Sadhana Nitro Chem Ltd., a prominent manufacturer specializing in intermediate specialty chemicals, 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.

Abhishek Javeri, MD, Sadhana Nitro Chem Ltd., said, “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-20MW, 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.”