Sadhana Nitro Chem to set up green hydrogen facility; to raise Rs 50 crore – EQ
In Short : Sadhana Nitro Chem is planning to establish a green hydrogen facility with a capacity of 15-20 megawatts (MW). This initiative reflects the company’s commitment to renewable energy and the production of green hydrogen, which is generated using environmentally friendly methods, typically through electrolysis powered by renewable energy sources like solar or wind. This move aligns with the global push towards sustainable and carbon-neutral energy solutions.
In Detail : Its board has approved a rights issue and the proceeds will be used to acquire a 126-acre plot for the development of a solar facility and a wind energy installation
Intermediate specialty chemicals manufacturer Sadhana Nitro Chem Ltd. on Monday announced it foray into green energy for captive usage. The company, in a statement, outlined plans to establish a green hydrogen facility, utilising both a solar plant and a wind farm with a capacity ranging from 15 to 20 MW for self-consumption.
The board, the company said in a statement, has green-lit a rights issue, pending necessary approvals from regulatory authorities. The rights shares are priced at Rs. 121 per share with a premium of Rs. 120, aiming to raise a total of Rs. 49.95 crore, the statement said.
The funds from this initiative will primarily go towards acquiring a 126-acre plot. This land is earmarked for the development of a solar power facility and a wind energy installation, the company said.
These sustainable energy sources, it said, will generate electricity, which will be utilised for green hydrogen production through water electrolysis. This green energy expansion provides strategic advantages for backward integration, ensuring control over the energy supply.
“This facility, boasting a capacity of 15-20 MW, marks a significant milestone in our journey towards sustainability and innovation within the realm of intermediate specialty chemicals manufacturing,” said Abhishek Javeri, MD, Sadhana Nitro Chem Ltd.
“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,” he said.
Any excess green hydrogen produced will be offered for sale to external parties. Green hydrogen, produced using renewable energy sources, offers a clean and sustainable alternative to traditional hydrogen production methods, reducing carbon emissions, the company said.
“Green hydrogen facility is expected to yield substantial cost savings, significantly increasing the company’s bottom line. Beyond financial gains, this expansion offers us a strategic advantage through backward integration, granting us greater control over our supply chain,” said Javeri.
