, including green ammonia production

NTPC's pilot projects in Ladakh and Vishakhapatnam demonstrate its technological capabilities and commitment to advancing green hydrogen solutions across diverse geographical conditions.

• Power Grid Corporation (POWERGRID)

Power Grid Corporation, India's largest electric power transmission utility, is strategically positioned to play a crucial role in green hydrogen infrastructure development.

Future Plans: The company is investing in hydrogen transportation networks and plans to develop specialised grid infrastructure for green hydrogen production facilities. Power Grid is also exploring the integration of hydrogen energy storage systems with its existing transmission networks.

Key Growth Drivers:

• Expertise in energy transmission and distribution

• Development of hydrogen pipeline networks

• Smart grid solutions for renewable energy integration

• Potential for hydrogen-based energy storage systems

Power Grid's experience in managing complex energy transmission systems provides it with a unique advantage in addressing the logistical challenges associated with green hydrogen distribution.

• Indian Oil Corporation (IOC)

Indian Oil Corporation, India's largest oil refining and marketing company, has been actively exploring green hydrogen opportunities to diversify its energy portfolio.

Future Plans: IOC aims to establish green hydrogen production capacity of 1 million tonnes per annum by 2040. The company is setting up green hydrogen plants at its Mathura and Panipat refineries and plans to use green hydrogen for refining processes.

Key Growth Drivers:

• Existing network of refining and distribution infrastructure

• Research and development of hydrogen fuel cell technology

• Pilot projects for hydrogen-powered mobility solutions

• Blending hydrogen with compressed natural gas (H-CNG)

IOC's pilot project in Delhi, which involves fuelling buses with hydrogen-spiked compressed natural gas, demonstrates its practical approach to implementing hydrogen solutions in the transportation sector.

• Adani Green Energy (ADANIGREEN)

Adani Green Energy, one of India's largest renewable energy companies, is leveraging its substantial solar and wind power portfolio to venture into green hydrogen production.

Future Plans: The Adani Group has announced a massive $70 billion investment in green energy initiatives over the next decade, with green hydrogen as a key focus area. The company aims to produce the world's least expensive green hydrogen and is planning to establish a 2.5 million tonnes per annum green hydrogen production capacity by 2030.

Key Growth Drivers:

• Extensive renewable energy portfolio providing low-cost electricity

• Strategic partnerships with global technology providers

• Integrated approach covering production, storage, and distribution

• Export potential targeting markets in East Asia and Europe

Adani's recent collaboration with TotalEnergies for green hydrogen production showcases its ability to attract global investments and expertise to accelerate its green hydrogen initiatives.

Benefits of Investing in Green Hydrogen Stocks in India

Investing in green hydrogen stocks offers several compelling advantages:

• First-Mover Advantage

The green hydrogen sector in India is still in its nascent stage, providing early investors with the opportunity to benefit from first-mover advantages. Companies establishing themselves as pioneers in this space are likely to secure significant market share and industry recognition.

• Government Support and Incentives

The Indian government has demonstrated a strong commitment to the green hydrogen sector through various initiatives:

• Production-Linked Incentive (PLI) schemes for electrolyser manufacturing

• Viability Gap Funding for green hydrogen production

• Waiver of interstate transmission charges for green hydrogen projects

• Mandates for green hydrogen consumption in specific industries

These supportive policies create a favourable environment for companies operating in this space, potentially enhancing their profitability and growth prospects.

• Multiple Revenue Streams

Green hydrogen companies often operate across various segments of the value chain, including:

• Electrolyser manufacturing and technology development

• Hydrogen production and storage solutions

• Fuel cell development and applications

• Integration with existing industrial processes

This diversification provides multiple revenue streams and reduces dependence on any single market segment.

• Export Potential

India's strategic location and cost advantages position it favourably to become a global green hydrogen export hub, particularly to markets in Asia, Europe, and the Middle East. Companies building export capabilities could benefit from the growing international demand for green hydrogen.

