Shares of several companies interested in producing green hydrogen were trading higher on Friday after the government notified the Green Hydrogen Policy. The stock price of Reliance Industries, Larsen & Toubro, Thermax, Siemens, Adani Enterprises and MTAR Technologies gained up to 4% amid hopes that the government focus on the use of renewable energy for the production of hydrogen will be beneficial for these companies.

Shares of Reliance Industries (RIL), the country’s most valued firm, gained as much as 0.5%, while Larsen & Toubro rose up to 1%. Among others, shares of Thermax, VA Tech Wabag, Adani Enterprises, Siemens, ABB India, Cummins India, and MTAR Technologies rose up to 4% on the BSE. Meanwhile, power companies such as NTPC and ReNew Power were trading lower with marginal losses. In comparison, the benchmark BSE Sensex was trading 0.38% higher at 58,113.

According to global brokerage firm Goldman Sachs, RIL would be among the biggest beneficiary of the new policy as the Mukesh Ambani-led company recently announced investments in the production of green hydrogen.

Reliance is accelerating global collaborations — especially in technologies to manufacture green hydrogen, storage battery and photovoltaic cells — before beginning construction of giga factories. Reliance New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries (RIL), plans to complete ₹60,000 crore investment by 2024 to build one of the largest integrated renewable energy manufacturing facilities in the world. Last month, the company signed a pact with the Gujarat government to invest ₹5.95 lakh crore in green energy projects as well as other existing and new ventures across the state over the span of 10 to 15 years.

Analysts at Nomura bets on Larsen & Toubro (L&T), saying that the infrastructure major is “significantly ahead in terms of steps taken for green hydrogen and fuel cell manufacturing”. Last month, L&T had signed a memorandum of understanding (MoU) with HydrogenPro, a Norway-based leading electrolyser technology and manufacturing company, for partnership to tap the emerging green hydrogen market. Under this agreement, L&T and HydrogenPro will jointly work towards setting up a joint venture in India for gigawatt-scale manufacturing of alkaline water electrolysers based on HydrogenPro technology for Indian market and other select geographies.

Nomura also picked VA Tech Wabag, Siemens, ABB India and Cummins India, saying that these companies can benefit as they have access to green technology.

Conglomerate Adani Group has signed a $5 billion deal with South Korean steelmaker POSCO that includes setting up of an integrated steel mill in Gujarat's Mundra. The agreement intends to further collaborate at the group business level in various industries such as renewable energy, hydrogen and logistics in response to carbon reduction requirements.

Ministry of Power on Thursday notified green hydrogen policy in line with the National Hydrogen Mission announced by Prime Minister Narendra Modi in his Independence Day speech on August 15, 2021. The Mission aims to aid the government in meeting its climate targets and making India a green hydrogen hub. This will help in meeting the target of production of 5 million tonnes of green hydrogen by 2030 and the related development of renewable energy capacity.

The policy promotes renewable energy generation as it will be the basic ingredient in making green hydrogen. The renewable energy to produce green hydrogen or green ammonia can be sourced from co-located or remotely located renewable energy plants. The remote plants can be set up by the same developer or a third party, or the renewable energy can be procured from the power exchange.

Follow us on Facebook, Twitter, YouTube & Instagram to never miss an update from Fortune India. To buy a copy, visit Amazon.