Sadhana Nitro Chem to set up green hydrogen facility; to raise Rs 50 cr

Sadhana Nitro Chem Ltd, which manufactures intermediate specialty chemicals, on Monday said it will set up a green hydrogen facility for captive usage and launch a rights issue to raise up to Rs 50 crore.

In a regulatory filing, the company said it "will foray into 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 also 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 Rs 49.95 crore.

The funds for the rights issue will be mainly used for the 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 the strategic advantage of backward integration, with control over its energy supply," the company said.

Any surplus green hydrogen produced will be made available for sale to external parties.

"The decision to venture into green energy aligns seamlessly with our commitment to environmental stewardship and operational excellence.

"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," Abhishek Javeri, Managing Director of Sadhana Nitro Chem, said.

Sadhana Nitro Chem Ltd operates from its 22-acre manufacturing facility situated in Roha, Maharashtra.