- Company to acquire 126-acre land plot to establish solar and wind energy installation
- Energy from these-installations will be utilized for production of Green Hydrogen, which is completely free of carbon emissions (i.e. generates no carbon emissions)
- Hydrogen produced at the Green Hydrogen Facility is primarily for captive usage for the current plant and expansion of the para Aminophenol (self-consumption)
- After meeting it’s captive requirements, the company plans to sell any additional Hydrogen manufactured
Mumbai, 04 December 2023: 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.
Green hydrogen refers to hydrogen produced through a process that uses renewable energy sources, such as wind, solar, or hydroelectric power, to power the electrolysis of water. The electrolysis process involves splitting water molecules (H2O) into hydrogen (H2) and oxygen (O2), without generating carbon emissions. This method contrasts with traditional hydrogen production, such as steam methane reforming, which relies on fossil fuels and generates greenhouse gas emissions. By utilizing solar and wind power, the entire hydrogen production cycle becomes sustainable and emission-free. Green hydrogen holds immense promise as a clean, sustainable energy carrier.
Talking about the development, Mr. Abhishek Javeri, MD, Sadhana Nitro Chem Ltd., added, “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.”
About Sadhana Nitro Chem Ltd. : Established in 1973, Sadhana Nitro Chem Ltd., stands as a prominent manufacturer specializing in intermediate specialty chemicals. Sadhana Nitro Chem Ltd. operates from its state-of-the-art manufacturing facility situated in the Roha spread over 22 acres including 17 acres of MIDC land. Sadhana Nitro Chem Ltd.’s Facility is the 2nd Plant in the world to manufacture pAP from Nitrobenzene, with the company receiving Approval from the Maharashtra Pollution Control Board (MPCB) for consent to establish. The company has been awarded from the PLI scheme for manufacturing 36000 TPA of PAP in 2021, with the current production run rate of 3000 TPA being scaled rapidly. pAP is used in the manufacturing of Paracetamol, amongst other prescription drugs. The company is a government-recognized 2-Star Golden Export House, with 80% of the company’s sales being dedicated to exports to highly developed markets, such as Japan, China, Switzerland, the United States, Germany, other parts of Europe, South Korea and more. Sadhana Nitro Chem Ltd takes pride in its extensive client portfolio, which predominantly comprises multinational conglomerates such as L’Oreal, Bayer Crop Science, Huntsman Advanced Materials, Teijin, Mitsui Chemicals, IPCA, Ricoh Paper, Koehler Paper, and Mitsubishi Paper, among others. The company’s versatile product line finds applications spanning various industries, including Agro Chemicals, Aramide Fibre, Pharmaceuticals, Developers, Hair Colors, Dyes, Specialized Resins, Performance Chemicals, Optical Brightening Agents, Rubber Chemicals, Aerospace, Electronic Chemicals, Military Applications, Thermal Paper Intermediates, and more. The company is committed to quality and social responsibility, holding ISO certifications for ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007, and SA (8000). Sadhana Nitro Chem Ltd is listed on both BSE: 506642 and NSE: SADHNANIQ, and is currently celebrating its 50th year as a publicly listed company.
