Sadhana Nitro Chem Ltd., a manufacturer of intermediate specialty chemicals, announced its entry into green energy for captive use on Monday. In a statement, the company outlined plans to build a green hydrogen facility that would use both a solar plant and a wind farm with capacities ranging from 15 to 20 MW for self-consumption.
The board of directors has approved a rights offering, the company said in a statement, subject to regulatory approval. According to the statement, the rights shares are priced at Rs. 121 per share with a premium of Rs. 120, with the goal of raising Rs. 49.95 crore.
The funds raised through this initiative will be used primarily to purchase a 126-acre plot. According to the company, this land will be used to build a solar power facility and a wind energy installation.
Sadhana Nitro Chem
According to the company, these renewable energy sources will generate electricity, which will be used to produce green hydrogen via water electrolysis. This green energy expansion provides strategic benefits for backward integration, ensuring energy supply control.
“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, president and chief executive officer of Sadhana Nitro Chem Ltd.
Any excess green hydrogen produced will be sold to third parties. According to the company, green hydrogen, which is produced using renewable energy sources, is a clean and sustainable alternative to traditional hydrogen production methods, lowering carbon emissions.
“The green hydrogen facility is expected to result in significant cost savings, increasing the company’s bottom line significantly.” Aside from financial benefits, this expansion provides us with a strategic advantage through backward integration, giving us greater control over our supply chain,” Javeri explained.