• Long-Term Growth Trajectory

The green hydrogen sector is projected to witness substantial growth over the coming decades as industries worldwide transition to cleaner energy sources. This long-term growth trajectory offers sustained investment opportunities beyond short-term market fluctuations.

Factors to Consider Before Investing in Top Green Hydrogen Stocks

While the potential of green hydrogen stocks is significant, prudent investors should consider several factors before making investment decisions:

• Technology Readiness and Scalability

Assess the technological maturity of a company's green hydrogen solutions and its ability to scale operations cost-effectively. Companies with proven technologies or clear pathways to commercialisation may present lower investment risks.

• Cost Economics

The current cost of green hydrogen production in India ranges from ₹320-400 per kg, significantly higher than grey hydrogen (₹160-200 per kg). Evaluate a company's strategy to reduce production costs through technological innovations, economies of scale, or process optimisations.

Consider this cost reduction pathway projected by industry analysts:

• Current cost: ₹320-400 per kg

• 2025 target: ₹250-300 per kg

• 2030 target: ₹150-200 per kg

Companies positioned to achieve or exceed these cost reduction targets may offer better long-term value.

• Integration with Existing Businesses

For conglomerates like Reliance and IOC, evaluate how green hydrogen initiatives integrate with their existing businesses. Companies that can leverage synergies with their current operations might have stronger competitive advantages.

• Financial Health and Capital Allocation

Green hydrogen projects require substantial capital investments with potentially long gestation periods. Assess a company's financial health, balance sheet strength, and capital allocation strategy to ensure it can sustain investments through the development phase.

Key financial metrics to consider:

• Debt-to-equity ratio

• Free cash flow generation

• Return on capital employed

• Capital expenditure plans

• Regulatory Risks and Policy Dependence

While government support is currently strong, regulatory changes or policy shifts could impact the sector's growth trajectory. Consider a company's dependence on subsidies or regulatory support and its ability to remain viable if these conditions change.

Future Outlook for Green Hydrogen Stocks in India

The future of green hydrogen stocks in India appears promising, driven by several key trends:

Declining Production Costs

The cost of producing green hydrogen is expected to decrease significantly over the next decade due to:

• Falling renewable energy costs (solar prices have declined by over 80% in the last decade)

• Improvements in electrolyser efficiency and manufacturing scale

• Technological innovations in storage and transportation

Analysts project that green hydrogen could achieve cost parity with grey hydrogen by 2030, potentially triggering widespread adoption across industries.

Industrial Applications Expansion

Green hydrogen applications are expanding beyond traditional uses to include:

• Steelmaking (replacing coking coal)

• Chemical production (green ammonia and methanol)

• Heavy transport (long-haul trucking, shipping, aviation)

• Energy storage for grid balancing

This diversification of applications creates multiple growth avenues for companies in the sector.

International Collaborations

India is actively engaging in international hydrogen partnerships, such as:

• The Green Hydrogen Alliance with the EU

• Bilateral hydrogen cooperation with Japan and Australia

• Participation in global hydrogen councils and initiatives

These collaborations provide Indian companies with access to global markets, technology transfer opportunities, and additional funding sources.

Emerging Business Models

Innovative business models are emerging in the green hydrogen ecosystem:

• Hydrogen-as-a-Service (HaaS)

• Integrated renewable energy and hydrogen hubs

• Joint ventures combining technological expertise with manufacturing capabilities

• Special Purpose Vehicles (SPVs) for project implementation

Companies pioneering these models may create significant shareholder value by capturing larger portions of the value chain.

Conclusion

India's green hydrogen sector presents significant growth potential as industry leaders position themselves in this emerging market. Despite challenges in cost parity and technology scaling, strong government backing and expanding applications create a promising investment landscape. When considering green hydrogen stocks, prioritise companies with solid financials, clear technology strategies, and effective business integration. With careful research and patience, these investments could deliver both financial returns and contribute to India's sustainable energy future.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Market capitalisation figures are approximate and subject to change. Investors should conduct their research or consult financial advisors before making investment decisions.