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Sadhana Nitro Chem to Set Up 15-20 MW Green Hydrogen Facility

The rights shares are being offered at Rs. 121 per share (a premium of Rs. 120), and the company will look to raise up to a total of Rs. 49.95 Crores.

December 04, 2023. By News Bureau

Sadhana Nitro Chem Ltd will foray in to land green energy for captive usage (self-consumption). The company will set up a green hydrogen facility, based on a solar plant and wind farm with a capacity of 15MW-20MW. The board approved a rights issue, subject to necessary approvals from regulatory authorities.

The rights shares are being offered at Rs.121 per share (a premium of Rs. 120), and the company will look to raise up to a total of Rs. 49.95 Crores. The funds of the rights issue to be predominantly used for acquisition of a 126-acre land plot. This land will be strategically employed for the establishment of both a solar power facility and a wind energy installation. These sustainable energy sources will be harnessed to generate electricity, which, in turn, will be utilised for the production of green hydrogen via water electrolysis.

This green energy expansion offers the company strategic advantage of backward integration, with control over its energy supply. Further, any surplus green hydrogen produced will be made available for sale to external parties.

Green hydrogen refers to hydrogen produced through a process that uses renewable energy sources, such as wind, solar, or hydroelectric power, to power the electrolysis of water. The electrolysis process involves splitting water molecules (H20) into hydrogen (H2) and oxygen (02), without generating carbon emissions. This method contrasts with traditional hydrogen production, such as steam methane reforming, which relies on fossil fuels and generates greenhouse gas emissions.

By utilizing solar and wind power, the entire hydrogen production cycle becomes sustainable and emissionfree. Green hydrogen holds immense promise as a clean, sustainable energy carrier.

Talking about the development, Abhishek Javeri, MD, Sadhana Nitro Chem Ltd., added, “We are thrilled to announce our strategic entry into the realm of green energy with the upcoming establishment of a pioneering green hydrogen facility. This facility, boasting a capacity of 15MW-20 MW, marks a significant milestone in our journey towards sustainability and innovation within the realm of intermediate specialty chemicals manufacturing. 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. Green hydrogen facility is expected to yield substantial cost savings, significantly increasing our bottom line. Beyond financial gains, this expansion offers us a strategic advantage through backward integration, granting us greater control over our supply chain.”

Tags:

Hydrogen / Fuel Cells